2024 Guide to an Accountant in Japan

Paying taxes is an unfortunate obligation, but it’s something we all have to carry out and understand. With the cultural and language barriers in Japan, taxing can become even more daunting than it already is. However, for those looking for an accounting firm in Japan and employed foreigners who think they need an accountant but are unsure, this ultimate guide to a Tax Accountant in Japan is tailored to address your specific needs.

Whether you’re doing your taxes individually or seeking assistance from a tax accountant in Japan, you may have questions such as “Who should use a tax accountant?”, “What can a tax accountant do for you?”, and “What are the different accounting services available in Japan?”. Rest assured, we will address all these questions and more to provide you with comprehensive insights into the role of a tax accountant in Japan.

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What are the ‘Big 3’ types of taxes in Japan?

Before delving into the accounting details, it’s armenia phone number library essential to first understand the three major types of taxes that form the pillars of the Tax System in Japan:

1. Consumption Tax: Paid by individuals and corporations. Except for the first two years, it applies based on taxable sales after this period. Japan is changing the exemption rules in October 2023, Check out our article on the New Invoice System in Japan guide to an accountant.

2. Individual Tax: Paid by freelancers, self-employed, and certain salary income earners, the Kakutei Shinkoku (確定申告) deadline for filing is March 15th. There comes a point when you generate enough revenue where becoming a corporation will benefit you more. Learn more about when to incorporate your business from our article Tax Reduction: When to Incorporate Your Business.

3. Corporate Tax: A combination of National Tax and Local Tax. Minimum payment of 70,000 ~80000 Yen (depending on your local government), regardless of profit or loss. Learn exactly how much you’ll need to pay for your company in our guide to corporate tax in Japan.

What is the difference between CPA and Tax Accountant in Japan?

Before finding the right accountant, it’s essential to understand the differences between the Certified Public Accountant (CPA) and the Tax Accountant (TA) in Japan. These two financial roles cater to diverse client profiles and have unique areas of expertise guide to an accountant, making it crucial to make an informed choice based on your specific needs.

CPA in Japan: As specialists serving listed companies, CPAs focus on auditing and attestation. They can also handle Tax Accountant tasks if registered.

Tax Accountant in Japan: Catering to SMEs and sole proprietors, Tax Accountants excel in tax returns and bookkeeping. However, they cannot obtain CPA registration.

Selecting the right accountant is vital for ensuring financial compliance and success. Businesses can choose CPAs for listed companies or Tax Accountants for SMEs and sole proprietors, finding the expertise they need for their specific requirements. In this article, we will be focusing on the Tax Accountant (TA) role in Japan.

Who needs a tax accountant in Japan?

The need for a tax accountant depends on your will allow you to launch specific mailing personal situation. If you work for a Japanese employer who calculates your taxes for you, you may not need an accountant. However, having a tax accountant in Japan is advisable especially if you’re self-employed and don’t have the time to sit down and do your taxes for 10 and 20s+ of hours on end.

A tax professional can be extremely useful if:

You’re an employee and need to do taxes for your home country

If you’re a U.S. citizen or an employee in Japan but receive income from your home country, you need to file taxes in these countries as well. This can be a big hassle or something you may forget about easily, absorbed in your daily life in Japan. However guide to an accountant, there are strict deadlines and translations that need to be done, something a tax accountant can help you do. See the section about Do you need an accountant in Japan for personal finance? for a more in-depth explanation.

You’re a sole proprietor/self-employed person working multiple jobs

Being self-employed or being a sole proprietor of a business is a great achievement, but taxes can be a setback because there are a lot of difficulties tax can bring. Understanding tax procedures in and of itself is difficult enough, let alone in Japanese.

Besides that, if you ask a tough accounting question to 5 accountants in Japan, you’ll probably get 2 to 3 different answers, so you want to make sure you know the right answer to your question.

As a self-employed worker or sole proprietor, you also want to avoid making any mistakes when filing taxes (a very common thing unfortunately). Hiring the right tax accountant can save you from any oversight or error and keep you compliant with Japanese tax rules and regulations.

A tax accountant in Japan can also help you in getting organized more quickly from day one of starting your own self-employed career or business guide to an accountant. Having an accountant can give you the space to focus on your business goals and dreams, without spending any of your time worrying about taxes.

You’re founding a corporation

If you run a corporation or want to set up a belize lists company in Japan, you’re faced with different legalities altogether. In this case, a tax accountant in Japan will definitely come in handy. A tax accountant will not only handle your taxes, but can consult you on the best practices, so you save money going forward.