Professional advice on taxation should be sought and major international accounting companies operate in Japan and have English-speaking staff. A ten per cent consumption tax is levied on all purchases in Japan, excluding food and non-alcoholic drinks (which are taxed at eight per cent). Some hotels charge eight to 10 per cent service tax on accommodation.

Businesses operating in Japan will be subject to a range of taxes including:

  • corporate tax
  • income tax
  • withholding tax
  • local tax
  • residents tax

Liquor taxes, expressed in specific terms per quantity, are levied on beverages, whether imported or domestically produced.

Excise tax is levied on tobacco imports.