Tax saving is not simply increasing expenses
Unnecessary spending can damage cash flow and may not achieve the intended tax result. Business necessity and tax effect should be considered together.
Director remuneration cannot be changed freely
Japan has timing and procedural rules for director compensation. A late change after profits are known may not be deductible.
Consumption tax and corporate tax are separate issues
Consumption tax payments and refunds, the invoice system and corporate tax deductibility follow different rules.
Head-office transactions require transfer-pricing awareness
Prices, royalties and management fees with China headquarters or related companies should be documented with tax rationale.