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Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
Accounting And Tax System In Japan
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Accounting And Tax System In Japan

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    • 1. Accounting and Tax system in Japan SCS Global Professionals Co., Ltd. CORPORATE CATALYST INDIA PVT LTD (In Joint Venture with SCS GLOBAL , Japan)‏
    • 2. Accounting <ul><li>“ Triangle System” in the accounting system </li></ul><ul><ul><li>The Corporation Law ( Kaisha Ho)‏ </li></ul></ul><ul><ul><li>Financial Instruments and Exchange Law ( Kinyuu Shohin Torihiki Ho )‏ </li></ul></ul><ul><ul><li>Corporation Tax Law ( Hojinzei Ho )‏ </li></ul></ul>
    • 3. Accounting Law Corporation Law Financial Instruments and Exchange Law Corporation Tax Law Authorities Ministry of Justice Financial Services Agency National Tax Agency Purpose Protect the interests of shareholders and creditors Protect the interests of investors Fairness and certainty of taxation Scope Companies Listed Companies Corporations
    • 4. Accounting <ul><li>‘ GAAP’: </li></ul><ul><li>Accounting Principles by Corporate Accounting Board(FSA)‏ </li></ul><ul><li>Accounting Standards by ASBJ(Accounting Standards Board of Japan)‏ </li></ul><ul><li>Guiding Principles by JICPA (Japanese Institute of Certified Public Accountants)‏ </li></ul><ul><li>Etc. </li></ul><ul><li>Differences btw Japan GAAP and IFRS, US GAAP? </li></ul>Corporation Law Companies Calculation Rules ( Kaisha Keisan Kisoku)‏ GAAP
    • 5. Accounting <ul><li>Internal Control </li></ul><ul><ul><li>1. “J-SOX” (Japanese version of Sarbanes-Oxley Law): </li></ul></ul><ul><ul><li>Section 24-4-4, Financial Instruments and Exchange Law ( Kinyuu Shohin Torihiki Ho )‏ </li></ul></ul><ul><ul><li>2. Section 362-4-6, 362-5, The Corporation Law ( Kaisha Ho)‏ </li></ul></ul>
    • 6. Tax Major taxes <ul><li>Company </li></ul><ul><li>Corporation tax ( 法人税 ) – National </li></ul><ul><li>Business tax ( 事業税 ) – Local </li></ul><ul><li>(c) Inhabitant tax ( 都道府県民税・市町村民税 ) - Local </li></ul><ul><li>(d) Consumption tax ( 消費税等 ) - National & Local </li></ul><ul><li>(e) Withholding Income Tax ( 源泉所得税 ) – National </li></ul>Individual (a) Income tax ( 所得税 ) – National (b) Business tax ( 事業税 ) – Local (c) Inhabitant tax ( 都道府県民税・市町村民税 ) – Local (d) Consumption tax ( 消費税等 ) - National & Local (e) Inheritance tax ( 相続税 ) – National (f) Gift tax ( 贈与税 ) - National
    • 7. Tax Tax Rates: Corporation tax : 30% of taxable income Business tax : 9.6% of taxable income Inhabitant tax : 20.7% of the Corporation tax (+ Per Capita Tax (70,000yen-))‏ <ul><li>Effective Rate ? </li></ul>
    • 8. Tax Schedule of tax return and tax payment : (a) Interim tax return and interim tax payment File and pay within two months from the end of the sixth month of the fiscal year. (b) Final Tax Return and final tax payment File and pay within two months from the end of the fiscal year. (One month extension could be made for the filing due to audit etc. )‏
    • 9. Tax Transfer pricing : Transaction between foreign related companies would be subjected to Japanese transfer pricing taxation. Tax Haven : Use of the offshore corporation as tax haven requires to combine the taxable income for the tax purposes. Thin Capitalization : Interest expenses are disallowed in case of the thin capitalization.
    • 10. Tax Tax Treaty : Tax treaty has been concluded between 55 countries. India-Japan : Withholding tax : Company has necessity to withhold income tax for the payment of salary, professional fee, etc. Dividend Interest Royalty Technical Service 10% 10% 10% 10%
    • 11. Tax Carry forward loss : Carry forward loss (taxable loss) would be expired after 7 years. Foreign tax credit : Japanese corporations which pay foreign national or local taxes based on income may take a credit against Japanese corporation tax subject under the foreign tax credit rules.
    • 12. Tax Individual Tax : (a) Income tax rate 0-1,949,000yen : 5% 1,950,000yen - 3,299,000yen : 10% 3,300,000yen - 6,949,000yen : 20% 6,950,000yen - 8,999,000yen : 23% 9,000,000yen - 17,999,000yen : 33% 18,000,000yen - : 40% (b) Inhabitant tax rate : 10%
    • 13. Tax Individual Tax : <ul><li>Deduction from income </li></ul><ul><li>Basic exemption : 380,000yen </li></ul><ul><li>Exemption for dependents : 380,000yen </li></ul><ul><li>Exemption for spouse : 380,000yen </li></ul><ul><li>Exemption for working students : 270,000yen </li></ul>
    • 14. Tax Individual Tax : <ul><li>Source of income subject to taxation </li></ul><ul><li>Non-resident : </li></ul><ul><li>Income in sources of Japan </li></ul><ul><li>(b) Resident </li></ul><ul><li>(i) Non-permanent resident : </li></ul><ul><li>(A resident taxpayer of non Japanese nationality who has had domicile or residence in Japan for an aggregate period of five years or less within the last ten years.)‏ </li></ul><ul><li>Income in sources of Japan : Taxable </li></ul><ul><li>Income from sources in abroad : </li></ul><ul><li>Paid in Japan - Taxable </li></ul><ul><li>Paid in Abroad - Remitted to Japan is taxable </li></ul><ul><li>(ii) Permanent resident : All income is taxable </li></ul>
    • 15. Tax Schedule of tax return and tax payment : (a) Estimated income tax prepayment (i) Paid between July 1 st - July 31st (ii)Paid between November 1 st - November 31 st (b) Final Tax Return and final tax payment File and pay by 15 th March for the prior calendar year
    • 16. Tax Consumption tax : <ul><li>Tax rate : 5% (National tax 4% and Local tax 1%) </li></ul><ul><li>Tax payer </li></ul><ul><ul><li>Company and individual which transfers property or provides services in Japan in return for payment. </li></ul></ul><ul><ul><li>Company and individual who removes foreign goods from a bonded area. </li></ul></ul><ul><li>It is not necessary for a taxpayer to have a residence or domicile in Japan in order to be subject to the Consumption tax. </li></ul>
    • 17. Tax Consumption tax : Schedule of tax return and tax payment: (a) Interim tax return and interim tax payment Tax payer must file interim tax returns and make interim tax payments if the amount of Consumption tax on their return for the prior year exceeds certain limits. (b) Final Tax Return and final tax payment(refund)‏ Tax payer must file and pay within two months after the end of tax periods. (Generally refund would be made within two months after the filing)‏
    • 18. SCS Global Company Name : SCS Global Professionals Co., Ltd. Established : September 2002 President : Kinichi Shotoku (Japanese and US CPA)‏ Head Office : Tokyo 10th flr Zenkoku Tobacco Center Bldg., 2-16-2, Nishishinbashi, Minato-ku, Tokyo, Japan 105-0003 http://www.scsglobal.co.jp Phone: +81-3-5403-7117 Fax: +81-3-5403-7118 Offices : China, Vietnam, Philippines, Malaysia, Thailand, Singapore, Indonesia, India, USA Corporate Catalyst (India) Pvt Ltd JP House, 118 Shahpur Jat, New Delhi 110049, India Phone: +91-11-4100-9999 Fax: +91-11-4100-9990 http://www.ccindia.com
    • 19. THANK YOU

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