-Tax Service Support for Foreigne-Gaia Foreigner Tax Service.com｜Gaia Tax Corporation

1.Basic Transaction Illustration

2.Operation Main Steps

Step 1 : Preparation for Income and Expenditure Report

Step 2 : Create Breakdown of Income and Expenditure Report

Step 3 : Create and Submit Financial Statements and Tax Returns

3.Operation Steps

（1）Confirm the required documents and request submission

① Receive from real estate agency:
relevant documents when owner acquires the property
② Receive from property management company:
relevant documents of property revenues and expenses
③ Receive from government offices:
tax-related documents
④ Receive form owner:
necessary expense-related documents other than above.

Regarding ① , we will receive the real estate sales contract and the related documents from the real estate agency. If you file an income tax return for the first time, we have to submit a written proclamation in order to file the blue form for returns. If the property delivered before 15th January, you have to submit it by 15th March, If it is after 16th January, you can still apply as long as it is within two months. The blue tax return can be filed once we receive certain documents.

Regarding ②, in general, we will receive the report of income and expenditure from the property management company every three months.

Regarding ③, we will receive the notification of property tax and property acquisition tax from government offices.

Regarding ④, we will ask the owner to provide necessary expense-related documents.

I-1 Preparation (Revenue-related)

We will confirm the revenue based on the report of income and lease contract provided by the property management company.

I-2 Preparation (Necessary expenses)

The necessary expenses that we can confirm from the report of income and expenditure provided by the property management company are

■Building management expense

In addition, other expenses to be recognized are

■Depreciation expense
■Interest on a loan

The necessary expenses that we can confirm from the documents (e.g. receipts) provided from owner are

■Travel expenses (e.g. airline tickets, transportation expense in Japan)
For owner, we allow recognition of travel fees two time per every property.

■Other expenses

Please be noted that only expenses that are used for property will be recognized as necessary expenses. For instance, if you buy cloth during the stay in Japan, the cloth expense will not be recognized as necessary expense because it is for personal use.

Blue Tax Return Deduction

■You can take a 100,000 JPY deduction to taxable income.
■Deficit may be carried forward for three years

(2) Create the breakdown of income balance

(3) Create and submit the financial statements and tax returns

■Confirm the withholding income tax from the payment records provided by the tenant.
■Income deductions for non-residents:
・Miscellaneous deduction (e.g. natural disasters, fire, theft etc.)
・Personal Exemption ( JPY380,000)

4.Final income tax return service list of the contents

Gaia Tax Service
① Tax Representative	1 Pay tax and receive tax refund as well as negotiate with tax authority
	2 Prepare and submit tax applications
② Tax Return Filing	1 File tax return
	2 Pay tax, prepare and submit tax applications
③ The fee of applying reduction and exemption for Property Tax and Property Acquisition Tax is 10,000 JPY(tax excluded) per property.
④ We do not pay taxes in advance for clients.

Service Fee
① Tax Representative （tax excluded） (Annual fee)	Regular	Shared property (shared by more than one person)		Shared property (shared by more than three persons)
		Per person	2 persons in total	Per person	3 persons in total
1 Property	¥15,000	¥7,500	¥15,000	¥5,000	¥15,000
2 Properties	¥15,000	¥7,500	¥15,000	¥5,000	¥15,000
3 Properties	¥18,000	¥9,000	¥18,000	¥6,000	¥18,000
◆　Tax Representative fee incurs from the year of purchasing the property. Basically, the fee is non-refundable ◆　In case of contract termination, please inform us by the end of the previous year. ◆　Extra 3,000 JPY(tax excluded) will be charged for every 2 additional rooms for each property (for both investment and residence-use property). ◆　We calculate separately for a whole building and commercial use property.
②　Tax Return Filing Fee （tax excluded）	Regular	Shared property (shared by more than one person)		Shared property (shared by more than three persons)
		Per person	2 persons in total	Per person	3 persons in total
First Year	¥60,000	¥45,000	¥90,000	¥45,000	¥135,000
Second Year	¥50,000	¥35,000	¥70,000	¥35,000	¥105,000
◆　Tax return filing is only for investment properties. ◆　Extra 10,000 JPY (tax excluded) will be charged for every 2 additional rooms for investment properties. ◆　The following cases apply to "First Year" fees: Newly-purchased property. First time to file tax return. ◆　In the case of newly-soleowned (not shared) property, the fee is calculated according to the regular fees even if the client already owns a shared property. ◆　Shared property fees are applicable when all the property owners are under our management registration. ◆　We calculate separately for a whole building and commercial use property. ◆　Filing period of tax return is from February 16 to March 15 every year. When March 15 falls on a holiday, the next business day is considered to be the due date.
Notes： ◆ A consumption tax will be levied. The consumption tax rate is currently eight percent. ◆ Please email us if you have any questions or inquiries about tax or properties.