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About Donald Nordeng
Expertise
I run a site dedicated to providing information on doing business in Japan. We provide consulting services for those who are exporting to Japan or who want to open an office in Japan.

Experience
I have lived in Japan for 20 years, and have been in business for 19 years. I am president of Ecocert-QAI Japan Ltd., a Japanese company that is wholly owned by foreign interests. I also run a consulting business called JapanExperts. We provide management training and consulting services.
 
   

You are here:  Experts > Business > Global Business > International Business > Japanese Business owned by an American

International Business - Japanese Business owned by an American


Expert: Donald Nordeng - 8/18/2008

Question
I've incorporated a business in Japan, but I'm an American citizen (I have residency in Japan).  

My question is, will I have to pay any American income tax (or any American tax for that matter) on my Japanese company?

I'm aware that I'll have to pay tax on the salary I pay myself from my company, but that should be covered in the Foreign Earned Income Exclusion tax provision.

Is this something you can provide information on?  Thanks so much for the time!

Answer
Dear Brian,

All American's have to file income tax.  So you will pay income tax in Japan and the U.S. if you are beyond the income exclusion.

As far as corporate tax, you only pay corporate tax in Japan.  Please check the U.S. embassy website:

http://tokyo.usembassy.gov/e/acs/tacs-7126b.html

I would be happy to introduce you to a good tax accountant in Tokyo for your business.

Best regards,


Donald Nordeng
www.japanexperts.com

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