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| This page explains basic concepts of Taxes in Japan. |
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| Taxes in Japan (Updated on 2012/4/3) |
Overview of Taxes paid by Corporations in Japan is explained in English. Very helpful and easy to understand an overall idea for beginners. National Corporate Income, National Withholding Tax, Consumption Tax are explained. A portion of Tax Reform 2012 is reflected.
Additionally, overview of Taxes paid by Individuals in Japan is explained
in English. Very helpful and easy to understand an overall idea for beginners.
National Individual Tax and the taxpayer of Inheritance Tax are explained.
A portion of Tax Reform 2011 and Recovery from East Japan Disaster is reflected. |
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| Tax Appeal/Disputes (Updated on 2012/5/13) |
Generally, the amount of taxes are calculated by taxpayers, and tax returns
have to be filed by the due dates with corresponding payments. Tax Authorities
have authorities to examine the tax returns. It is often said that the
National Tax Auditors try to visit all the corporations every 3 to 5 years,
before the statue of limitation expires. If there is a tax audit, tax auditors
might point out that the taxpayer's calculations are wrong, or that the
taxpayer's interpretation of tax laws are wrong. If taxpayers do not agree
with the tax auditors, taxpayers can complain. In the case of National
Tax, basically, taxpayers can file complaints to the National Tax Office
in charge first. If the Tax Office do not agree with the taxpayer, the
taxpayer can complain to the National Tax Tribunal, which is an organization
under the National Tax Agency. If the taxpayers are not satisfied with
the ruling yet, the taxpayer can go to court as the next step.
There are a lot of important court decisions, and some of them are introduced
in a Court Judgment page. |
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| History of Modern Tax Laws in Japan |
| First modern tax laws were enacted in 1887, and German Tax Laws were used
as a model. In Japan, we have a lot of tax codes instead of a uniform tax
code, but this is because we followed the German system. Recently, a lot
of Reforms are performed, and Japanese Tax Laws are very much influenced
by US Tax Law (IRC) in a lot of areas. |
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| Taxes and Tax Authorities in Japan |
| There are a lot of taxes in Japan. Some of them are taxed by National
Government and others are taxed by local governments. There are 2 types
of Local government. One is Prefecture level and the other is City level. |
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| Tax Audits (Updated on 2012/5/13) |
There are several type of Tax Audits.
In the case of Nataional Taxes, Coproration Income Tax Audit, Consumption Tax
Audit, Withholding Tax Audit and Transfer Pricing Tax Audit are major examples
for corporations. Duration of a Tax Audit depends on type of tax audits
and the situations, but usually lasts from a few days to 6 months. However,
if it is a tax audit for Transfer Pricing, it could be as long as a few
years.
It is very important to prepare for a tax audit including having an additional
human resource.
The party that performs National Tax Audit is different depending on types
of a coporation. If it is a tax audit of a branch of a foreign corporation
or a big corporation, the tax audit is performed by Regional Tax Bureau,
which is an upper organization of a Tax Office. It is said that it is tougher
to deal with Regional Tax Bureau than a Tax Office.
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