I. Introduction: The Critical Role of "Place of Supply" in Japanese Consumption Tax (JCT) For any business involved in transactions that might have a connection to Japan, understanding the "place of supply" rules under Japanese Consumption Tax (JCT) law is fundamental. JCT, known as Shōhizei (消費税)

I. Introduction: Understanding Japan's Consumption Tax (JCT) - A Value-Added Tax Japan's Consumption Tax (JCT), known in Japanese as Shōhizei (消費税), is a broad-based indirect tax levied on the supply of most goods and services in Japan, as well as on imported goods. It functions similarly

I. Introduction: The Perils of Ambiguity – Withholding Tax in Cross-Border Contracts with Japanese Entities When structuring international business transactions involving payments from Japan to foreign entities or non-resident individuals, meticulous attention to tax implications is paramount. One critical area often overlooked in contractual drafting is the explicit allocation of Japanese

I. Introduction: The Essentials of Japanese Withholding Tax on Cross-Border Payments When a Japanese entity or individual makes certain payments to non-resident individuals or foreign corporations, they are often required to act as a tax collector for the Japanese government by withholding income tax at source. This system, known as

I. Introduction to Permanent Establishment in Japan For foreign corporations engaging in business activities in Japan, understanding the concept of "Permanent Establishment" (PE) is of paramount importance. A PE is a critical threshold in international tax law; its existence in Japan generally subjects a foreign corporation to Japanese