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Japan

Godo Kaisha (Limited Liability Company)

Taxes

Country code – JP

Legal Basis – Civil law

Legal framework – Companies Act (Act No. 86 of July 26, 2005)

Company form – Limited Liability Company (Godo Kaisha, GK)

Liability - The liability of the partners is limited to the amount of their capital contributed.

Capital – Each member must make a capital contribution of at least JPY 1 at the time of incorporation.

Members – A GK may be incorporated by one or more members, who can be resident or non-resident, natural or juristic persons. Details of the members are available publicly.

Managing Members – A GK may have one or more managing members, who can be resident or non-resident, natural or juristic persons. One or more representative members are selected from amongst the managing members with the power to legally bind the company.

In the case where a managing member is a legal entity, such legal entity needs to appoint natural person who will execute the business affairs. 

Secretary – GKs may appoint a secretary, but it is not mandatory.

Registered Address – A company must have a registered office in Japan.

General Meeting – There are no annual general meeting requirements.

Electronic Signature – Permitted.

Re-domiciliation – Inward/outward re-domiciliation is not allowed.

Compliance – A GK must annually file tax returns with the National Tax Agency and the relevant metropolitan or prefecture tax office.

GKs are also required to submit financial statements annually. Companies whose capital exceeds JPY 500 million, or whose total amount of liabilities as of the latest balance sheet date exceeds JPY 20 billion, are required to appoint an external auditor and submit audited financial statements.

An annual report to the the Social Insurance Office, the Labour Standards Inspection Office, and the Employment Security Bureau, is also required. A report must also be submitted to the Minister of Finance and other Ministers, when applicable.

  • Tax transparent entity
  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 34.60% Offshore Income Tax Rate
  • 34.60% Corporate Tax Rate
  • 34.60% Capital Gains Tax Rate
  • 34.60% Dividends Received
  • 20.42% Dividends Withholding Tax Rate
  • 20.42% Interests Withholding Tax Rate
  • 20.42% Royalties Withholding Tax Rate
  • 1 Losses carryback (years)
  • 10 Losses carryforward (years)
  • FIFOAverage cost Inventory methods permitted
  • 151 Tax time (hours)
  • 14 Tax payments per year
  • 14.921% Social Security Employee
  • 14.921% Social Security Employer
  • 55.945% Personal Income Tax Rate
  • 10% VAT Rate
  • 74 Tax Treaties

Country details

Japan
JPY
Tokyo
Asia
j a
127288000

The State of Japan (Nihon-koku / Nippon-koku) is a nation in Eastern Asia, a stratovolcanic archipelago consisting of about 6,852 islands. Located in the Pacific Ocean, it lays off the eastern coast of the Asia Mainland  and stretching from the Sea of Okhotsk in the north to the East China Sea and near Taiwan in the southwest. Its four largest islands are Honshu, Hokkaido, Kyushu and Shikoku, which make up about ninety-seven percent of Japan’s land area.

Japan is inhabited by more than 126 million people, 13.5 of which lives in its capital, Tokyo, and 38 million in its metropolitan area. The other largest Japanese cities include Yokohama, with 3.8 million inhabitants, Osaka, 2.7 million, Nagoya, 2.27 million, and Sapporo, 1.9 million. Its most spoken language is Japanese, although there are 11 regional recognized languages. Its legal tender  currency is the Japanese Yen (JPY), which is the third most traded currency in the FOREX, after the US Dollar and the Euro.

Japan is one of the great world economic powers. The country has the world’s third-largest economy by nominal GDP and the world’s fourth-largest economy by purchasing power parity and is the fourth largest exporter and importer of goods. Its major industries are banking, insurance, real estate, retail, transportation and telecommunications. It is home to some of the world’s largest banking entities by bank assets and the Tokyo Stock Exchange stands as the second largest in the world.

Japan has a large industrial capacity and is home to some of the largest, best and most advanced technologically producing motor vehicles, electronic equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles and processed foods. Regarding the primary sector, in commercial fish fishing, it ranks second in the world behind China in the tonnage of fish caught, having one of the largest fishing fleets in the world.

Tax treaties

Country Type Date Signed
Fiji DTC  1962-09-04
Kazakhstan DTC  2008-12-19
Philippines DTC  1980-02-13
Hungary DTC  1980-02-13
Kuwait DTC  2010-02-17
Romania DTC  1976-02-12
United Kingdom DTC  2006-02-02
Brunei Darussalam DTC  2009-01-20
Denmark DTC  1968-02-03
Turkmenistan DTC  1986-01-18
Armenia DTC  1986-01-18
Guernsey TIEA 2011-12-06
Portugal DTC  2011-12-19
Switzerland DTC  1971-01-19
Bermuda TIEA 2010-02-01
Qatar DTC  2015-02-20
United States DTC  2003-11-06
New Zealand DTC  2012-12-10
South Africa DTC  1997-03-07
Moldova, Republic of DTC  1986-01-18
Liechtenstein TIEA 2012-07-05
Belgium DTC  1968-03-28
Netherlands DTC  2010-08-25
Saudi Arabia DTC  2010-11-15
Russian Federation DTC  1986-01-18
Bahamas, The TIEA 2011-01-27
Slovakia DTC  1977-10-11
Mexico DTC  1996-04-09
Israel DTC  1993-03-08
Luxembourg DTC  1992-03-05
Brazil DTC  1967-01-24
Belarus DTC  1986-01-18
Poland DTC  1980-02-20
Viet nam DTC  1995-10-24
Canada DTC  1986-05-07
Thailand DTC  1990-04-07
Egypt DTC  1968-09-03
Kyrgyzstan DTC  1986-01-18
Indonesia DTC  1982-03-03
Bulgaria DTC  1991-03-07
Singapore DTC  1994-04-09
Tajikistan DTC  1986-01-18
Czech Republic DTC  1977-10-11
Ukraine DTC  1986-01-18
Georgia DTC  1986-01-18
Jersey TIEA 2011-12-02
Germany DTC  1966-04-22
Bangladesh DTC  1991-02-28
Malaysia DTC  1999-03-19
Italy DTC  1969-03-20
Zambia DTC  1970-02-19
Pakistan DTC  2008-01-23
France DTC  2007-01-11
Sweden DTC  1999-02-19
Australia DTC  2008-01-31
Cayman Islands TIEA 2011-02-07
Finland DTC  1991-03-04
Oman DTC  2014-01-09
China DTC  1983-09-06
Sri Lanka DTC  1967-12-12
Ireland DTC  1974-01-18
Turkey DTC  1993-03-08
India DTC  1989-03-07
Hong Kong, China DTC  2010-11-09
Macao, China DTC  2014-03-13
Samoa TIEA 2013-06-04
Austria DTC  1961-12-20
Spain DTC  1974-02-13
Norway DTC  1992-03-04
Korea, Republic of DTC  1998-10-08
Azerbaijan DTC  1986-01-18
Isle of Man TIEA 2011-06-21
Uzbekistan DTC  1986-01-18
United Arab Emirates DTC  2013-05-02

Tax treaties Map

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