Hey everyone, I’m really grateful for all the tax insights I’ve gained from this community! I’m currently in Japan on a business management visa and am classified as a Non-Permanent Resident (NPR). I run a company here and another one back in my home country (it’s a limited liability company and I’m the sole investor, 100% shareholder). Essentially, I’m managing two companies with nearly identical operations – one serves local clients in my home country, and the other caters to international clients from Japan.
Right now, each company pays taxes in its respective country. However, I’ve read in the forums that because my company back home also needs a lot of my input for decisions and management from myself, does that mean its income might also be subject to corporate tax in Japan? To avoid that, do I need to step down from my own company and appoint someone else to run it, then have my Japanese company contract me for management? Or could my Japanese company just invoice my home country’s company monthly for management fees, which would mean I wouldn’t need to step down?
Alternatively, even if I’m not a shareholder and don’t own the company, but am involved in significant management under a contract, would my home country’s company still need to pay taxes in Japan?
Or it is can’t be avoided whatever you do if you have a siginifciant impact on that company?
Thank you!
by maikeei2312