If you require tax return preparation for your Japanese subsidiary or if the subsidiary accounting department requires advice on taxation, our vast knowledge and experience at KOMIYAMA & Co. Group will take care of it.
We have been working as experts of tax and accounting since 1960 in Japan and have 70 staff members working for various industry clients in Japan, US, and other companies.
In Japan, it is necessary to prepare tax returns based on financial statements that comply with Japanese accounting standards. For a subsidiary of a non-Japanese corporation, multiple tax policies that are not required from Japanese domestic corporations are applied. This makes it necessary to prepare the accounts and tax return with the applicable regulations in mind.
For example: When a fund is remitted by the overseas parent company, the decision to treat the fund as capital or loan may arise. In this case, a system of taxation known as thin capitalization taxation, which is not applicable to a domestic corporation must be considered. This is a system that does not recognize interest on a fixed amount of debt when capitalization is insufficient for the Japanese subsidiary company. When this system is applied, even if interest is paid the fund is not recognized as a cost, resulting in a tax increase.
In addition, it is necessary to consider the withholding tax and export exemption regarding overseas transactions.
In recent years, depending on the profit of the Japanese subsidiary, the application of Transfer Pricing (TP) is often being insisted by the tax authorities. Accordingly, advance investigation and preparation of documents becomes necessary.
At KOMIYAMA & Co. Group, we posses expertise in international tax and accounting area that meet these demands. Our professionals have served many clients, gaining vast experience in their field. We will carry out accounting and tax services in line that meets your needs. After preparing the tax return based on financial statements that comply with the Japanese accounting standards, we will prepare a report package that conforms to the accounting standard of the parent company, such as US GAAP and/or IFRS.
We also prepare foreign tax returns with cooperation with CPAAI Member Firms (over 60 countries, 150 offices).
With our highly knowledgeable and experienced professionals, we provide a variety of services regarding operating business in Japan. If you have any interest in our services please feel free to contact us!