Tax rate by region Japan

A foreign service provider looking to register as a recognized foreign business must complete the “Application for registration as a registered foreign business” form. This application must be submitted to the Commissioner of the NTA through the district director of the tax office responsible for the location of tax payment.

If a sole proprietor does not have an address or residence in Japan, or if a corporation does not have a main office or any office in Japan, they are required to appoint a Tax Agent. This Tax Agent will handle the submission of tax returns, notification documents, and the payment of taxes.

Provision of e-books, digital newspapers, music, videos, and software (including various applications such as games) via the internet.
Services that allow customers to use software and databases in the cloud.
Services that provide customers with storage space to save their electronic data in the cloud.
Distribution of advertisements via the internet.
Services that allow customers to access shopping and auction sites on the internet (e.g., charges on posting goods for sale, etc.).
Services that allow customers to access the place to sell game software and other products on the internet.
Provision via internet reservation website for accommodation and restaurants (those who charge on posting for the website from the businesses that operate accommodation and restaurants).
English lessons are provided via the internet.

If tax returns are not filed (which are due two months after the end of the year), non-residents may face the following penalties:

– If a return is not filed, a penalty of 15% of the payable JCT is applied (an additional 5% is added for the amount exceeding JPY 500,000).
– For the year 2015, an interest rate of 2.8% per annum is charged from the original due date to two months after the due date for payment on an assessment or late filing. Any amount that remains unpaid after this date is subject to an annual interest charge of 9.1%.

At present, Japan’s consumption tax law does not incorporate a CT invoicing system. Nevertheless, it is mandatory for taxpayers in Japan to keep books and records that validate the amounts paid and claimed. Every legitimate tax invoice must include the following details:

– The complete name of the supplier;
– The date when the taxable transaction took place;
– A description of the taxable transaction;
– The total charge applied to the taxable transaction;
– The complete name of the individual to whom the goods or services were provided.