• • Chongqing
  • Hong Kong
  • Indonesia
  • Japan
  • Malaysia
  • Philippines
  • Shanghai
  • Singapore
  • Taiwan
  • Vietnam

Tax Accountant System

In Japan, most corporations—except for certain ones (listed companies, companies with capital of 500 million yen or more, or companies with liabilities of 20 billion yen or more)—do not require audits by certified public accountants. The main reason is that accounting procedures are strictly regulated by tax law, and almost all companies follow accounting practices based on tax law. Therefore, tax accountants, who are experts in tax law, are necessary.

1. Legal Positioning

• Regulation by the Tax Accountant Act
  Tax accountants are “experts in tax matters” who, in an independent and impartial position, respond to the trust of taxpayers and are tasked with the proper fulfillment of tax obligations as stipulated by tax laws, based on the principles of the self-assessment tax system (Tax Accountant Act, Article 1).
• Exclusive Duties
  Tax accountants have the exclusive right to perform three types of work: tax representation, preparation of tax documents, and tax consultation. Only those with a tax accountant qualification can perform these duties, and it is prohibited by law for unqualified persons to do so.
• Qualification Requirements
  Tax accountant qualification can be obtained by passing the tax accountant examination or by meeting certain requirements (such as being a lawyer or certified public accountant). After obtaining the qualification, registration with the Japan Federation of Certified Public Tax Accountants’ Associations is required.

2. Social Significance and Mission

• Public Mission
  Tax accountants aim to assist taxpayers in properly fulfilling their tax obligations and contribute to the smooth operation of the self-assessment tax system. Their existence helps protect taxpayers’ rights and contributes to the soundness of national finances.
• Neutrality and Reliability
  Tax accountants act as agents for taxpayers, but are required by law to perform their duties in a neutral and fair manner.

3. Roles of Tax Accountants

• Tax Representation
  Acting on behalf of taxpayers in filing, applying, and appealing to tax offices.
• Preparation of Tax Documents
  Preparing tax returns for income tax, corporate tax, consumption tax, etc.
• Tax Consultation
  Providing advice on tax-related questions and concerns.
• Business Support and Social Contribution
  Supporting the preparation of accounting books, business consulting, inheritance planning, and contributing to local communities in various fields.

Tax Authorities’ Structure and Regional Disparities

In Japan, tax office staff are transferred at intervals of at least one year and at most three years. As a result, there are no staff members who work at the same tax office for more than three years (excluding part-time workers, drivers, and other simple tasks). This system prevents the formation of personal relationships between taxpayers, tax accountants, and tax office staff, thereby helping to prevent fraud. Additionally, since the tax system is uniformly implemented throughout Japan, there are no regional differences, and tax accountants in any region can handle all tax matters nationwide.

Collaboration with Other Nationally Certified Professionals

Japan has multiple national qualifications, and the services that can be provided are defined by law. By placing orders with our partnered national qualification holders, we are able to offer one-stop services through our company.

Examples:

• Registration… Judicial Scrivener
• Licenses & Visas… Administrative Scrivener
• Legal Affairs… Lawyer
• Real Estate Appraisal… Real Estate Appraiser
• Statutory Audit… Certified Public Accountant