Home » Services » Tax
EOS provides the following tax services directly or indirectly related to the U.S. expansion of Japanese companies:
As long as a company conducts business, corporate tax is an unavoidable problem. In the case of Japanese companies, there are several options for business development in the United States, such as establishing a local subsidiary or conducting business in a branch format. We provide consulting from the start-up of the business and propose tax treatment that meets the needs of the client. After the start of business, we will assist with corporate tax compliance, such as preparing the necessary tax returns every year and calculating the scheduled tax payment required for each quarter.
EOS has partnered with the Accounting and Auditing Department to reduce the burden on its clients by sharing the necessary materials and information. In addition, by avoiding duplication of work, we aim to keep the amount of remuneration to accounting firms within a reasonable range. In addition, we also work together within the firm for tax provisions and corporate tax accounting for uncertainties (ASC 740-10) required for Kraant's financial statements.
Respond to tax audits on behalf of clients who receive tax audit notices from federal or state tax authorities. We will provide advice on how to prepare the materials required for tax audits, making use of past experience, and will act as an agent for all tax audits. Unless instructed to do so by the tax inspector, meetings with the tax inspector are conducted at EOS' offices, so it is possible to avoid the client's efforts as much as possible. After the meeting with the tax authorities, we will report on what is the focus at that time, what issues have not surfaced, and what materials need to be submitted in the future.
Unlike general U.S. corporations, international corporations whose parent company is a Japanese corporation and have transactions with the parent company or affiliates spread throughout the world may require special tax adjustments, procedures, and disclosures. New clients launching services at EOS often discover tax practices that were missed by the average U.S. accounting firm. Considering cases unique to Japanese companies, we support Japanese companies active in the United States from the viewpoint of international taxation.
"We are a wholly owned subsidiary of a Japanese company and are responsible for distributing and selling the products of our Japanese parent company in the United States," "Royalty payments are made annually to the parent company," and "We support the Japanese parent's business from within the U.S. and receive compensation from the parent company as a service provider." These are just examples, but the first thing that companies subject to tax audits must be concerned about is whether they file tax returns every year taking into account transfer pricing taxation. Once a tax audit has been initiated, the tax inspector will need to explain to the authorities in a way that satisfies the tax inspector as to whether the transaction between the affiliates is reasonable and whether the operating margin is reasonable compared to other companies in the industry.
Since the majority of our clients are transfer pricing legal entities, EOS always pays attention to transfer pricing issues and provides tax consulting and planning services to determine whether there are any transfer pricing tax risks and how to deal with them if any, whenever a client consults with them about starting a new business.
For clients who support concurrent documentation or Advance Pricing Agreement (APA) at EOS, transfer pricing service representatives are also present at the tax audit, submit and explain transfer pricing studies, and respond to transfer pricing-related questions from tax inspectors in a timely manner.
When a Japanese company starts a business in the United States, one of the first requirements is the payment of employee salaries. If you have been dispatched as an expatriate but do not understand payroll processing, we can support your accounting and payroll calculation. We will work with you to register with the federal and state authorities to make your required tax payments to these tax authorities. In addition, we introduce and propose the optimal tax saving plan, so please feel free to consult us first.
EOS is experienced regarding the salary structure of expatriates of Japanese companies and undertakes special salary-related work for expatriates (e.g. payroll tax calculation and gross-up calculation in the case of take-home pay guarantee). We also provide addresses for U.S. social insurance tax exemption procedures related to U.S. assignments.
First, we will show you the details to be paid as salary and welfare expenses (Fringe Benefit) in the United States and Japan, judge whether it should be included in payroll calculation under the U.S. tax law, calculate withholding tax related to salary, and calculate the total salary. If requested, we will input salary data on your behalf Into the payroll processing service. At the end of the year, we work with you to issue a U.S. withholding form (W-2) based on the sum of this salary data.
Monthly payroll support will be provided in Japanese.
Keeping in mind that the preparation of personal income tax returns at the beginning of the year also minimizes the burden on expatriates who are not accustomed to filing personal income tax returns in the United States, we assist in disclosing information in the employee’s individual tax return which are not common in a standard U.S. tax return.
At EOS, we try to have the same person in charge of everything from payroll tax to personal income tax filing as to promote efficiency in the payroll function.