Investing in Japan
How to Set Up Business in JapanSection 3. Taxes in Japan
3.5 Tax treaties
In order to prevent double taxation on the same income, Japan has concluded tax treaties with many countries for the purposes of promoting investment and economic exchange with those countries through providing legal stability in taxation, eliminating international double taxation, and preventing tax evasion and avoidance.
The provisions of tax treaties supersede those of domestic law. For the tax liability in Japan of individuals and corporations domiciled in a country with which Japan has a tax treaty, the location of the source of income (the provisions concerning where income that provides the rationale for taxation is generated) deemed taxable income under Japanese law (the provisions concerning where income that provides the rationale for taxation is generated) may at times be amended from Japan to her counterpart (or from her counterpart to Japan) to accord with these tax treaties. For various types of income, Japan where income is generated has tax reduction or exemption measures.
Through these measures, majority of international double taxation can be avoided.
Section3: Table of Contents
- 3.1 Overview of Japanese corporate tax system for investment in Japan
- 3.2 Domestic-sourced income
- 3.3 Overview of corporate income taxes (corporate tax, corporate inhabitant tax, enterprise tax)
- 3.4 Overview of withholding income tax
- 3.5 Tax treaties
- 3.6 Overview of consumption tax
- 3.7 Overview of individual tax system