Tax Accountant in Japan: 2025 Guide for Foreigners & SMEs

Paying taxes is an unfortunate obligation, but it’s something we all have to carry out and understand. With the cultural and language barriers in Japan, taxing can become even more daunting than it already is. However, for those looking for an accounting firm in Japan and employed foreigners who think they need an accountant but are unsure, this ultimate guide to a Tax Accountant in Japan is tailored to address your specific needs.

Do You Actually Need a Tax Accountant in Japan?

If you’re a salaried employee whose employer handles year-end tax adjustments, you likely don’t. But if you’re self-employed, run a business, earn overseas income, deal with complex deductions, or need to comply with Japan’s new qualified invoice system, a tax accountant can be essential.

Whether you’re filing taxes on your own or considering professional help, you might wonder what tax accountants in Japan actually do and what services are available. 

This guide covers everything you need to know to understand their role and how they can support your business.

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The ‘Big 3’ types of taxes in Japan

Before delving into the accounting details, it’s essential to first understand the three major types of taxes that form the pillars of the Tax System in Japan:

1. Consumption Tax:
Japan’s version of VAT, currently set at 10% (8% for some food and drink items), applies to both individuals and corporations. Businesses with over ¥10 million in taxable sales (two years prior) are generally required to register and file. 

Filing Frequency: Annual or quarterly

• The Qualified Invoice System is now fully in effect. Only businesses with a valid T-Number can issue invoices that allow clients to claim input tax credits.
• Transitional input credits are limited to 80% (dropping to 50% in 2026) for purchases from non-registered vendors.
• While electronic invoicing isn’t yet mandatory, it’s strongly encouraged under the Peppol Japan e-invoicing standard for digital efficiency and compliance.
• T-Number registration is increasingly expected by clients, even for smaller businesses under the sales threshold.

Check out our article on the New Invoice System in Japan. 

2. Individual Tax: Applies to freelancers, self-employed individuals, and certain salaried employees who have additional income sources or are not covered by company tax withholding.

Japan applies a progressive tax structure ranging from 5% to 45%, with the top bracket applying to annual income above ¥40 million.

As of 2025, the basic income deduction has increased to ¥580,000 for individuals earning under ¥23.5 million. Income caps for spouse, dependent, and single-parent deductions have also been raised by ¥100,000. A new special deduction for dependents aged 19 to 22 has been introduced.
In addition, residents pay a local inhabitant tax, typically around 10% of taxable income, collected by both the municipality and prefecture.

Filing Deadline: March 15 each year (Kakutei Shinkoku / 確定申告)

• The Blue Return deduction allows up to ¥650,000 if you file via e-Tax and maintain digital bookkeeping.
• Smartphone-based e-Tax filing is now possible using My Number-linked certificates (Android rollout first).
• International earners must declare foreign income and crypto assets in more detail.

Learn more about when to incorporate your business from our article Tax Reduction: When to Incorporate Your Business.

3. Corporate Tax: A combination of National Tax and Local Tax. Minimum payment of 70,000 ~80000 Yen (depending on your local government), regardless of profit or loss. 

Corporate income tax rates range between 15% and 23.2%, depending on company size and taxable income. Local enterprise and inhabitant taxes apply on top of the national rate, varying by region.

Larger multinational groups should note that Japan will introduce the Global Minimum Tax framework (QDMTT/UTPR) for fiscal years beginning on or after April 2026, ensuring a minimum effective tax rate in line with international BEPS 2.0 standards.

Filing Deadline: 2 months after fiscal year-end (extensions possible)

• Social insurance and payroll tax reporting are increasingly handled digitally.
• Accurate provisional payments are essential to avoid penalties.
• Global firms may need to assess BEPS 2.0 / Pillar Two implications if they meet thresholds.

Learn exactly how much you’ll need to pay for your company in our guide to corporate tax in Japan.

What is the difference between CPA and Tax Accountant in Japan?

Before finding the right accountant, it’s essential to understand the differences between the Certified Public Accountant (CPA) and the Tax Accountant (TA) in Japan. These two financial roles cater to diverse client profiles and have unique areas of expertise, making it crucial to make an informed choice based on your specific needs. 

CPA in Japan: As specialists serving listed companies, CPAs focus on auditing and attestation. They can also handle Tax Accountant tasks if registered.

Tax Accountant in Japan: Catering to SMEs and sole proprietors, Tax Accountants excel in tax returns and bookkeeping. However, they cannot obtain CPA registration.

Here is a comparison chart : 

Selecting the right accountant is vital for ensuring financial compliance and success. Businesses can choose CPAs for listed companies or Tax Accountants for SMEs and sole proprietors, finding the expertise they need for their specific requirements. In this article, we will be focusing on the Tax Accountant (TA) role in Japan. 

Who needs a tax accountant in Japan?

Not everyone in Japan is required to hire a tax accountant, but many individuals and businesses benefit from doing so, especially with new regulations in place.

The need for a tax accountant depends on your personal situation. If you work for a Japanese employer who calculates your taxes for you, you may not need an accountant. However, having a tax accountant in Japan is advisable especially if you’re self-employed and don’t have the time to sit down and do your taxes for 10 and 20s+ of hours on end. 

A tax professional can be extremely useful if you are one of the people in the list below : 

1. Freelancers, Sole Proprietors, and Side Business Owners

If you’re self-employed or earning income from a side business, you’ll need to file an annual tax return and may qualify for the Blue Return (青色申告). This requires double-entry bookkeeping, properly organized digital records, and timely submission through e-Tax to receive the full ¥650,000 deduction.

As of 2025, staying compliant also means following the Electronic Books Preservation Act (EBPA) and possibly issuing qualified invoices if you exceed ¥10 million in taxable sales. A tax accountant can ensure all these systems are correctly in place.

2. Startup Founders and SME Owners

If you run a corporation or want to set up a company in Japan, you’re faced with different legalities altogether. In this case, a tax accountant in Japan will definitely come in handy. Figuring out the different regulations and procedures by yourself can take up precious time that can otherwise be used to efficiently run your business.

For those operating a KK, GK, or other incorporated structure, the tax burden is more complex. Corporate taxes, consumption tax registration, social insurance filings, and employee payroll all require precise handling. 

Many foreign founders underestimate the time and knowledge required to manage these moving parts, especially under Japan’s Qualified Invoice System and multi-layered tax structure.

Accountants also assist in choosing the right fiscal year, maximizing deductions, and avoiding late filing penalties.

3. Foreigners with International Income or Obligations

Foreign residents earning income abroad (dividends, real estate, or consulting fees) must report this in Japan. U.S. citizens may also have FATCA or FBAR reporting obligations. A bilingual tax accountant can help navigate international tax treaties, avoid double taxation, and ensure both local and overseas filings are properly aligned.

4. Investors and Asset Holders

Even if you’re not running a business, a tax accountant can help optimize capital gains, rental income, or dividend taxes, especially under the expanded NISA system introduced in 2024. If you’re selling property, investing in securities, or holding foreign assets, an accountant ensures everything is declared correctly and that any available deductions are claimed.

5. Companies Purchasing from Non-Registered Invoice Vendors

Under the new invoice system introduced in late 2023, businesses must deal with transitional limits on input tax credits for purchases made from non-registered vendors. In 2025, only 80% of the credit is claimable, which drops to 50% in 2026. A tax accountant helps you manage vendor records and protect your deductions.

6. High Earners and Busy Professionals

Even salaried individuals may benefit from tax advice if they receive bonuses, RSUs, rental income, or consulting fees on the side. A tax accountant can assist with deductions, handle the annual Kakutei Shinkoku (確定申告), and help determine whether incorporating a business would lower your overall tax burden.

According to 2025 EBPA enforcement and e-Tax filing updates : 

With the Electronic Books Preservation Act now fully enforced, all digital invoices and receipts must be stored electronically. Accountants ensure compliance with these recordkeeping standards while assisting clients in navigating e-Tax submissions and Qualified Invoice requirements.

Why hire a tax accountant in Japan

There are a variety of reasons why having a tax accountant in Japan could help you. We’ll list the main three below.

Compliance

Every country has its own set of rules and regulations. Because of unfamiliarity with these Japanese tax requirements, there’s a big risk of making mistakes and incurring potentially heavy penalties when handling tax forms and accounting procedures in Japan. Because of their expert knowledge, a tax accountant in Japan can help you make the best tax plan and schedules to avoid such penalties, and let you keep your peace of mind.

Additionally, if you do not do everything right, you could suddenly be hit with multiple year’s worth of back payments for taxes or other mandatory government-related expenses which can cripple a business. The Japanese government also announces new changes and an accountant can explain the system to you rather than you spending hours figuring it out – for example, the new changes to the invoice retention system that started on January 2024.

Avoid Errors in a Non-English System

Japan’s tax platforms, notifications, and forms are mostly in Japanese. Even with English-friendly accounting software, submissions and government correspondence still require a native-level understanding of legal terminology. A bilingual accountant helps bridge that gap.

Cost Effective

Whether you’re a sole proprietor, self-employed person, or owner of a corporation, you’ll need to review documents and make sure of their plan and record-keeping. If you own a business, you’ll also need to know your financial forecast, so you can always be up-to-date and survive. As you know, this all adds up to more time spent, which also means more money spent. Instead of spending your valuable hours on taxes, have an accountant in Japan help you, so you can save both time and money.

According to Meetsmore Inc., tax accounting expenses grew by 5% from 2022 to 2023, and by an additional 8% from 2023 to 2024. The company analyzed approximately 175,000 tax returns filed through their platform over this period.

Get the Most Out of Tax Reduction

If you’re the owner of a business, you’ll want to get all the benefits you’re entitled to, and a tax accountant can help you get all of them. They will handle all the forms needed, such as the ‘Blue Return’ form (青色申告), which is a form for sole proprietors you can submit two months after your business has been authorized.

If this form is accepted, you can receive up to 650,000 yen deduction to reduce your taxable business income which is great considering most businesses will need some support in their first year. If this form isn’t filled out properly, you run the risk of getting less than you deserve, so have your accountant handle all of it for you, and get the most out of your tax reduction!

Read more about tax reduction on our dedicated page Tax Reduction in Japan.

Currently, the Blue Return system offers a maximum deduction of ¥650,000 for e-Tax filers maintaining digital books under the Electronic Books Preservation Act.

Even among licensed tax accountants in Japan, answers can differ, especially in complex or borderline cases. That’s why having an accountant who understands your specific situation is essential. They’ll guide you through Japan’s layered tax system, help you stay on top of quarterly payments, and prevent surprises when it’s time to file your income tax (確定申告 / kakutei shinkoku) or resident tax.

Beyond compliance, a good accountant can help reduce your tax burden. For example, issuing an end-of-term bonus can lower your corporate tax bill when done correctly. In 2025, staying compliant with the Qualified Invoice System is also critical. Input tax credits are only fully available when purchasing from registered vendors. If not, you can claim only 80 percent this year, dropping to 50 percent in 2026. A tax accountant helps track vendor status and ensures your documentation is complete.

Provisional taxes are another area where businesses often go wrong. Overpaying ties up cash, while underpaying can result in penalties. With proper forecasting, your accountant helps align payments with your actual earnings and avoid unnecessary risk.

There’s no one-size-fits-all solution, but the right advice can help you reduce your tax bill and avoid costly mistakes.

To learn more about the new qualified invoice system in Japan, check out our video on Scaling Your Company channel.

What does a tax Accountant in Japan do?

Now that we’ve discussed who should get a tax accountant and the primary reasons for getting one, let’s talk about what a tax accountant in Japan can do for you in further detail.

Tax Strategy and Advice

Having a tax strategy optimizes your business’ revenue and helps you feel financially secure and independent by having a plan to reduce your taxes. It has to be designed in advance to take advantage of all its benefits. Having a strategic approach to your tax situation can save you money to invest back into your business, stocks, or other investments. A tax accountant in Japan can get a financial evaluation of your situation so you can better understand your position and goals.

Besides guidance in tax strategy, a tax accountant in Japan will also give advice on the best approach to your taxes. Their expert knowledge ensures you that, as you grow over time, so do your personal or business investments.

Government Subsidies

There will be times when you can receive subsidies from the government. A tax accountant can assure you of the proper subsidies available at any moment.

A special subsidy, for example, was approved earlier this year that supported businesses that suffered financial losses due to the Covid-19 pandemic. A tax accountant in Japan can evaluate whether or not you would be eligible for subsidies in Japan.

To learn more about Subsidies in Japan from an expert, check out our startup episode on How to get Government money for your business!

For more information on government subsidies, you can check out the National Tax Agency of Japan. They have an English website that has a lot of information on subsidies and tax systems, including one called the Grace System.

Year-End Tax Filing for Sole-Proprietors and Corporate Businesses

The end of the financial year is a very busy period for businesses and sole proprietors. For non-tax practitioners, it can get quite confusing to deal independently with various deadlines, calculations, adjustments, and application procedures. 

What’s changed in recent years is how you’re expected to file and keep records. 

In 2025, more businesses are required or strongly encouraged to file via e-Tax, especially those applying for the full ¥650,000 Blue Return deduction. The government now enforces stricter standards for digital bookkeeping, particularly under the Electronic Books Preservation Act (EBPA). Paper-based backups alone are no longer enough, supporting documents must be stored digitally in a compliant format.

If you’re a consumption tax filer, your year-end reporting must also align with the Qualified Invoice System. Claiming input tax credits now requires invoice-level documentation from registered vendors. This adds a layer of reconciliation during year-end that many small businesses may overlook if they’re not working with a tax accountant.

For those filing as individuals, a new update allows smartphone filing via My Number-linked certificates, available on Android devices from 2025. This simplifies the process for some, though preparing the necessary calculations and ensuring data accuracy still takes time and knowledge. Digital filing is strongly encouraged to qualify for certain deductions and ensure compliance with EBPA.

Whether you’re filing as a sole proprietor or a corporation, submitting accurate documents, matching invoice records, and maintaining compliant digital systems are now essential. A tax accountant can help review everything before submission to reduce the risk of errors, disqualifications, or missed deductions.

Tax Auditing

Tax audits in Japan typically review the last three to five years and are triggered by inconsistencies in reporting, unusual income shifts, or repeated losses.

In 2025, audits are increasingly focused on digital compliance. Businesses must be able to provide records that meet Electronic Books Preservation Act (EBPA) standards, and accounting software must export data in accepted formats. Auditors are also checking if input tax credits are backed by valid Qualified Invoices, especially under the new invoice system rules where only 80% of credits are allowed from unregistered vendors.

Those earning foreign income or holding crypto assets may face additional scrutiny, as international data sharing has expanded.

Working with a tax accountant helps ensure your records are audit-ready and compliant with Japan’s evolving digital standards.

International Tax Support

A tax accountant in Japan can make international endeavors a lot easier by offering international tax consulting. Whether you’re already a foreign company or looking to expand to other foreign countries, you’ll definitely want the advice of a tax accountant. These services include “Withholding tax treatment”, “Permanent Establishment (PE)”, “Antitax Haven Measure (CFC rules)”, “Foreign Dividend Exception Systems”, and “Tax Treaties”. You would have to find a firm that supports international tax as most Japanese firms do not. 

Multinational companies should prepare for the implementation of the global minimum tax (BEPS 2.0 / Pillar Two), which begins applying in Japan from April 2026.

How a Tax Accountant Can Help with Post-Incorporation Filing in Japan

After incorporating a company in Japan, businesses face a multitude of mandatory filings and registrations that are essential for legal compliance and smooth operation. A tax accountant plays a crucial role in navigating these complex requirements, making sure that all necessary documentation is correctly prepared and submitted on time.

Tax Office Filings

One of the primary responsibilities of a tax accountant is managing filings with the tax office. This includes submitting the Corporate Establishment Notification (法人設立届出書), which must be filed shortly after incorporation. The accountant also handles applications related to the Blue Return system (青色申告) , which can offer significant tax benefits, and manages the setup of payroll and withholding tax systems. By ensuring accurate and timely submissions, the accountant helps the company avoid penalties and ensures compliance with Japan’s tax regulations.

Local Tax Filings

In addition to national taxes, businesses in Japan must also register for local taxes with the prefectural and municipal offices. These filings include notifications for corporate inhabitant tax and corporate enterprise tax. A tax accountant ensures that all local tax obligations are met by preparing and submitting the required documentation. They also monitor payment schedules to avoid late fees and interest charges, thereby maintaining the company’s good standing with local tax authorities.

Social Insurance Enrollment

A tax accountant assists with the critical task of enrolling the company in social insurance systems, which include health insurance, employee pension insurance, and worker’s compensation insurance. This involves preparing and submitting detailed forms to the relevant pension offices. The accountant ensures that all employees, including the company president, are properly registered and that contributions are calculated accurately.

Labor Standards and Employment Insurance

Compliance with labor standards and employment insurance regulations is another area where a tax accountant is indispensable. They manage the documentation and reporting related to labor conditions, social insurance status, and employment insurance registration. This includes submitting reports to the Labor Standards Inspection Office and the Public Employment Security Office, confirming that the company adheres to all legal requirements.

Regulatory Compliance

For businesses that require specific licenses and permits, a tax accountant can assist in identifying these needs and managing the application process. This ensures that the business operates within the legal framework and avoids any regulatory pitfalls.

Accounting Contracts

In Japan, accounting services are usually provided under monthly or annual contracts. These agreements typically include bookkeeping, payroll, tax return filings, and support for Blue Return applications, with fees based on company size, monthly transactions, and the scope of services.

As of 2025, more tax accountants are offering digital-first contracts, including cloud-based bookkeeping tools, e-Tax integration, and compliance with the Electronic Books Preservation Act (EBPA). This shift is driven by growing enforcement of digital recordkeeping standards and the Qualified Invoice System.

When choosing a service provider, make sure to clarify:

• Whether their systems comply with e-Tax and invoice requirements.
• If they provide bilingual communication and document support.
• What’s included in monthly fees (e.g., payroll, year-end filings, invoice tracking).
• Whether they support transition between sole proprietor and corporate structures.

Also note that while some smaller firms still offer hourly billing, most reputable tax professionals work on fixed-price packages based on expected volume and filing complexity.

If you’re a growing company, it’s worth asking how the contract scales, can the accountant support you through incorporation, multiple employees, or expansion into other prefectures?

Understanding Accounting Fees in Japan (2025 Update)

Accounting fees in Japan vary based on the scope of work, billing method, and whether the accountant is bilingual or corporate-licensed. In 2025, most firms offer a mix of billing structures to suit different business needs.

Hourly Rates:
For ad-hoc consulting, hourly billing is common. Bilingual accountants typically charge around ¥4,000 to ¥6,000 per hour (roughly $30–40 USD), while specialized or corporate-focused accountants may charge ¥10,000 to ¥20,000 per hour. This is ideal for resolving specific issues, reviewing a contract, or answering tax questions without ongoing service.

Retainer (Monthly) Fees:
A monthly retainer covers a set range of services such as bookkeeping, payroll, and tax filing, and grants ongoing access to support. This is the most practical arrangement for freelancers and businesses with recurring accounting needs. Fees are usually based on monthly transaction volume, staff size, and corporate structure.

Fixed Project Fees:
For one-off tasks like annual tax returns, setting up your company’s accounting system, or handling your first Blue Return filing, a fixed fee is often agreed upfront. This offers clarity on cost and scope for standalone deliverables.

Hybrid Models:
Many accountants offer a mix of fee types, retainer for routine tasks, fixed fees for annual filings, and hourly billing for consultations. This flexibility lets you scale services based on your actual needs. for some services via a fixed price and others on a monthly fee.

Japanese Accounting Software in Japan

Depending on your tax accountant in Japan, a specific accounting software is used in Japan. You may want to check out the following software if you need to provide tax files yourself. The biggest accounting software in Japan are:

Yayoi Kaikei or Yayoi Accounting

Yayoi Accounting is a cloud-based platform popular among freelancers and small businesses. It offers essential functions such as automated bank and credit card data import, tax reporting tools, and basic audit support. While there’s no live or in-person help, email and phone support are available. Its simplicity makes it a good choice for those starting out. 

Money Forward (MF) Cloud Accounting

Money Forward (MF)’s Cloud Accounting is a software that automates troublesome tasks similar to Yayoi Accounting. Money Forward automates daily accounting tasks by syncing with bank accounts, e-commerce platforms, and business tools. In addition to bookkeeping, it offers integrated services like payroll, invoicing, and expense tracking, making it ideal for growing businesses looking to centralize their operations.

Money Forward also offers a prepaid business credit card that links directly with the platform, helping separate business and personal expenses, especially useful for clean recordkeeping. s.

The only downside of this card is that they do not provide it to US citizens due to FATCA. However, if this does not apply to you check out the Money Forward credit card here.

Freee

Freee is similar to Money Forward in that it connects various services within accounting, and it’s proven a very useful platform for small to medium-sized businesses. It imports credit card and bank data, tracks expenses and invoices, and includes smart alerts for missing data or filing errors, helping users stay compliant and avoid penalties.

English Accounting Software in Japan

Although you will eventually need to attach your financials in Japanese on your tax return, there’s absolutely no need to use Japanese accounting software in Japan to keep your records. Here are some services you can use to keep your tax records in English, which you or your tax accountant should be able to translate for your final tax reports. Please confirm with your tax accountant in Japan if they support non-Japan-made software as many will not use the following software to manage your bookkeeping.

XERO.com

XERO is an Australian software company that markets itself as software for everyday business. They have an easy-to-use interface and offer online courses to introduce cloud accounting software. Much like the Japanese software, XERO automates and takes care of invoices and expenses. In addition to that, they have a mobile app, so you can access your accounts from anywhere, and an unlimited user feature that makes it a winner for larger businesses and well-established small businesses.

Pricing
XERO offers a 30-day trial, after which prices start at $22 per month.

Quickbooks

Quickbooks is another powerful financial management suite. Since it has a strong history, launching its first product in 1983, it’s an industry leader. If you prioritize scalability, optimized organization, and the ability to loop in accountants, this one is the better choice. You can also gain deeper insight into your business’ logistics as it grows. Therefore, it’s advisable for businesses that wish to grow. 

Pricing
Quickbooks offers a 30-day trial, after which prices start at $17 per month. Quickbooks currently has a special offer of 70% off!

Tax Accountant Services in Japan

Now that we’ve covered the basics of why you need a tax accountant in Japan and which services you may want to use, here are the different tiers of accounting firms in Japan so you can figure out which one suits your purposes. 

It is good to keep in mind that most of these tiers will work for smaller companies, but not all of them can handle larger volumes for larger companies. This also means that most, if not all, can receive your financial data, and then provide you with the three basic financial reports (Income Statement, Balance Sheet, and Cash Flow Statement) required for tax filing, however often you desire (monthly, quarterly, yearly). Basic services also include tax filing support. 

Disclaimer: Because of legal reasons, we are unable to include company names in the tiers. We also assume that the accountant or accounting firm you want to work with in Japan is bilingual.

Lower Tier Accounting Services in Japan

Lower-tier firms typically deliver the basics as bookkeeping and annual returns, on a defined scope. They are generally reactive rather than advisory-led, which can work for very small companies or sole proprietors that already know exactly what they need. Expect to manage your own deadlines and provide well-organized records for smooth processing. 

If you’re a sole proprietor or small company, you could opt for this type of service, depending on your needs, budget, and your knowledge, but it could be a risk, as the services are limited ad not as timely as other tiers.

General low-tier elements to consider:

• Pricing and inclusions. Entry bookkeeping often starts around ¥30,000/month + tax. Confirm whether year-end corporate and consumption tax returns are included, since many offices bill these separately or only include one return in a base plan. If excluded, returns can add a separate fee.
• Ad-hoc consulting. When available, consulting is usually hourly. Published bands commonly sit around ¥10,000–¥20,000 per hour, with higher quotes for complex or bilingual matters.
• Service scope and language. Many lower-tier firms focus on domestic filings only, provide limited proactive advice, and may have limited bilingual capacity. If your main contact leaves, continuity can be an issue.
• Software. Expect Japan-first tools by default (freee, Money Forward, Yayoi). If you need Xero/QuickBooks for internal reporting, confirm compatibility before contracting.
• What to double-check before you sign.
• Exactly which filings are in scope (corporate, consumption tax, blue return support) and how year-end fees are calculated.
• Hourly rates and when consulting charges apply.
• Language support and who your day-to-day contact will be.
• Software the firm will use and what they’ll accept from you.

Middle Tier Accounting Services in Japan

Middle-tier firms are a step up in proactivity and advisory quality, often a strong fit for SMEs that need bilingual communication and tailored support without enterprise pricing. Clients commonly move up from lower tier after last-minute tax surprises or communication gaps, seeking steadier guidance and clearer timelines.

The second tier of tax accountants in Japan level up from the first tier significantly in their proactive attitude. They are not yet big firms and will take your issues and questions at heart.

This would probably be the best tier if you are a small business owner, as you’ll get great personally targeted service with lesser risk for a lower price point than a larger tier. 

General middle-tier elements to consider:

• Pricing and scope. Typical monthly fees fall in the ¥75,000 to ¥250,000 range, driven by transaction volume and meeting cadence. Advisory work is often billed at ¥15,000 to ¥25,000 per hour, rising with complexity. Confirm whether corporate and consumption tax returns are bundled or billed separately, since inclusions vary by firm.
• Capabilities. These firms can handle a range of small to mid-size entities, tend to be proactive on questions, and provide bilingual, bicultural support for international situations.
• Compliance support. Expect hands-on help with the qualified invoice system, Blue Return requirements, and electronic books preservation, along with e-Tax filing workflows.
• Software. Japan-native tools are the default, especially freee, Money Forward, and Yayoi. Some firms will also work with Xero or QuickBooks for internal reporting, although support is not universal, so confirm before contracting.

Middle-top Tier Accounting Services in Japan

A little higher level than the middle, but not quite high tier, is the middle-high tier. We put them here because these are mostly global firms, that won’t easily manage smaller companies.

The middle-top tier could be perfect for a medium-sized company that needs timely and effective service.

General middle-top tier elements to consider:

• Pricing and scope. Annual service packages often start around ¥1.2 million, increasing with transaction volume, payroll, and international reporting needs. Monthly retainers usually include bookkeeping, tax filings, and advisory, with additional fees for specialized work such as group reporting or transfer pricing.
• Capabilities. These firms are familiar with both Japanese GAAP and IFRS, handling multi-entity reporting, cross-border transactions, and subsidy applications. They also support compliance with the Qualified Invoice System and Electronic Books Preservation Act.
• Software. Most use Japanese platforms like freee, Money Forward, or Yayoi, though some also support Xero, QuickBooks, or ERP tools for global clients.
• Client fit. Middle-top tier firms are ideal for businesses seeking consistent bilingual communication and international tax coordination without the higher costs of Big 4 firms.

High-Tier Accounting Services in Japan

High-tier firms, including the Big 4 (PwC, Deloitte, EY, KPMG) and global networks like Mazars, Grant Thornton, and BDO, serve large corporations and multinational groups with complex cross-border needs.

If you own a medium to large corporation or are expanding your company abroad, and your budget allows a higher tier accounting firm, high tier could be a good option

General high-tier elements to consider:

• Pricing and scope. Full-service contracts typically start from around ¥2 million per year, with costs rising for audits, transfer pricing, or international structuring.
• Capabilities. These firms offer comprehensive tax, audit, and advisory support, including IFRS and U.S. GAAP reporting, BEPS 2.0 compliance, and global payroll. They maintain high technical standards, secure data systems, and seamless coordination with overseas headquarters.
• Client fit. Best suited for medium to large corporations that require global integration, advanced advisory, and ongoing multinational compliance.

Top Tier Accounting Services in Japan

The top tier is basically the highest tier of a tax accountant in Japan, besides the Big 4, and they’ll also charge slightly less than them. They handle large to very big corporations.

If you own a big corporation and have a very large volume, but don’t want to consider The Big Four in price point or service, then the top tier is perfect

The Big Four

The Big Four deserves its own tier as they are globally grouped under its synonymous category. 

If you have a large budget and your volume is large, you could consider one of the Big Fours

General Big Four elements to consider:

• They have English and international speakers on staff, that can handle everything in your language
• The budget is high, even for consultancy, so you’d need a very high volume like a large corporation to make ends meet

Here are the companies we recommend

LOWER TIER

Match.Points Accounting

MatchPoint Accounting has a team of expert tax accountants under its wing who offer online tax consulting for small to medium-sized businesses under their sister company Zeirishi Online. They focus on the relationship between the company and the manager to provide what they call “life planning”. These online accountant services cost about ¥360,000 per year, but you can schedule a free consultation first.

Services Offered by MatchPoint Accounting

Management and filing for depreciation of fixed assets, ensuring you take full advantage of allowable deductions to minimize taxable income.

Individual and Corporate Tax Returns

Preparation and filing of tax returns for both individuals and corporations, ensuring compliance with all Japanese tax laws and regulations.

Consumption Tax Return

Assistance with the preparation and filing of consumption tax (VAT) returns, helping you navigate the complexities of indirect taxation.

Bookkeeping Services

Professional bookkeeping to maintain accurate and up-to-date financial records, allowing you to focus on your core business activities.

Tax Consulting

Expert advice on tax planning and strategies to optimize your tax position, reduce liabilities, and maximize savings.

Year-End Adjustments

Handling all year-end accounting procedures, including adjustments and closing entries, to ensure your financial statements are accurate and complete.

Depreciation Asset Filing

Contact Match.Points using the link here or the contact form below :

To know more about MatchPoint Accounting’s expertise, take a look at our webinar where we interviewed one of their certified Japanese accountants, Shinpei Wakana. They are also providing a special discount to Scaling Your Company readers/listeners of one month free – make sure to mention our name and the discount.

You can read the follow-up questions to this webinar here: Q&A with a Japanese Tax Accountant

Contact Matchpoint

MIDDLE TIER

QCIQ Consulting

Contact QCIC using the link here or the contact form below :

QCIC is a one-stop company that provides various services for foreign companies in Japan. They offer things like business advice on specific progress in Japan, including audits, industry research, and trend analysis. They also offer Business Process Outsourcing (BPO) services, including accounting, financial management, and taxes. They have expert CPAs, EAs, Licensed Tax Accountants, and FSA/FFAJ Certified Compliance Auditors.

I have introduced multiple friends to QCIC and they have not only fixed problems created by another accountant in Japan but provide proactive accounting support – most Japanese accountants are reactive and wait for you to ask questions outside of the normal bookkeeping and yearly tax return preparation. Tell them Tyson sent you and they will take good care of you.

Contact QCIC

MIDDLE-TOP TIER

weConnect

Contact weConnect using the link here or the contact form below :

weConnect specializes in business Process Outsourcing (BPO) services, including accounting, financial management, payroll, and taxes. They can provide heavy support for corporations setting up and growing a subsidiary in Japan and strong support for corporations based in Japan. They are a solid choice for companies thinking of expanding out of Japan into other markets because they can support both your Japan and international operations.

weConnect also has the capacity to support companies with complete back-office support solutions for corporations Headquartered in Australia, Canada, and the US. For corporations in those countries, weConnect can provide a solid service that would be cheaper than using a domestic firm to handle domestic and international operations.

Contact WeConnect

Tax Tips for Startups in Japan (2025)

Staying compliant with Japan’s evolving tax system is essential for startups aiming to scale efficiently. Below are key tips based on the latest 2025 reforms and best practices for early-stage businesses.

1. Register for the Qualified Invoice System

Ensure your company is registered as a qualified invoice issuer so that clients can claim input tax credits. Unregistered businesses risk losing B2B contracts as transitional credits drop to 50% in 2026. Confirm your accounting tools support the Qualified Invoice System and that all invoices are stored digitally in compliance with current regulations.

2. Maximize Blue Return Benefits

Opt for the Blue Return (青色申告) to access higher deductions, up to ¥650,000 when filing via e-Tax with digital recordkeeping. Paper-only systems no longer qualify for the full deduction if invoices are received electronically. Accurate, digital bookkeeping not only secures tax benefits but also streamlines loan and grant applications.

3. Utilize R&D and SME Tax Incentives

Take advantage of R&D tax credits if your company invests in product development or innovation. Startups and SMEs also enjoy a 15% corporate tax rate on the first ¥8 million of taxable income, a key advantage during the early growth stage.

4. Embrace e-Tax and Digital Recordkeeping

File all tax returns through e-Tax, which now supports smartphone submissions using My Number digital certificates. Compliance with the Electronic Books Preservation Act is mandatory, digital invoices and receipts must be stored electronically, as printing them for storage no longer meets legal standards.

5. Leverage NISA for Tax-Free Growth

Use the New NISA as part of your company or founder investment strategy. It offers up to ¥3.6 million in annual investments (¥18 million lifetime) with permanent tax exemption on dividends and capital gains. This is a valuable tool for personal financial planning and long-term wealth building.

6. Monitor Corporate Tax Changes

Large corporations face a 1% surtax from fiscal years beginning after April 2025, while the 15% SME tax rate remains for the first ¥8 million in profit. For higher-earning SMEs (over ¥1 billion in taxable income), the rate increases to 17%. Stay proactive in planning for these rate shifts to avoid cash flow surprises.

7. Use Cloud-Based Accounting Tools

Adopt local cloud accounting software such as Money Forward, Freee, or Yayoi, all of which support Blue Return filing, invoice compliance, and e-Tax integration. If you operate globally, confirm compatibility with international tools like Xero or QuickBooks.

8. Avoid Common Mistakes

Register for both the Blue Return and invoice system early to prevent losing deductions or business opportunities. Confirm that all vendors are registered invoice issuers before processing payments, and always file taxes on time, penalties for late or incorrect filings can reach 5–15% plus interest.

Tips for Doing your Accounting

Our goal for accounting is to be compliant and prevent future issues while using as minimum time as possible because our time should be spent generating revenue! 

Here are some tips for optimizing your accounting.

Have one or multiple bank accounts

If you are a sole proprietor, separate your personal and business bank accounts & credit cards. Stop wasting time checking back and forth synchronize your business with Japanese accounting software and eliminate unnecessary data entry. You can explore further about bank accounts in Japan through our article on Corporate Bank Account in Japan.

If you are a business owner, consider making different bank accounts for different business models. For example, if I have a digital marketing agency and coaching business, each should have separate bank accounts and credit cards to help you track purchases and expenses more easily.

Work Distribution

I recommend creating a RACI chart and making it very clear who will do what. Here are some examples we clearly defined between myself and my accountant in Japan.

Bookkeeping flow: We have a spreadsheet to list purchases made and we upload receipts to Google Drive and send an email on the 5th of the following month to the bookkeeper. They will input that data into the accounting software.

Employee tax notification: The accountant agreed to submit employee tax documents bi-annually on our behalf.

Accounting Vocabulary in Japanese

A major benefit of having a tax accountant in Japan is not having to deal with forms and procedures in Japanese yourself. However, if you want to know the basics, here are some words you’ll probably want to know.

Do you need an accountant in Japan for personal finance?

In Japan, many individuals and companies are able to submit their taxes without the need for an accountant. The tax law in Japan is relatively straightforward for the average taxpayer, and most people can handle their personal taxes on their own. However, let’s take a look at certain cases where having a tax accountant or CPA in Japan can be incredibly helpful. 

Non-Resident Taxpayers

For non-resident taxpayers, navigating the tax laws in Japan can be more complex. If you are a non-permanent resident or have income from abroad, understanding your tax laws in Japan can be challenging. In such cases, seeking the expertise of an accountant who is familiar with international tax laws can ensure compliance and avoid any potential issues.

Business Owners and Self-Employed Individuals

If you own a business or work as a self-employed individual in Japan, your tax situation can become more intricate. An accountant can assist in properly accounting for business income, expenses, and deductions, ensuring accurate reporting and maximizing tax benefits.

Complex Investments

If you have complex investment portfolios, such as stocks, real estate, or overseas assets, an accountant can provide valuable advice on tax implications and strategies to minimize tax liability.

Retirement Planning

Planning for retirement involves various financial decisions that can have tax implications. An accountant can guide you through tax-efficient retirement strategies and help you make the most of retirement accounts and pensions.

Expats and Dual Citizens

Expatriates and individuals with dual citizenship often have unique tax considerations due to their ties to both Japan and their home country. An accountant experienced in handling expat taxes can help optimize tax planning and ensure compliance with the tax laws of both countries.
While many people may not need an accountant or CPA in Japan for their personal taxes, those in unique financial situations or with complex financial matters can benefit greatly from professional advice and guidance. If you find yourself in any of the above situations or need more personal finance tips and information on tax laws in Japan, you can visit the Retire Japan forum, which is a valuable resource for expats and individuals looking to navigate the financial landscape in Japan.

How can you do taxes as a US citizen in Japan?

Did you know that you can file your taxes as a US citizen living in Japan? The US tax system for expatriates can be complex, but with the right support, you can navigate it effectively. You can utilize software like Expatfile where you can e-file your own expat tax return in a matter of a few minutes. International accountants in Japan such as Dean Yoshimoto can also help you file your US taxes accurately and in compliance with the IRS regulation and tax law in Japan. Discover expert insights and practical tips on handling US taxes while living in Japan in this informative podcast by RetireJapan TV S01E08: Taxes in Japan, US citizens in Japan.

As an expat living in Japan, you may have to file taxes in your home country, depending on your citizenship and the tax laws of your home country. For example, if you are a British expat living in Japan, you may still be required to file taxes in the UK if you maintain ties or income sources there. This is also possible through platforms like Taxd. Each country’s tax laws vary, so be aware of their tax responsibilities in both Japan and your home country.

Looking for an accountant in Japan?

Taxes can cause many a headache, but with the help of this guide, we aim to provide a comprehensive overview of a tax accountant’s role in Japan. 

We have established valuable connections in the accounting space, and we can vouch for the satisfaction of individuals who have utilized their services. If you’re looking for an accounting firm in Japan or are an employed foreigner seeking guidance, please complete the form, and we will gladly explore our network to find a suitable match for your specific needs. Your satisfaction is our priority!