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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1133 |
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Japan has diplomatic relations with nearly all independent nations and has been an active member of the United Nations since 1956.
GOVERNMENT AND POLITICAL CONDITIONS
Japan is a constitutional monarchy with a parliamentary government.
They have an anti monopoly act ?jftc
Japanese business income taxes include the following:
every Japanese company, irrespective of domestic or foreign ownership, is treated as a Japanese resident and is liable to pay corporate taxes (~42% including national and local income taxes and 'inhabitants' tax) in Japan on its total income whether earned in Japan or overseas (so if your Japanese subsidiary also sells in South Korea, Taiwan etc...
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it will pay taxes in Japan on those revenues),
all royalties (but not payments for physical products) paid by a Japanese customer to a non-resident foreign company (including royalties paid by a Japanese company to its foreign parent or foreign affiliate) will incur a 20% withholding tax which must be deducted by the Japanese customer from the value of the invoice (for software, media, patent or license rights etc...
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