International Tax

Business Operations in Japan (Portfolio 7200)

  • This Portfolio deals with the most common legal and tax problems encountered by foreign firms doing business in Japan.

Description

Tax Management Portfolio, Business Operations in Japan, No. 7200, deals with the most common legal and tax problems encountered by foreign firms doing business in Japan. Foreign operations within Japan are usually conducted through a limited liability stock corporation known as a kabushiki kaisha (KK) or through the registered branch of a foreign corporation. Although all forms of business organizations are discussed, the KK and the branch are analyzed in sufficient detail to enable a lawyer, accountant or business executive to become fairly well acquainted with their basic legal and tax characteristics. A typical set of articles of incorporation is included in the Worksheets.

The Detailed Analysis includes a discussion of the major elements in the taxation of domestic and foreign corporations. Because of the importance of the role of permanent establishments in determining resident taxability of a foreign firm in both domestic law and in the tax treaties, they are discussed at considerable length separately.

The domestic and tax treaty aspects of the Withholding Income Tax are also discussed in detail because of the extensive amount of business that is conducted with Japan on a nonresident basis. The full text of the U.S.-Japan Income Tax Treaty is included in the Worksheets together with all of the principal forms used to claim tax exemption or a reduced rate of tax based on the treaties.

Separate chapters deal with the taxation of individuals resident in Japan and inheritance and gift taxation. The Worksheets include further material to assist individuals in understanding the taxation of a foreigner resident in Japan.

This Portfolio may be cited as Takagi, 7200 T.M., Business Operations in Japan.

Table of Contents

I. Japan — The Country, Its People and Economy
II. Operating a Business in Japan
III. Forms of Doing Business in Japan
IV. Principal Taxes
V. Corporate Income Tax (Domestic Taxpayers)
VI. Taxation of Nonresidents — Permanent Establishment in Japan
VII. Taxation of Nonresidents: Withholding Tax
VIII. Taxation of Partnerships
IX. Individual Income Taxation
X. Inheritance and Gift Taxes
XI. Consumption Tax (Shohizei)
XII. Social Security Taxes
XIII. Inter-Company Pricing
XIV. Undistributed Profits of Designated Tax Haven Subsidiaries
XV. Avoidance of Double Taxation
takagi_shimon_2015
Shimon Takagi
Partner
Takagi Law Office
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