Global tax planning
Leveraging the network that we have built with leading legal and accounting offices overseas, we propose schemes that simultaneously solve accounting and taxation problems in Japan and various related countries, etc.
Leveraging the network that we have built with leading legal and accounting offices overseas, we propose schemes that simultaneously solve accounting and taxation problems in Japan and various related countries, etc.
As economies and businesses have become increasingly borderless, there has been an increase in activity related to the creation of cross-border supply chains and electronic commercial transactions in recent years. Various problems have arisen concerning taxation for multinational corporations, as countries’ taxation systems, taxation treaties, and other international rules related to taxation have failed to keep pace with the speed of the international development of corporate and investment activity. Developed countries also face the issue of the need to raise taxes to rectify fiscal deficits from low tax income caused by low growth and the mobilization of enormous fiscal stimulus to address the COVID-19 pandemic. Accordingly, the shift to stronger taxation compliance is gathering momentum around the world.
In Japan, the payment of taxes is considered a social responsibility, and Japanese companies tend to have a high level of tax morality. On the other side of this trend, it has been said that Japanese companies have a relatively low awareness of global tax planning and taxation management. As changes in the environment surrounding taxation accelerate, companies must take strategic measures related to international taxation, otherwise they may face significant taxation risks, regardless of whether or not they have a high level of tax morality.
At Tokyo Kyodo Accounting Office, we offer all forms of accounting and taxation consulting related to international commerce and investment. Since our founding, we have built a network with leading legal and accounting offices overseas. Leveraging this network enables us to support the strategic taxation management of our clients by developing and proposing schemes, etc., that simultaneously solve accounting and taxation problems, etc., in Japan and various related countries.
・R&D, a non-routine function, can be gradually transferred to regional headquarters in, for example, Singapore, together with patent rights and other related IP.
・Products are sold globally from the regional headquarters.
・A certain amount of ordinary profits are allocated to each sales company as routine consideration, and any remaining excess profits are allocated to regional headquarters such as Singapore. This reduces the effective tax rate across the Group as a whole.
・Certain measures can be implemented to ensure that regional headquarters are not subject to taxation under the combined taxation for foreign subsidiaries in Japan.
At Tokyo Kyodo Accounting Office, we analyze clients’ existing tax position overseas, particularly for Japanese companies entering markets overseas, and identify any problems. We also propose improvement plans aligned with client needs, primarily from the dual perspectives of maximizing post-tax cash flows at the group level and satisfying demands related to consolidated financial statements.
■Taxation advice related to entry to overseas markets, establishment of branches/subsidiaries outside Japan, etc.
■Global tax strategy formulation advice
■Advice on the effective use of holding companies and headquarters outside Japan
■Measures related to tax haven systems and overseas tax deduction planning
■Taxation advice related to supply chain efficiency improvements
■Taxation advice related to IP management efficiency improvements
■Accounting and taxation services for the Japanese subsidiaries of foreign corporations
■Asset transfer and international succession involving property outside Japan and relatives residing outside Japan