What's "Tax Representative" ?
If you are a non-tax resident for Japanese tax purpose but having some of income arising from and rooted in Japan, what we call " Japan sourced income", you probably have legal obligation to filing the income and to pay the taxes to National Tax Authority (NTA) of JAPAN.
For outsourcing the tax obligation to file your tax returns in Japan, you can hire a tax agent as "TAX REPRESENTATIVE" who a tax resident in Japan. TAX REPRESENTATIVE (TR) will gather the information of your taxes, organize them in order and calculate the income and its duties to be paid on behalf of you.
In addition, if you would be able to assign a TR among Certified Public Tax Accountants (CPTAs) for your Tax Risk Management, it means that you can also get tax information and timely its updates made about Japanese Tax Laws to file you taxes properly, and you would be kept free from being worried about tax compliance.
Our office, Okamura Certified Public Tax Accountant Office has been offering trustworthy tax and accounting services to many of wealthy foreigners and non-tax residents with communicating them in English and making needed reports in English. Please feel free to contact us for looking for the services you need.
What are Tax Representative's roles?
Case 1: Income from rent of immovable property in Japan
If you have owned immovable property(s) in Japan to gain renting income from them, you need to file the yearly income and to pay the income tax at the dead line of March 15th of the next year.
Our office can take the whole role behalf of you outside Japan, such as receiving tax notices, filing any of change in your tax information to NTA and filing the income tax returns with consumption tax return if needed.
In addition to the tax service, we also offer you property management services. We'll monitor your bank account to check to see if rents have been made on time, and if not, we can do demand procedures for the late payments on behalf of you.
Furthermore, we can appropriately control your real estate funds across the board from the establishment of the vehicle in Japan to the reporting to the investors outside Japan.
Case 2: Capital gains from ceding immovable property
If you have a plan to cede the ownership of an immovable property located in Japan, we suggest you to carefully look through special tax rules and treatments in order to reduce the tax burdens would arise.
We can serve you giving the best tax strategy for each capital transaction, such as applying reduced tax rates and/or income deductions for optimizing tax risks and benefits you have.
Case 3: Consumption Tax filing on cross-boarder transaction (Updated!!)
If you are an business enterprise outside Japan to sell your company's products or services to Japanese tax resident(s), you probably have to file Consumption tax (GST) returns and to assume the tax burden in Japan under the Consumption Tax Law of Japan (CT). A significant change in CT has been announced by NTA, which going into effect on or after October 1st 2015 to tax non-tax resident businesses to file/pay consumption tax (GST) when they sell its certain online services via the Internet.
We can take all the duties in CT filing on behalf of you as your tax representative.
Case 4: Capital gains from non-public company's shares
When you cede the ownership of Japanese non-public company's share(s), even if you are non-tax resident in Japan, you may be imposed of withholding income tax at 15% on the the transfer value of the transaction of selling the share(s).
We can manage the strategy and the procedures of the transaction as well to optimize tax risks and benefits.
Case 5: Exercise the right of Stock Option
When you exercise stock options (SO) that you have been given from your employer, you may have to file the income as your employment income gain earned in Japan under certain conditions.
We can find out the right way for the SO transactions and give you the best advise to apply preferential measures.
Case 6: Dividends, Interest and Royalties Income
Withholding taxes would be imposed on the income from dividends, interest and royalties, when you are paid from Japanese businesses. But are you sure that thetax rate of WHT imposed on your income is accurate based not only on Japanese Tax Law but Tax Convention (Tax Treaty) made between your home country and Japan ?
We can give you the best practice of international tax conventions to minimize your WHT burdens.
Muneo Marc OKAMURA