Does your tax consultant understand your operations? Are they giving you good advice?

Our tax service has 3 features:

(1) Qualified professionals address your issues at any time (Licensed tax accountants and CPAs)  
(2) Strength in finance arrangement (We will join you during meetings with banks if necessary)
(3) We will help you with any management issues

With such dramatic changes in management environments, we are constantly engaging with new issues in managing companies. We will support you with management issues such as business partnerships, overseas expansion, capital investment, and recruiting. We are able to offer relevant advice thanks to our wealth of consulting experience and our understanding of your tax and accounting operations.

We offer tax related services through group-member firm, Akasaka Sogo Accounting Co., Ltd.

• • Preparation of tax returns for corporation tax, income tax, consumption tax, property tax, etc.
• • Business succession planning (Inheritance tax, Estate tax planning, M&A advisory, etc.) • International tax advisory
• International tax advisory
• Support services during tax lawsuits
• Advice on implementing a consolidated tax filing system
• Consulting on organizational restructuring (Full support on everything from accounting and tax advice to contract preparation)
• Consulting on transfer pricing (Full support on everything from accounting and tax advice to contract preparation)

Standard services

• Monthly payroll calculation
• Year-end adjustments
• Preparation of payment statements for Resident tax and Withholding tax
• Paid holiday management
• Bonus calculation
• Preparation of bank FB data
• Absence calculation

Social insurance and Labor insurance services

• Procedures accompanying new staff, retirement, and other
• Yearly renewal of Labor insurance
• Yearly renewal of Labor insurance
• Renewal of labor agreements in compliance with notification of agreement on overtime and holiday work

Optional services

• Employee evaluations (Comprehensive evaluations)
• Bonus simulation
• Company rule building and operational assistance
• Application for grants from Employment and Human Resources Development Organization □ Payroll revision simulation
• Payroll data diagnosis
• Support with overtime systems such as discretionary work hours and assumed work hours system

Recently Japanese and foreign tax authorities have been intensifying their investigations of the international transfer pricing transactions of small-to-mid size enterprises.

In a transfer price tax system, the idea is that a parent company and its subsidiary companies should enjoy profit in proportion to the roles fulfilled, the risks assumed, and the important intangible assets held by each. As such, there is a great tax risk born by the parties in inter-company transactions in which the overseas subsidiary is under- or over-collecting compensation for services rendered to the parent company, or in which parent company expenses such as management fees are being under- or over-charged by the parent company.

In particular, Japanese tax authorities are stepping up the investigation of transactions with China. Unlike when investing in Europe of the US, in China there is little know-how and minimal infrastructure at the time of plant start-up, and the Japanese parent company often ends up with all of the costs. There are many cases in which a favorable transaction price is set due to the fact that there is more cost incurred than revenue generated locally in the initial phase of entry. This results in the problem of profit accumulating on the China side as the Chinese subsidiary grows. In addition, the joint venture partners are eager to bring Japan-side’s profit and know-how into China. Negotiations about this are difficult, creating a situation in which profits remain more on the China-side.

We offer the following services to reduce these kinds of tax risks in a transfer pricing system.

• Risk evaluation for transfer pricing
• Risk evaluation for transfer pricing
• Assistance with transfer pricing-related documentation