Overview
Corporate tax planning focuses on minimizing the tax burden while complying with Japanese law. Considerations include deductible expenses, net operating loss (NOL) carryforwards, group taxation, interest limitation rules, and tax incentives. The 2025 tax reform extended the carryforward period for interest deductions from 7 to 10 years.
Main Themes
Tax rates and tax base:Understanding the composition and tax rates of corporate tax, corporate resident tax, and business tax.
Carryover of losses and tax credits:Blue return corporations can carry over losses for up to 10 years if certain conditions are met.
Interest expenses and thin capitalization rules:There are restrictions on the deductibility of interest paid to related parties.
Capital Gains and Dividends:We evaluate participation exemptions for specific stock holdings and tax-exempt provisions for capital gains. Group Taxation: We consider the use of consolidated taxation and group offset systems.
Group Taxation: Considering the use of consolidated taxation or the group tax sharing system.
Our Services
We design tax-efficient structures, evaluate deductions, advise on tax elections, and respond to systemic changes such as interest limitation rules.