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Japanese accounting services

Japanese accounting services

Dependable Japanese bank-account, accounts payable and accounts receivable management and reporting services, ensure that at the end of every month you know exactly how much your Japanese office spent and why. Accurate year-end financial statements, income tax returns and Japanese consumption tax returns, prepared by licensed accounting professionals, ensure your Japanese company is compliant and avoids surprises when audited by the Japanese tax office. Our accounting services include the following benefits:

  • Knowledgeable and experienced in Japanese company financial management and reporting.
  • Bank-account management services, including accounts-payable and accounts-receivable options, can be provided through a proxy bank-account operated by Venture Japan or through your corporate Japanese bank-account.
  • Monthly reporting options ranging from simple bank-account reconciliation spreadsheet to full general ledger, in Excel format, with trial balance and income statement using your preferred chart of accounts.
  • Year-end statutory financial statements (balance-sheet and profit and loss statement), income tax return and consumption tax return, prepared by licensed accounting professionals.
  • Supported day-to-day with a full range of bilingual Japanese business support services.
  • Can be ended at any time, without cause, simply by giving 30-days notice.
  • Low monthly fees.

Every Japanese company, whether kabushiki kaisha KK, godo kaisha GK or branch-office in Japan, must register with the National Tax Agency and local tax offices (metropolitan and ward or city if headquartered in Tokyo, or prefecture and city if headquartered outside Tokyo) within 60 days of establishment to qualify for Blue Form status. Blue Form status allows a company or branch-office to:

  • Accrue employee and professional services withholding taxes (but not withholding taxes on payments overseas) and pay at the end of each half-year (July 10 for January – June withholding taxes and January 20 for July – December withholding taxes).
  • Extend its filing of year-end income tax and consumption tax returns by 30 days.
  • Carry forward losses to offset against profits for up to 7 years.

Every Japanese company, whether kabushiki kaisha KK, godo kaisha GK or branch-office in Japan, must keep accurate records of employee, professional services, and freelance services withholding taxes withheld each month. It must then pay the withheld taxes on or before the 10th day of the following month (January 20th for December withholding taxes), except as noted above for companies and branch-offices with Blue Form tax status.

Every Japanese company, whether kabushiki kaisha KK, godo kaisha GK or branch-office in Japan, must file a balance-sheet, monthly profit and loss statements, and corresponding returns for national and local income taxes, within 30 days of its financial year-end. A company with JPY10,000,000 or more paid-in capital, a branch-office in Japan of a foreign company with JPY10,000,000 or more paid-in capital, or a company or branch-office whose annual income exceeded JPY10,000,000 in a previous financial year, must also file a consumption tax return together with its income tax returns. A company or branch-office with Blue Form status must file its income tax return and consumption tax return within 60 days of its financial year-end.

If a company pays its taxes even one day late, it will suffer an immediate fine of 5% of the amount due plus daily interest. If the tax office files a Demand of Payment for overdue taxes, the penalty increases to 10% plus daily interest. If a company files its tax-returns even one day late or needs to file a claim for overpaid withholding taxes, income taxes or consumption taxes, it significantly increases its chances of being subjected to an exhaustive and expensive tax audit. Japanese companies file their tax returns and pay their taxes, both year-end and interim taxes, on time.