When foreign corporations form their business bases in Japan to start up operations, they face various issues and procedures that must be considered, such as the selection of offices and banks, the registration of the company (e.g. branch or corporation), filing various reports with the tax offices, and enrollment in the social insurance and labor insurance systems. At the initial stage of setting up operations, it may not be economical to hire personnel who are knowledgeable of the above procedures.
The PricewatehouseCoopers (PwC) PATHFINDER Group can provide a variety of one-stop services to foreign corporations doing business in Japan. Our services include undertaking accounting and tax related administrative work, as well as tax consulting services. According to each client’s particular needs, we can introduce lawyers, banks and real estate agents necessary. High quality services are provided through PATHFINDER by utilizing the PwC global network and overseas PATHFINDER groups.
By studying company information and policies and interviewing key company personnel, we can provide the necessary advice to recommend the appropriate business structure in Japan to support the company's business development and tax strategies. After the basic structure is presented, we can provide the necessary information to register the company and proceed with the registration on behalf of the client.
After completing the company registration, we can prepare the various tax reports and other required reports depending on the nature of business. In addition, we can provide advice on consumption tax issues, including whether the company should elect to be a consumption taxpayer, if applicable.
Under Japanese labor regulations, Japanese employees should be enrolled in the social insurance systems. We can prepare the necessary documents for submission to the relevant government authorities and undertake the administrative procedures to file them with the social insurance office and Labor Standards Bureau.
The hiring or resignation of employees requires filing a report to the appropriate governmental administrative body, and certain reports are required to be submitted each year. We can prepare and perform the necessary administrative procedures on behalf of the company. We can also perform other administrative matters, such as the social insurance procedures for new and/or resigning employees.
Transferring employees of foreign corporations to Japan requires a visa for entrance into Japan. We can assist in visa application procedures, such as providing necessary information and preparing documents for filing.
According to the salary structure of each company, we will calculate the net salary amount by computing the gross salary amount, withholding tax, social insurance, labor insurance, etc., and prepare a salary breakdown for each employee. Upon request, we can execute payments to banks, remit bonus allowances, paym the withholding taxes and inhabitants taxes, etc.
We can also provide services relating to calculating the year-end adjustment for settlement of the income withholding tax, including the preparation of salary and withholding payment slips. Services also include the preparation of salary payment and other tax reports for inhabitant tax purposes and the collection of withholding tax from the payment of retirement allowances in the case of an employee resignation.
We can provide services relating to the preparation of the accounting records. These services include bookkeeping services based on invoices and receipts, including the preparation of a monthly Trial Balance, Balance Sheet and Income Statement. At the end of each fiscal year, we can prepare the financial statements that should be attached to the final corporate tax return. In addition, we can prepare the reporting packages for the foreign head office.
Our tax compliance and outsourcing services vary to suit each client's particular circumstances. Tax outsourcing services can be expanded to include broad range of tax outsourcing, including strategic and planning functions as well as tax reporting, forecasting and managing the client's relationship with tax authorities.
Preparation of tax returns and tax reports for corporate tax (including consolidated corporation tax filing), consumption tax, etc.
Preparation of tax returns for individual income tax purposes, including tax returns for foreign nationals seconded to Japan or Japanese nationals who are seconded overseas.
Preparation of tax information to be disclosed for companies that have undertaken a corporate reorganization. Such companies are subject to special rules relating to, for example, the calculation of taxable income and the use of tax losses carried forward.
Attendance at tax audits, including the negotiation of complex technical issues with the tax authorities and strategies for dispute resolution.
