Doing business in Japan:
Tax and legal support for multinational companies

People Advisory Services

The pace of change has accelerated, and organizations are in a continuous state of transformation. Economic headwinds, geopolitical uncertainty and the race for talent require strategies that protect and grow the capabilities of the workforce of the future.
EY People Advisory Services help organizations to design a market-competitive total rewards strategy; solve immigration challenges to enable safer, compliant, cross-border work; advise on innovative flexible work arrangements and wellness programs; ensure organizations can run workforce mobility programs across the globe while minimizing risk and maximizing value; and reimagine the HR function so that workforces benefit from the best experience from day one.

Global Mobility Tax 

• Mobility policy & program design
  We provide tax-led design, review, and governance of global mobility frameworks, including international assignment policies, secondment arrangements, overseas employment contracts, and international business traveller (IBT) programs, structured to align with your organization's risk tolerance and talent strategy.
  
  
• Global Mobility Tax Compliance
  End-to-end Japanese individual income tax compliance, including annual tax filings, double taxation relief and treaty position management, coordinated with seamless overseas compliance support through the global EY network of mobility tax professionals.
  
  
• Assignment cost & employment tax advisory
  Strategic advisory on assignment cost management, compensation equalization, tax gross-up methodologies, employer withholding obligations and the mitigation of permanent establishment (PE) risks and other cross-border employment tax exposures.
  
  
• Equity, executive & rewards taxation
  We provide cross-border tax advisory covering global equity compensation plans, long-term incentive programs (LTIPs), retirement and pension arrangements, and executive and director remuneration, designed to optimize tax outcomes across multiple jurisdictions.
   

• Social security coordination
  Professional guidance on international social security obligations, including planning, compliance, and the procurement of certificates of coverage, delivered in coordination with EY's worldwide network of social security professionals.
   

Immigration

As part of Global Talent Management, Immigration Services play a vital role in helping our inbound clients with their global mobility plans and operations.

Seamlessly and efficiently deploying talent across borders is a competitive advantage for our clients. In today’s environment, it is even more complex and challenging to get right when the first step is immigration. At EY Japan, our Immigration team supports you in taking that first step.
We offer one-stop immigration services, bringing together consulting skills and knowledge of immigration compliance, with experience in Japanese inbound visa applications, work and residence permits, extensions and renewals, and short-term business traveler mobility.

Our integrated immigration services include:

• Compliance
  Visa applications, work permits, residence permits, extensions, short term business traveler mobility and diagnostic review of immigration compliance.
  
  
• Consulting
  Providing strategic advice and supporting the organization in any negotiations with immigration authorities, training and support for in-house departments and advising highly skilled employees on nationality matters.
  
  
• Coordination
  Customized outsourcing of immigration and global account management.
  
  
• Sponsorship
  Supporting the organization in sponsoring overseas nationals to work in their business.
  
  
• Legal
  Representing the organization on sponsorships and visa refusals and cancellations and appeals to the courts or competent authorities.

In recent years, issues related to managing indirect taxes — such as Japan’s consumption tax (JCT), customs and excise duties — have risen up the corporate agenda. Knowing the indirect tax rules for your business operations and applying them correctly are key to avoiding assessments, penalties and goods blocked at airports, ports, borders, etc.

Taxpayers and tax administrators do not always agree about the rules. Complex local legislation, evolving business models and widely different compliance obligations in different jurisdictions add to the risk of disagreements.

Learn more about our Indirect Tax colleagues:

Yumi Haraoka 
Chikara Okada

Consumption Tax

Our Consumption Tax team consults on, assists with and helps implement indirect taxes throughout the tax life cycle, including planning, risk management, systems and automation, compliance, and controversy. We help our inbound clients to meet their business goals around the world.

Customs & Global Trade

Global trade is facing unprecedented disruptions as escalating tariff tensions, political unpredictability, protectionist policies, and regulatory uncertainty challenge established business models and trade relationships.
This moment represents a unique transformative era for international trade. Technological advances are enabling innovative business models that leverage data and insights. EY professionals can help you build an integrated approach by:

• Shaping proactive responses to evolving global tariffs and trading relationships
• Reducing costs, risks, and delays within your trade network
• Enhancing decision-making through advanced data analytics
• Reimagining your supply chain operating model for resilience and agility

Our Business Outsourcing team is composed of business partners across the following specialist areas: Accounting, Compliance and Reporting (ACR), Tax Technology and Transformation (TTT) and Interim Professionals. Each team brings the skills and knowledge to deliver tailored solutions that meet your business needs.

Business partners/ACR

Demand for outsourcing services is growing each year against the backdrop of a rapidly changing business environment and chronic labor shortages. EY Business Partner Co., Ltd. has assembled a team of experienced professionals in bookkeeping, accounting, payroll and social insurance services to provide outsourcing services for both foreign and domestic clients across numerous sectors and industries.

Tax Technology and Transformation (TTT)

We improve the operational effectiveness of the tax function in Japan by understanding our client’s situation, challenges and objectives. Then we plan, design and implement an effective tax process and supporting technology to optimize their tax operations in Japan.

We typically begin by conducting a thorough tax process assessment, followed by an in-depth review of our clients’ tax data. From there, we focus on transforming the tax process, creating a business case by identifying and estimating the current efforts and costs associated with our clients’ tax operations. We then compare these with the potential reductions in effort and cost that can be achieved through an optimized tax process, supported by advanced technology. This allows us to estimate the return on investment (ROI) and the timeline for cost recovery, providing a strong foundation for a business case.

Next, we collaborate with our clients’ global, regional, and local tax teams, as well as other key stakeholders, to implement or optimize tax process with the necessary technology. Our goal is to enhance tax operations in Japan, aligning them with global and regional tax processes and reporting structures for streamlined efficiency and compliance.

Find out more about our Tax, Technology & Transformation team:

Rieko Ueda
Kimiya Yamaguchi

Interim professionals

Japan is increasingly exposed to clear economic security risks due to a shrinking labor force caused by a declining birthrate and aging population. While it is becoming more difficult for companies to acquire the in-demand skills they need to compete in the global economy, employee engagement indices are at record lows.

Our Interim Professionals team meets the needs of our clients by introducing them to experienced professionals. We believe that the future of work will shift to a project-based, skills-oriented format. As a skills-based organization, we leverage technology to deliver value to our clients, bringing together the power of people, technology and innovation to drive business transformation.

Interim Professionals is a pioneer and strategist paving the way for professionals, aiming to build a better society by connecting Japan's workforce and clients to a next-generation talent platform.

To find out more about our Interim Professionals team, please visit the following link:
Interim professionals

Our Law team provides our inbound clients with the detailed guidance that they need to navigate the increasingly complex legal environment of the Japanese economy.

Our lawyers understand complex tax, regulatory and commercial law, both internationally and in Japan. With our multidisciplinary, one-stop shop approach, we help reduce the gap between business advisors and legal counsel, increasing efficiency and speed to market while reducing costs.