ABOUT
HAYASAKA TAX ACCOUNTANTS' OFFICE
Hayasaka Tax Accountants` office is committed to the high standard & quality of our Tax Advisory services. This commitment is demonstrated through our policies and procedures to ensure that all the financial reporting is compiled on the timely basis and on the precise manner.
FOR CORPORATE BUSINESSES
Our Office offers a wide range of fully integrated services to our business and personal clients.
We have listed the services with a brief description.
Financial Audit and Reporting
Our Office conducts on-site audit with our highly experienced and skilled staffs in order to provide guidance on proper bookkeeping and monitor business activities for our clients` best interest.
We also assist our clients in the compilation work. Our highly skilled professionals will generate financial statements and tax returns for submission to the tax authorities in a timely and accurate manner.
Upon request by a client, the following tasks can be handled by our office:
- Cash Journals,
- Pay Slips,
- Salary Ledgers,
- Monthly Trial Balances,
- General Ledgers
- Income Statements/Balance Sheets.
For effectiveness and efficiency of the business performance, we review the internal process and introduce Accounting Software in order to improve the end results of our clients where necessary and relevant.
Tax Advisory and Filing
Our Office helps business manage tax concerns more effectively in what has become a very complicated environment. Our tax advice aims to help business achieve its growth potential and to mitigate risks.
Our expertise in Tax Advisory/Filing covers:
- Corporate/Income/Consumption/Local Taxes
- Representation before National/Prefectural or other Tax authorities
- Other Tax planning
We keep current with tax strategies and changes in tax legislation in order to fulfil regulatory requirements accurately and timely.
Tax Dispute Resolution
Our Office offers resolution service by highly skilled professional who have a deep understanding of Tax inspection and an extensive record of successful client resolutions.
In addition, we undertake negotiations and maintain a good relationship with the tax authorities if a tax issue arises.
Tax Consultation: Inheritant/Gift Tax(including Charitable Donation Planning)
Upon Succession, it is important to evaluate your estate properly and to consider relevant deductions for the purpose of reducing the tax.
Our Office offer opportunities to re-examine key accounting implications, valuation techniques and other relevant considerations for the inheritant tax saving. We assist and guide the entire process of transferring the assets of the deceased beneficiaries and/or surviving spouse.
Second Opinion
Getting a Second Opinion is always recommended. Overpaid tax can result from Overlooked Deductions, Application of Non-Current Tax Laws, or Simple Human Errors.
Our Office issues a Second Opinion and Tax Reduction Report on your Personal or Business Income Tax returns through a comprehensive review by certified Tax Accountant in tax preparation and consultation.
Management and Strategy Consulting Services
Our Office delivers measurable outcome through helping our clients find the efficiencies and strategic solutions. In helping our clients for future growth, we undertake the following tasks:
- Preparing Funding Projection Model
- Introducing/Selecting Business Loans available for your companies
- Assisting Business Continuity Plan
- Advising Growth Development
- Initiating Business Development Strategies/Activities
- Implementing Better Quality Management System
Other Services
*Our office provides system consultation services for a business that aims to improve Payroll Processing.*
*Our Office functions as Insurance and nonlife insurance agency.
* Cost estimation available
FOR NON-PROFITS (NPO, Foundation, Association, etc.)
Our Office provides comprehensive financial management/consultation to NPO, Associations, Foundations, etc. Our experiences in handling their accounting and taxation matters go back way before the enactment of NPO Law in 1998.
Consultation can be handled via emails, skype, etc. anywhere in Japan (services available in Japanese, English, and Chinese).
Financial Audit and Reporting
Our Office conducts on-site audit with our highly experienced and skilled staffs in order to provide guidance on proper bookkeeping and monitor business activities for our clients` best interest.
We also assist our clients in the compilation work in accordance with standards/regulations for NPOs, Associations, Foundations, etc. Our highly skilled professionals will generate financial statements and tax returns for submission to the tax authorities in a timely and accurate manner.
Upon request by a client, the following tasks can be handled by our office:
- Cash Journals,
- Pay Slips,
- Salary Ledgers,
- Monthly Trial Balances,
- General Ledgers
- Income Statements/Balance Sheets.
For effectiveness and efficiency of the business performance, we review the internal process and introduce Accounting Software in order to improve the end results of our clients where necessary and relevant.
Tax Advisory and Filing
Identifying profit making activities in the accounting books is vital in financial and corporate tax reporting for NPO/Associates/Foundations.
Our Office is well-known for its expertise in complying with Non-Profit regulations yet saving taxes for business income from Profit-Making activities (Shueki-Jigyo). We also use our expertise in consumption tax return in consideration of specified income (Tokutei-Shunyu).
Our expertise in Tax Advisory/Filing covers:
- Corporate/Income/Consumption/Local Taxes
- Representation before National/Prefectural or other Tax authorities
- Other Tax planning
We keep current with tax strategies and changes in tax legislation in order to fulfil regulatory requirements accurately and timely.
Tax Dispute Resolution
Our office offers resolution service by highly skilled professional who have a deep understanding of Tax inspection and an extensive record of successful client resolutions.
In addition, we undertake negotiations and maintain a good relationship with the tax authorities if a tax issue arises.
General Consultation
As a group of specialists in NPO Accounting and other general matters, Hayasaka Office provides the advice best suited for your business plan/target.
General consultation for Incorporated NPO, General Association, Foundations and Public Interest Corporations is available to assist you from Business Start-Up to Tax-Exempt Status Approval (Nintei, Koeki, etc).
For Details, please refer to Hayasaka Administrative Scrivener`s Office page.
Second Opinion
Our office offers attestation services and issue a second opinion, where necessary, on accounting and taxation matters for NPOs and public companies, taking corrective measures as required.
Incorporating Non-Profit Organizations(ex. NPO, Associations, Foundations)
Our office has extensive experiences in incorporating Non-Profit Organizations (NPO), General Incorporated Associations, General Incorporated Foundations, and etc., NATIONWIDE.
Tax Benefit Status Application
Are you seeking Nintei NPO status or Koeki Foundation Status for the purpose of Tax Benefit?
Our Office has experiences over 40 "certified (Nintei)" Non-Profit organization NATIONWIDE since 1999. We are also experienced with applying for Koeki Foundation status to Cabinet Office and Prefectural Offices.
For Details, please refer to Hayasaka Administrative Scrivener`s Office page.
Hayasaka Administrative Scrivener's Office (ASO)
ASO offers you variety of services to prepare and file documents related to rights and liabilities to the governments.
Over years of significant experiences, we specialize in and proud of providing the following services:
Incorporation of Ltd., LLC, LLP, NPO
- Preparation of application form for approval and witness for actual verification (comprehensive service)
- On top of incorporating corporate businesses, preparation of application for corporations that are not companies (NPOs, Associations, and Foundations)*
*Please see Appendix 1
Application for approval as NINTEI NPO
NINTEI NPO, NPO with Provisional Approval (Kari Nintei), Specified NPO ordinance by different prefectures.
- Prior inspection of documents for approval or provisional approval
- Preparation of application form for Specified NPO ordinance and witness for actual verification
(comprehensive service) - Preparation of application form for Provisional Approval (Kari Nintei) as NPO and witness for actual verification (comprehensive service)
Application for approval as a Public Interest (Koeki) Foundation
- Preparation of application for approval as a Public Interest (Koeki) Foundation for special civil-law corporations, consultation on general transfer of permission and preparation of other relevant documents
Our Office provides an estimate based on the amount of work.
Consulting services
- Consultation on how to apply and obtain Public Support Fund/Aid for Non-Profits
- Consultation on operation of Non-Profit Corporation
- Preparation of revised draft for the articles of incorporation
- Consultation on application for subsidies, grants and application proxy
- Other consulting services related to Non-Profits
Appendix 1Corporations that are not companies: NPOs, Associations, Foundations
Besides companies, there are a few corporate structures in Japan which are designed primarily (but not exclusively) for non-profit ventures.
- Associations (Shadan Hojin), which are based on membership. Associations are structured similarly to ordinary companies, with members equivalent to shareholders, and directors equivalent to company directors.
- Foundations (Zaidan Hojin), which are based on a pool of assets, similar to trusts in common law countries. The founders of the foundation, i.e. the people who contribute the assets for it, can decide what its structure will be and nominate its initial set of managers, but are completely detached from the foundation after that point (except to the extent that they remain as directors or trustees).
- NPO corporations (Tokutei Heir Matsudo Hojin or NPO Hojin), a variant of associations intended solely for non-profit, non-religious, and non-political activities. These were introduced as part of a major legal overhaul of this field in 2006, and are still rare in comparison to foundations and associations.
Educational corporations (Gakko Hojin), Religious corporations (Shukyo Hojin), Medical corporations (Iryo Hojin), and Social Welfare corporations (Shakai Fukushi Hojin) are all variants of associations and foundations that are approved by various government ministries.
Until 2006, incorporating associations and foundations were limited to non-profit ventures and had to go through an approval process led by the government ministry overseeing their field. It is now possible to set up an association or foundation as easily as setting up a company, and to operate a completely for-profit business through it, which will be taxed more or less exactly as it would be taxed in a company. Associations and foundations with no official public-benefit or non-profit recognition are referred to as "Ordinary" (Ippan) in their corporate titles.
It usually makes more sense to set up a for-profit business as a company, mainly because companies can pay dividends whereas associations and foundations cannot. That said, some businesses cannot be set up as companies: for instance, hospitals and clinics must be set up as sole proprietorships, associations or foundations ultimately managed by a doctor. There may also be reputational benefits in calling a business an "association" or "foundation" rather than a "company."
| Association | Foundation | NPO corporation | |
|---|---|---|---|
| Name | Must include the word "association" (Ippan/Koeki/Hieiri Shadan Hojin) | Must include the word "Foundation" (Ippan/Koeki Zaidan Hojin) | Must include the words "Specified Non-Profit Activity corporation" (Tokutei Hieiri Katsudo Hojin) |
| Purposes | May be for profit or non-profit. | May be for profit or non-profit. | Must be in enumerated non-profit fields and cannot be religious or political in nature. |
| Capital | No minimum capital. | At least 3 million yen must be contributed initially and maintained throughout the life of the foundation. | No minimum capital. |
| Number of Members | At least 2 | None | At least 10 |
| Governance | At least 1 director (Riji) who is not a member. If the association has assets of 20 billion yen or more, it must have at least 3 directors (Riji), at least 1 auditor (Kanji), and at least 1 accounting auditor (Kaikei Kansanin). | At least 3 directors (Riji), at least 1 auditor (Kanji), and at least 3 trustees (Hyogiin). The board of trustees elects and supervises the directors and auditors. The trustees can be chosen by just about any method but are usually chosen by the other trustees when a vacancy arises, or by a special nominating committee. | At least three directors (Riji) and at least one auditor (Kanji). |
| Procedure | Submit notarized articles of incorporation with local Legal Affairs Bureau. Registration takes 1 to 4 weeks. | Submit notarized articles of incorporation with local Legal Affairs Bureau. Registration takes 1 to 4 weeks. | Submit articles of incorporation, operating plan, and various other documents with local prefectural government. If NPO will have offices in more than one prefecture, with the Cabinet Office. Approval takes 5 to 6 months. |
| Setup cost | Around 110,000 yen for notarization fees and stamp taxes. | Around 110,000 yen for notarization fees and stamp taxes. | No notarization fees or stamp taxes, so theoretically free if no outside professionals are used. |
Getting tax-deductible status
In order to make donations tax-deductible, an association or foundation must file for public-benefit corporation (Koeki Hojin) status with Cabinet Office or Prefectural Offices. This requires the primary purpose(s) of the corporation to be "a business of arts, crafts, charity, or otherwise related to the public benefit, and contributing to the promotion of benefits for multiple and unspecified people." Public-benefit corporations are also exempt from corporate taxes for their business in the public benefit.
An association t hat does not qualify as a public-benefit corporation may qualify as non-profit (Hieiri-gata) and be exempt from corporate taxes, by showing that business is not for profit, or is for the mutual benefit of its members. There are various operational and structural criteria to meet for either of these exemptions. However, if a public-benefit corporation or non-profit association includes a profit making activity of some kind (manufacturing and sale of goods, publishing, etc.), business will be subject to corporate taxes.
Public-benefit and non-profit corporations may include the "public benefit" or "non-profit" indicators in their corporate name, to differentiate them from "ordinary" corporations.
Flow of Incorporating Non-Profits in Japan
- STEP1
- Un-Incorporated
- Tax Consulting Accounting Consulting
- STEP2
- Incorporation Consulting + Docum entation Application
- NPO Corporation(Without Tax Benefits)
- IPPAN ZAIDAN(Foundation) IPPAN SHADAN(Association)(General)(Without Tax Benefits)
- Tax Benefits Consultation + Docum entation Application
- 公益認定 認定、仮認定
- STEP3
- *NINTEI NPO Corporation(Temporary NINTEI)
- *KOEKI HOUJIN(SHADAN HOJIN, ZAIDAN HOJIN) Public Benefit Association Foundation
- Tax Benefits Status Level