Japan Branch Office(type of business entity)
投稿日:
■Outline and establishment
Branch is generally able to perform sales activities in Japan.
Branch must be registered in Japan and can open corporate bank account under the branch’s name. A branch manager (representative of the JP branch) must be appointed in order for the registration. The branch manager must be JP resident (no nationality requirement).
It typically takes about four weeks to set up a Japan branch.
■Corporate governance
The branch manager is just manager… The foreign headquarter(=HQ) make judgement of the business policy for the JP branch
■Taxation
(General)
A branch is subject to corporate tax in Japan. Taxation is as almost same as coporate type entity such as KK and GK. It is noted that financial statement of HQ must be submitted to tax office when JP branch file its branch financial statement.
(Per capita tax)
Per capita tax is imposed even if the branch do not have income. The amount due it 70,000 yen if the amount of HQ’s paid in capital is less than 10 mil yen. But the per capita tax is increased to 290,000 yen and 950,000yen per year if HQ’s paid in capital is “100 mil to 1 bil yen” and “1 bil to 5 bil yen”.
Branch is not good if HQ’s paid in capital is bigger.
(PE issue)
Branch is a PE (=Permanent Establishment) of HQ. If the HQ sales to the customers in Japan, such sales can be taxed in Japan as the sales is attributed to the JP branch.
It is case by case. But in general, setting up branch is not good if HQ have a sales to JP customer since the HQ is regarded to set up PE in Japan.
(Deemed sales )
The JP branch must recognize sales to HQ if the JP branch support HQ activity (even if the branch do not have sales in Japan). Under JP tax purpose, JP branch is considered as an independent entity from HQ. The idea is, if the branch was independed company from HQ, the company had issued invoices to the HQ. The JP branch is taxed as independed corporate entity from HQ.

関連記事
-
-
確定申告書の提出期限が4月16日に延長されます!
国税庁は27日、新型コロナウイルスの感染拡大防止のため、2019年分の所得税と贈 …
-
-
「PEなければ課税なし」と代理人PE認定の関係
「PEなければ課税なし」の原則 外国法人が日本で自社の商品を販売したとしても、日 …
-
-
郵便外交員500人申告漏れ計17億円 (新聞報道を解説)
個人の保険外交員が、確定申告の際に費用計上した、携帯電話使用料やガソリン代が、税 …
-
-
消費税計算端数処理はどうする?
商品の価格は、原則として消費税を含めた総額で表示しなければなりません。これは「消 …
-
-
利子割の廃止
法人に限定してが平成28年1月1日以後に受ける銀行利子等に係る税金、通称「利子割 …
-
-
シニアプロゴルフツアー最終予選
シニアプロゴルフツアーの最終予選が、高知の黒潮CCで行われます。今回は、個人的に …
-
-
過大退職金に関する判決
泡盛「残波」を製造する比嘉酒造が、国税当局から、過大役員報酬と、過大役員退職金に …
-
-
振替納税や還付口座に指定できない銀行
所得税の確定申告の時期が近づいてきました。納税については振替納税、還付については …