PropTax Japan
For Overseas Investors
“PropTax Japan” Service
A Japanese tax compliance package comprising 4 key services for overseas investors owning real estate in Japan:
1. Tax Representation (Mandatory)
2. Tax Filing & Assessment (Conditional)
3. Bookkeeping (Optional)
4. Home Accountant Coordination (Optional)
1. Tax Representative In Japan
(Mandatory)
Acting as your legal representative in Japan to receive official tax notices on your behalf. This is required for all overseas investors, even if you only own a personal vacation home that generates no rental income.
2. Tax Filing & Pre Assessment
(Conditional)
If you own real estate for rental purposes, various types of tax filings are required. In the year you sell the property, filing is mandatory even if it is for personal use. Filing can be a way to recoup withholding taxes you have already paid.
3. Bookkeeping
(Optional)
Even with a small number of transactions, professional bookkeeping is highly recommended (e.g., consumption tax liability often depends on accurate bookkeeping).
4. Home Accountant Coordination
(Optional)
Direct coordination with the accountant in your home country to provide detailed Japanese tax information (e.g., for foreign tax credit purposes).
Articles: Why you need a tax representative in Japan?
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Japan Tax Representative Guide for Overseas Investors Buying Real Estate
This guide explains Japan’s tax representative system for overseas investors buying real estate. Learn the key requirements, documentation, and steps to ensure compliance and smooth property transactions. Definition: Who is an “Overseas Investor”? In this guide, the term refers to Individual Non-residents (those without a domicile in Japan more than one year) and Foreign Corporations…
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How to Pay Japanese Taxes as an Overseas Property Owner
If you are an overseas investor who owns real estate in Japan, you will have tax payment obligations, such as Fixed Asset Tax or Income Tax. This guide explains the practical payment methods available. More importantly, it highlights a Japan-specific paradox related to the banking system that can lead to payment delays and penalties—and how…
Core Service for Clients
Office of the CFO Support
– Streamlining financial reporting to ensure clarity
– Providing the data foundation for strategic decision-making
– Augmenting internal resources to accelerate IPO preparation
Regular on-site visits are included for clients in Tokyo and Kanagawa. For other regions, support is primarily provided online.
Tax Compliance Services
– Managing compliance with Japanese Corporate and Consumption Tax regulations
– Preparing standard Individual Income Tax returns or sole proprietors and directors
– (Available exclusively to retainer clients) Coordinating with top-tier specialists for complex restructuring, M&A, or inheritance
Services are provided entirely online.
Tax Representative in Japan
– Acting as the designated Tax Representative for overseas investors owning property in Japan
– The Firm’s Principal personally assumes the role of your tax representative in Japan
– Serving as your official point of contact to receive and manage tax notifications
Services are provided entirely online.
Bookkeeping & HR Operations
– Delivering accurate and timely monthly bookkeeping
– Managing HR administration and acting as the liaison for labor attorneys
– Ensuring seamless integration of payroll data into financial records
Services are provided entirely online.
FAQ
Q 1 . What exactly defines a “Overseas” Investor ?
Under Japanese tax law, “Overseas” status is determined by the classification of “Non-resident” for individuals and “Foreign Corporation” for entities.
1. Individuals: Non-resident
A “Non-resident” is any individual who does not qualify as a “Resident.” (A “Resident” is defined as someone who has a domicile—their principal base of life—in Japan, or has maintained a residence there for one year or more.)
2. Corporations: Foreign Corporation
Classification is based on the “Head Office Location Rule.” Any corporation with its head office or principal place of business located outside of Japan is classified as a Foreign Corporation.
Q 2 . Do you offer services to foreign investors who reside in Japan?
Yes, but under our standard domestic service, not the “PropTax Japan” package.
Please note that tax compliance for residents is typically more complex than for non-residents. Japanese residents are generally subject to taxation on their “Worldwide Income.” Taxable income includes, but is not limited to, sources such as:
– Income from assets held in other countries
– Pensions received from your home country
– Salary or compensation received outside Japan
Additionally, the scope of taxation varies depending on your length of stay (specifically, whether you have resided in Japan for more than 5 years).
Therefore, we will need to review your situation individually. While we can typically assist with standard cases, we may need to assess whether we can take on engagements involving highly complex cross-border schemes.