Accountancy in Japan

>> Allowances in Japan

Income tax credit

Income tax withheld at source from a payment to a corporation may be credited against the tax on ordinary income and on undistributed profits, unless such payment is excluded from gross income.

Credit for foreign taxes

To eliminate international double taxation on income, the foreign taxes levied on a Japanese domestic corporation may be credited against Japanese corporation tax. This is called an ordinary foreign tax credit. A corporation has the option of crediting foreign taxes or of treating them as deductible expenses. The choice should be exercised on the total amount of foreign taxes on income.


Latest version updated 16th October 2017

Country Breakdown

127

Million

Population

¥

Japanese Yen

Currency

$ 4.94

Trillion

GDP

377,962

km2