Tax (Fiscal) Representative
In Japan, tax payments to the government can only be paid through a local Japanese bank and through the use of tax payment vouchers, autopay, and preregistered “direct nofu” payments. Because such procedures cannot be performed overseas, OC & Associates can arrange to make payments and/or collect refunds on your behalf. We can provide reliable, prompt tax representative services for such foreign corporations and nonresident individuals who are associated with our corporate clients.
(ex. 1) When an entity which does not have a permanent establishment in Japan and the entity is required to file a tax return (e.g. consumption tax and fixed assets tax), there is a need to appoint a tax representative. There are also cases where an entity may elect to appoint a tax representative to obtain refunds due to the entity (e.g. consumption taxes).
(ex. 2) When Japanese corporations and/or branches of foreign corporations decide to pull out of Japan, final tax returns must be filed and any taxes due must be paid until the entity is liquidated. Tax representatives can be appointed in such cases.
Under Japanese income tax law, individuals who will be residing outside of Japan for more than one year will lose their Japanese residency and be considered nonresidents. However, any income in Japan during this period is subject to taxation under the Japanese income tax law.
(ex. 1) If real estate rental income in Japan is above a predetermined amount, an income tax return must be filed for each of those years.
(ex. 2) When expatriates return to their home country, an income tax return should be filed before their departure. If such return cannot be filed before his/her departure, we can coordinate with the expatriate from his/her home country.
Furthermore, inhabitance taxes which are levied based on prior year’s income, will be required to be paid for the year of departure.
To obtain a better understanding of these special procedures, we will be happy to explain the Japanese tax process and what roles we can play as your tax representative.