BLOG

In Japan, Taxable Income of Japanese company serves as the net of gross revenue less the costs, expenses and losses, on a accruals basis in accordance of fair accounting standards and lastly, as adjusted in accordance with the requirements of the tax laws.

In General, Japanese company is accountable to Japanese income tax on its worldwide income. In order to exclude the double taxation income foreign taxes are collected on Japanese company and may be accredited contrary from the Japanese corporate tax and local inhabitant tax. It is important that dividends collected from foreign subsidiaries are cleared on calculating of Japanese company’s Taxable income under Foreign dividend exclusion system.