Service
PropTax Japan
For Overseas Investors
1. Tax Representative
(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 may be required. In the year you sell the property, filing is mandatory.
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).
Standard Service for Clients
FAQ
Q 1 . What exactly defines a “Overseas” Investor ?
A1.
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?
A2.
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.