Thursday, September 12, 2013

Q: Important reminder on formalities for establishing Japan branch office.

A: A foreign company wishing to setup a branch office in Japan must register its presence at local Register Office. A foreign company branch in Japan without legitimate registration is illegal and will be penalized if it engages in sales activity. As to corporate tax filing, the branch must report the income generated in Japan. Bilateral tax treaty is practical tax saving but need careful long-term planning to be applied effectively.

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