The scope of taxable income for corporate tax differs by the mode of activity of a foreign corporation in Japan, as will be described later. For the purpose of determining the income of non-residents and foreign corporations subject to withholding tax, domestic-sourced income is defined as follows:
Certain interest on public and corporate bonds, interest on savings and deposits derived from offices in Japan
Interest on loans for business operations in Japan
Dividends on shares or securities investment trusts of domestic corporations
Consideration for use of real estate or similar property in Japan; rental/lease of ships or aircraft to residents or domestic corporations
Salaries, wages, bonuses and other compensation for the provision of services in Japan
Retirement allowances and pensions for services rendered as residents
Consideration for the services of freelance professionals in Japan
Certain consideration for rendering professional services in Japan excercised by entertainers, freelance professionals, technicians, etc.
Usage fees or consideration for transfers of patent rights, know-how, copyrights, etc., in connection with services in Japan
Usage fees for machinery and equipment in connection with services in Japan
Prizes offered in Japan for publicity/advertising purposes
Pensions paid on the basis of agreements concluded in Japan
Profit on redemption of discount bonds issued in Japan
Certain income resembling interest income in nature
Certain income from the transfer of real estate in Japan
Distribution of profits in accordance with a silent partnership contract (Tokumei Kumiai contract)
Certain income other than the above derived from the management, ownership, or transfer of assets in Japan
Domestic business income
Distribution of profits pursuant to a partnership agreement provided for by Civil Law, and other kindred partnership agreements
(Jetro "How to Set Up Business in Japan" http://www.jetro.go.jp/)
Ishiwari Accouting Office
Ishiwari CPA office is a professional service firm which has provided a wide range of accounting, financial and tax consulting services to clients since 1990's. Our philosophy is to build close relationships with clients, meet each business needs and help them to achieve business objects by offering tailored solutions to our clients at the reasonable fee. We provide wide ranges of services including, Accounting, Tax advisory services, Business Startup & IPO support, Financial and Management Consulting, Payroll and Social insurance, and outsourcing services to both Japanese companies and Non-Japanese International companies.
Ishiwari CPA office provides services with Japanese and American companies operating in Japan. We are committed to provide the highest quality of professional services in order to add values to your business operations.
Name of office; Ishiwari CPA Office
Address; Takanawa OS Bldg 6F, 3-19-20 Takanawa, Minato-ku, Tokyo 108-0074, Japan
Phone; +81-3-3442-8004
