Consolidated taxation is a system where a parent company and its subsidiaries submit a single consolidated tax return and pay taxes on a combined basis, rather than filing individual tax returns and paying taxes separately. This allows for the potential utilization of accumulated losses within affiliated companies, leading to tax savings for the consolidated group.
However, it’s important to note that consolidated taxation is an opt-in system, so companies need to carefully consider the advantages of implementing consolidated taxation as a corporate group. Conducting specific tax amount simulations and evaluating the tax savings potential is crucial. Moreover, the companies eligible for consolidated taxation are limited to corporations where the parent company owns all issued shares, so it doesn’t necessarily encompass all subsidiary companies. When implementing consolidated taxation, considerations from a specialized perspective are needed, such as strengthening internal control functions for early reporting to the parent company and potential changes in fiscal year-end.
We can support you in taking full advantage of the benefits of consolidated taxation by assisting with the tax filings of both parent and subsidiary companies
Companies that may benefit from our services
- Individuals who own assets not only in Japan but also overseas.
- Individuals with family members or heirs in both domestic and international locations.
- Business owners with multinational companies.
- Heirs who are likely to face issues related to the international assessment of assets and the determination of taxation rights.
- Individuals with legally complex inheritance situations and family relationships.
- Individuals who own overseas assets and require estate tax planning and calculations.