Nagamine & Mishima Accounting Office

Accounting practice since 1989

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Social Security Contributions

Social Security Contributions

We see many foreign companies in Japan accrue social security contribution on a monthly basis. But on the contrary, social insurance office provides contribution statement after service is provided. Which means invoice for social security is always 1 month behind. Due to such cultural unique situation in Japan, many companies, unless public, will recognize contribution on cash basis.

Under income tax purposes, expense is not deductible unless contractual obligation confirmation between the 2 parties has been made in a form of invoice for example. As a result if you have accrued bonus and its social insurance, regardless of how the bonus is treated, the accrued social insurance portion is not subject to deduction for income tax purposes.

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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.