Japan is located in Northeast Asia between the North Pacific Ocean and the Sea of Japan and has a territory of 377,873 square kilometers. Japan borders China, North Korea, South Korea and Russia and has access to the Yellow Sea, to the Sea of Japan and to the East China Sea, to the Philippine Sea, to the Sea of Okhotsk as well as to the Pacific Ocean. The capital city of Japan is Tokyo, the largest city and the location of key government institutions. Japan has a population of 126 million people.
Corporate taxation, VAT taxation, Personal taxation
- Corporate income tax - 23,2% + local income taxes, effective tax rate reaches 31% to 35%
- Dividend withholding tax - 20,42%
- Interest withholding tax - 15.315%
- Royalties withholding tax - 20,42%
- Capital gains tax - 23,2% + local income taxes, effective tax rate reaches 31% to 35%
- VAT - Standard tax rate 10% or the reduced rate of 8% or exempt/exempt with credit
- Personal income tax - from 5% up to 45% + local income taxes.
The following are the most common types of companies to incorporate a company in Japan as:
- Limited liability company (Kabushiki Kaisha)
- Public limited company (Godo Kaisha)
- General partnership (Nin i Kumiai)
- Limited partnership (Toshi Jigyo Yugensekinin Kumiai)
- Limited liability partnership (Yugen Sekinin Jigyo Kumiai)
Official currency of Japan is Japanese yen (JPY).
In absence of substantial mineral reserves Japan has long depended on the import of energy resources and materials. The growth of Japanese economy in the second half of the 20th century and in the 21st century is based on the industrial development. Today Japan is the global leader in the production of electronics, electrical equipment, cars, ships, machine tools, optical and high-precision equipment, machinery and chemical materials. Tertiary sector is a significant part of the state GDP.
International trade contributes largely to the economy of Japan and amounts to 16% of the state GDP. Primary exports of Japan are cars, electronics, machinery and industrial goods. Key trading partners of Japan are the US, China and South Korea.
The GDP of Japan grew by 1,62% in 2021 and amounted to USD 4.93 trillion.