Software & Related Costs

Considering the fact that most employees use devices and equipments which connect to various networks, it is not surprising that tax auditors see software related transaction as an area to be challenged during the audit. Software transaction can be itemized in general as following items.

1 Purchase Expense
2 Installation Fees
3 Customizing Fees
4 Data Conversion Fees
5 Employee Training Fees
6 License Fee
7 Debugging Fee

You should observe your invoice carefully with the tax accountant so that appropriate tax filing can be made without mistake. Is the scope of software purchase recognized correctly? Are all expenses deductible recognized?

You do not need to follow Japan tax code depreciation but you will need to adjust accordingly during the tax returns if you chose to depreciate in a different manner.