Japan

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Country Knowledge

Our local member provided the following preliminary information about doing business in this country.
Please contact the firm for more information and obtain professional advice in each country concerned.
Our local member will be happy to help you proceed with your business!

General information

Languages :

  • Japanese

Population : 125 000 000

Currency: yen

Current Exchange Rate to USD: USD 1 = 132 yen

Standard corporate income tax rate:

34 %

Main tax incentives:

tax deduction for R&D expense and Salary increase

Other incentives:

Preferrable taxation for retirement allowance

Standard dividend withholding tax rates:

20,42 %

Branch taxation:

As same as taxation for corporation

Standard Interest withholding tax:

20,32 %

Interest expense deduction rules:

Thin capitalization rule applied

Standard royalty withholding tax rate:

20,42 %

Laws and government

Common law: No

Civil law: Yes

Religious: No

Other infos about legal system :

No

Federal / national only?: No

State / provincial too?: Yes

Other infos about governmental layers:

No

Data privacy rules?:

Yes

Data security rules?:

Yes

Standards & Tax treaties

Number of tax treaties: 84 tax treaties with 151 countries/regions

OECD MLI treaty signatory?: YES

Type of tax: Consumption tax

Taxes on foreign products?: No consumption tax imposed on foreign products

Taxes on foreign services?: No consumption tax imposed on foreign services

Typical time and cost to incorporate a local private company: 3-4 weeks

Typical time and cost to register a branch of a foreign company: 3-4 weeks

Typical business/tax/other issues in the country:

Currently very difficult to open corporate bank account

The information provided on this website is intended for general informational purposes only and should not be construed as professional advice. While our members make every effort to ensure the accuracy and reliability of the information presented, we cannot guarantee its completeness, timeliness, or suitability for any particular purpose.

We strongly recommend that you seek professional advice from a qualified expert in the relevant field before making any decisions or taking any actions based on the information provided on this website. Your reliance on any information presented on this website is at your own risk.

Please note that the information on this website is subject to change without notice, and we assume no responsibility or liability for any errors or omissions in the content. By accessing and using this website, you agree to release us from any and all claims, liabilities, and damages arising from your use of the information provided herein.

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