Wednesday, November 18, 2009

Tax filings after establishing your company/branch in Japan

After establishing a company or branch office in Japan, you have to lodge filings with Taxation Authorities, Local Government, Labor Standards Inspection Office, Public Employment Security Office, Social Insurance Office, and so on.

The most important tax filing is Application for Blue Form Tax Return. Even if your business is small at the beginning, you should not miss it. This application should be filed within three months after establishment of the company/branch (if the initial taxable year ends within three months, the filing should be made before the end of taxable year).

If the blue form status is granted, net losses under income in each business year can be carried forward for the next seven years. If you do not apply for the blue form tax return, losses cannot be carried forward.

The procedure is here (sorry, Japanese only).

Besides above, there are several tax filings that may be beneficial to you. For further information, I recommend to hire an accountant for consultation.

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