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

1.Basic Transaction Illustration

2. Business Proces

Step 1 　 request the income and expenditure report from the management company or the owner of the property

Step 2 　Make a statement of income and expenditure

Step 3 　collect relevant vouchers of income and expenses

Step 4 　make, review and confirm the declaration form

Step 5 　Make a tax report to the customer via Emai

Step 6 　Submit a confirmation statement

Step 7 　Pay taxes or collect repayment

3. Points to note about tax declaration

（1）Confirm the required documents and request submission

l Regarding the application period of the cyan declaration, basically apply within two months from the start of the housing/business (such as the start of recruiting tenants), but if the application is not submitted within two months, your cyan declaration will be Start in the next tax year. Please note that the application procedures for our company will take time. If you decide to entrust our company, please contact us as soon as possible so that our company can apply for you in time.

l All income from investment-type real estate in Japan must be declared for income tax. Therefore, regardless of whether the entrusted management company is the same, please provide relevant information to our company for all investment-type real estate in Japan.

l Regarding our other service fees, such as declaration of transfer income, declaration of consumption tax, etc., we will quote you according to your specific situation.

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.