Taxes in Japan
The effective functioning of any economy in the world depends on the country's taxation system. Like most countries, duties in Japan are collected at both the national and local levels.
This country provides for many deductions that are fixed by law. The main external body of the Japanese Ministry of Finance is the National Administration. In a country with a population of 125 people, municipal fees account for more than half of all budget revenues.
The tax burden on individuals and companies in Japan is one of the highest in the world
The country attracts many foreign investors. You can do business here without even knowing the language. But tax legislation is worth studying thoroughly. Otherwise, serious problems may arise.
The E-COMMERCE BROKER company knows everything about duties in Japan, and it is ready to share its knowledge with you. If you have a desire to open a business in the Land of the Rising Sun, then our experienced specialists will help organize this. They will assist in registering a company, assist in obtaining the necessary licenses, and opening a bank account.
Features of taxation in Japan
The state uses the principle of residence. But, here everything is a little different from other countries. Taxes in Japan have a different structure. The divisions of contribution payers are divided into three groups, and not into two, as everyone is used to:
- Residents with Japanese citizenship or persons living in the country for more than 1 year who contribute income, regardless of the source of their receipt.
- Non-permanent residents are foreigners who have lived in the Land of the Rising Sun for 5 or 10 years. They do not have a Japanese passport and are considered to be in the same category as described above.
- Non-residents pay the fee only if they have accumulated funds on the islands.
There are about 50 duty groups in Japan.
Main taxes in Japan:
- from sales – 5%;
- for car owners - 5% of the price of the vehicle and upon registration;
- for alcohol – 10%;
- tobacco products – 40%;
- oil – 22-30% for local companies, and 29,33-40,87 for foreign ones;
- gas – 5%;
- for services (hotel accommodation, meals in a restaurant) – 0,12%.
Japan has a preferential tax system. The excise tax discount is available to employees, local working people, entrepreneurs, and families in which two spouses work. But if only one works, then you have to pay more duties. For legal entities in the country, there is an excise tax on the number of employees. The duty is calculated individually, and VAT is 8%.
Comprehensive assistance from E-COMMERCE BROKER specialists
The E-COMMERCE BROKER company will help you understand everything that concerns tax systems in Japan. Our specialists resolve all issues related to organizing a business in the shortest possible time:
- will help register a company в selected jurisdiction;
- will provide assistance in opening an account at a financial institution;
- will provide support in organizing accounting services;
- will help with hiring staff for your company.
Japan is a country that offers enormous prospects for business development. Here you can choose a lot of destinations that, for example, are not available in Europe and the USA. We work for you.
With us, your business will begin to develop rapidly. After all, our company will help at all stages of its development. By starting a business on distant and exotic islands, you will quickly begin to earn a good income. Tax rates in Japan quite high, but if you organize your business correctly, it’s not scary.
Contact us and success awaits you, we guarantee it!
