Japan Outsourcing Services: Overview
JTAX offers a full range of traditional and specialized Japan Outsourcing Services.
All our services can be scaled to meet the needs of companies with a single employee or several hundred.
Our traditional Japan Outsourcing Services include:
- 1Tax Services: Including initial tax filings, corporate income tax returns, and consumption tax (VAT) returns. Learn more about our Japan Tax Services.
- 2Finance Function: Including accounting, expense payment, and bank account management.
- 3Payroll & HR: JTAX offers a comprehensive solution to client’s payroll and HR needs in Japan. Learn more about our Japan Payroll & HR Service.
JTAX is also able to offer a number of specialized outsourcing services including:
- 4 Japan Nominee Directors: The incorporation process is smoother and internal control is strengthened when a Japan nominee director is utilized. Learn more about our Japan Nominee Director Services.
- 5Japan Work Visa: Our Japan Work Visa Service shifts the burden of work visa applications to our qualified Japanese professionals. This reduces the risk of application errors and speeds the application process. Learn more about our Japan Work Visa Services.
Please Contact Us for more information about our Japan Outsourcing Services
Japan Outsourcing Services - FREQUENTLY ASKED QUESTIONS
Outsourcing simply means that important basic functions associated with running a company in Japan (tax, accounting, payroll, etc.) are provided by a trusted third party.
JTAX’s team has more than 20 years’ experience providing outsourcing solutions to foreign companies doing business in Japan. Our clients have ranged from publicly listed multinationals to the Japan operations of foreign start-ups.
Even a relatively modest Japan operation will require solutions for functions such as Japan tax, accounting, management reporting, expense payment, bank account management, etc.
Beyond these basic functions, our clients often choose to outsource other key functions including the local director role (i.e., use a Japan nominee director) and work visa applications.
In most cases, it makes sense to outsource key functions rather than handle such functions in-house.
Key reasons to outsource in Japan include:
a. To Strengthen Internal Control: The Japan operations of foreign companies face a challenging internal control environment.
Significant internal control issues include:- Time zone issues make it difficult to maintain regular contact with a Japan based team.
- Language difficulties, particularly with respect to source documents, make oversight by the parent company very difficult.
- Where an employee acts as director, that individual is deemed to have full authority to represent the company. This makes fraud a real possibility.
b. Technical Expertise :Outsourcing to a professional firm provides comfort that the team handling important functions have the required technical skill. This is especially true in the current environment where there are regular changes total and accounting rules.
c. Cost Effectiveness :Outsourcing is more cost-effective than trying to assemble a team of bilingual professionals to work in-house.
JTAX provides comprehensive and cost-effective tax outsourcing solutions to foreign companies doing business in Japan.
Key components of our service include:
1. Handling the (time sensitive) initial corporate tax filings that are required following the establishment of an entity in Japan.
2. Reporting any changes to the tax authorities – for example where there has been a change of address or directors.
3. Providing ongoing corporate tax consulting and compliance for Japanese entities. This includes Japanese corporate tax returns (both local and national) and VAT (Japanese consumption tax) returns.
In addition, JTAX can provide assistance with more complex issues such as ensuring our client’s maintain an acceptable tax structure in Japan (cost-plus, buy-sell, etc.)
Please click here for more information about our Japan Tax Services.
By outsourcing the Japan finance function to JTAX,our clients can be confident that bills are paid on time, that transactions are properly recorded for Japanese statutory purposes, and that foreign management receives timely reporting in a familiar format.
The basic components of JTAX’s Japan finance function outsourcing services are:
1. Accounting & Bookkeeping Services, and
On a monthly basis, JTAX’s Finance Function Outsourcing Service includes the following activities:
a. Our professionals interface directly with your Japanese bank and make funding requests to cover upcoming expenditures.
b. JTAX pays the invoices that your Japan entity has received from third parties.
c. We transfer salary to employee’s bank accounts in Japan. JTAX can handle the calculation of payroll via our Japan Payroll & HR Service. We also transfer employee social insurance and labor insurance contributions to the relevant Japanese authorities.
d. We pay Japanese corporate taxes (both provisional and final) across to the Japanese tax authorities.
e. We provide monthly financial reporting to foreign management (in English)in a format determined by the client.
f. We maintain Japanese statutory accounts (in Japanese) to satisfy Japanese regulatory requirements.
JTAX is able to provide a comprehensive payroll service to foreign companies operating in Japan.
Key features of our Japan payroll service include:
1. Establishment of Japan payroll for new companies in Japan.
2. Annual payroll reporting to the relevant Japanese authorities.
3. Monthly payroll processing.
4. Payroll / HR related consulting Including:
- Tax-efficient compensation of employees in Japan (foreign expats and Japanese nationals).
- Tax-efficient employment agreements.
- Statutory work rules.
- Director compensation issues.
Benefits include a smoother incorporation process, reduced risk of non-deductible director compensation, and strengthened internal control.
Click here to learn more about the benefits of utilizing JTAX’s Japan Nominee Director Service (and download our Japan Nominee Director Guide).
JTAX is one of the few professional service organizations that is able to offer an outsourced Japan Nominee Director Service. We provide qualified individuals to act in the following roles:
1. Japan Nominee Representative Directors for Kabushiki Kaisha (“KK”).
2. Japan Nominee Executive Managers for GodoGaisha (“GK”).
3. Japan Nominee Branch Managers for the Japan Branches of foreign companies in Japan.
4. Japan Nominee Japan Representatives for the Japan Representative Offices of foreign companies.
Benefits include a smoother incorporation process, reduced risk of non-deductible director compensation, and strengthened internal control.
Click here to learn more about the benefits of utilizing JTAX’s Japan Nominee Director Service (and download our Japan Nominee Director Guide).
JTAX’s Japan Work Visa Service allows foreign companies to outsource the work associated with bringing foreign employees to work in Japan.
Outsourcing shifts the burden of preparing work visa applications to our experienced team of immigration professionals and reduces the risk of time consuming errors.
Ideally, work visa issues should be considered as part of the initial company set-up since issues related to directors and paid in capita can be critical.
Click here to learn more about JTAX’s Japan Work Visa Service.