When you start up business in Japan, you would have to choose establish a corporation besed on the Japanese Corporate Law (KABUSHIKI-KAISHA), or a branche office of foreign company.
The table below, which compares the difference retlated to tax issues, shows that usually the tax burden for subsidiary will be advantagerous, when the foreign parent is a huge company.
Because the amounts of per capita levy in a business year are fixed amounts, based on the amount of Capital stock of the Parent company.
Nevertheless, each case should be judged individually, so you should be make a decision, considering your nature of your business, employees, and so on.
|
Branch office
|
Subsidiary |
| Per Capita levy |
Decided based on the amount of capital of the head office.If over 10 mil Yen;180,000If over 100 mil Yen, ;290,000
|
Decided based on the amount of capital of subsidiary.If less than 10 mil Yen;70,000 Yen |
| Enterprise tax,Based on business size |
Same as Per Capita levy. |
Based on the capital of subsidiary.If the capital is less than 10 mil Yen, the company is not subject to the tax based on the size of business.
|
Corporate tax rate |
If the amount of capital is over 100 mil Yen, the corporate tax rate will be larger. |
If the amount on capital is less than 100 mil Yen, the tax rate is basically lower than large company. |
PLS do not hesitate to contact us via Inqury form
Chihiro Kawai
CPA
Certified Public Tax Accountant
564-1-6-502, Shinano-cho, Totsuka-ku,
Yokohama 2440801
Phone:+81-45-577-9971
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