Key Japanese Tax Considerations for Inbound Companies: Focus on Family Company Taxation

Many inbound companies fall under the category of “Family Company” under Japanese tax law. Have you gained a clear understanding of how a family corporation is defined under Japanese tax law, and what important tax implications may arise if your company falls into this category? These rules are unique to Japan, and an insufficient understanding may lead to unexpected tax obligations for your company. 

In particular, the “Retained Earnings Tax” applicable to specified family companies has been increasingly enforced in recent years. It is not uncommon for companies to realize their classification only after being pointed out during a tax audit and when they are facing additional tax assessments. 

Koichi Takahashi, Manjul Agrawal, and Atsunori Tsujimura from HLS Global Co., Ltd. will present an outline of Family Company Taxation, including its definition and special tax provisions. They will also provide an overview of other key Japanese tax considerations for inbound companies, covering topics such as Japan’s unique corporate tax rules on the deductibility of directors’ bonuses, Thin Capitalization and Earnings Stripping Rules, as well as important focus areas in tax audits of foreign-affiliated companies. This session will be highly valuable in understanding the potential tax implications for your business operations in Japan. 

After the presentation, participants will have the opportunity to ask questions in a Q&A Session. The event will conclude with a networking session for participants to mingle and network.   

Join us for an insightful seminar for foreign companies already operating or looking to establish a taxable business in Japan. 

*17:10 – 18:00 Networking Session

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