Nagamine & Mishima Accounting Office

Accounting practice since 1989

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Commisions (Transactions outside Japan)

Commisions (Transactions outside Japan)

When making commission payments to non-Japanese entity or individuals overseas, you will need to ask the following questions regarding such commission.

1. Is the commission subject to withholding income tax?
2. Will it be subject to withholding for special reconstruction income tax?
3. Is the tax treaty applicable?

In case of intercompany commission, executed signed agreement must be in place. And to make sure of the following,

1. Actual transaction is made in accordance with the intercompany agreement
2. Proof of transaction
3. Logical explanation for the transaction amount

There are incidents when commission transaction expands to transfer pricing issues. Relevant transfer pricing documentation will be necessary in these circumstances.

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People are Talking

  • “We are Japanese company that imports and sells ice cream of Glacio, Belgium Company. We already have a ten-years of relationship with N & M.

    We are helped a lot not just for their daily accurate accounting, but for their fast and exact response to our company in Japan that is also extended to local office in Belgium.

    In addition to that, as their staffs always handle and consult our accounting or legal matters positively, N & M is a very reliable accounting office.”

    Ryuji Nozaki

    Glacio Ice Cream Japan K.K.