The “30 Million Yen” BarWhy Local Tax Compliance — and the Right Advisor — Can Make or Break Your Business Manager Visa in Japan

　Japan has entered a new era in its screening of foreign entrepreneurs.

For holders and applicants of the Business Manager (経営・管理) visa, success is no longer determined by a business idea alone. Immigration authorities now place strong emphasis on capital adequacy, financial credibility, operational continuity, and strict tax compliance.

One of the most underestimated risks is Japan’s corporate inhabitant tax per-capita levy—a local tax that applies even when a company has zero profit. Under the 2025 regulatory framework, failure to comply with this obligation can directly result in visa renewal denial or severe shortening of the permitted period of stay.

This article explains the new rules, the risks, and why professional, integrated support is now essential.

1. The New Standard: JPY 30 Million Capital Requirement

Effective October 16, 2025, the Business Manager visa requirements were substantially revised.

Pursuant to Article 7, Paragraph 1, Item 2 of the Ministerial Ordinance to the Immigration Control and Refugee Recognition Act, the minimum financial threshold increased sixfold, from JPY 5 million to JPY 30 million.

Key requirements under the revised rules

For corporations

• Paid-in capital of at least JPY 30 million

For sole proprietors

• Total investment exceeding JPY 30 million, including:

  • Office rent

  • Equipment and fixtures

  • Operating capital

  • Approximately one year of wage costs

Mandatory employment

• At least one full-time employee who is:

  • A Japanese national, or

  • A long-term resident (Permanent Resident, Spouse of Japanese National, etc.)

These changes clearly signal Japan’s policy direction:only well-capitalized, financially sound, and administratively compliant businesses are expected to qualify.

2. The “Pay-to-Exist” Tax: Corporate Inhabitant Tax (Kunto-wari)

A critical but often overlooked feature of Japan’s tax system is the corporate inhabitant tax per-capita levy, commonly known as Kunto-wari (均等割).

Key characteristics

• Levied by prefectural and municipal governments

• Calculated based on:

  • Paid-in capital

  • Number of employees

• Not based on profit

Legal basis

• Local Tax Act (地方税法), Article 312

Even if:

• The company operates at a loss, and

• Corporate income tax is zero,

the per-capita levy must still be paid.

For small corporations, the annual amount typically begins at approximately JPY 70,000, increasing as capital and headcount grow.

Many foreign founders mistakenly assume that “no profit means no tax.”In Japan, this misunderstanding can be fatal to immigration status.

3. Why Local Tax Compliance Directly Affects Visa Renewal

Visa renewal is discretionary

Under Article 21, Paragraph 3 of the Immigration Control and Refugee Recognition Act, extensions of stay are granted only when the Minister of Justice determines that “reasonable grounds” exist.

Visa renewal is not a right, but a discretionary administrative decision.

Immigration guidelines explicitly evaluate tax compliance

The Immigration Services Agency’s officialGuidelines for Permission for Change of Status of Residence and Extension of Period of Stay clearly list:

“Fulfilling tax obligations” (納税義務の履行)

as a primary evaluation factor.

Unpaid taxes—including local taxes such as the per-capita levy—are treated as a negative element in the assessment.

4. Case Study: Business Manager Visa Renewal Failure Due to Local Tax Arrears

Background

• Foreign entrepreneur

• Tokyo-based corporation

• Paid-in capital: JPY 10 million (pre-2025 standard)

• Early-stage business, no profits in first two fiscal years

The issue

• Corporate tax returns were filed correctly

• National corporate tax was zero

• Corporate inhabitant tax per-capita levy was not paid, based on the assumption that losses meant no tax liability

The unpaid amount was less than JPY 100,000 per year.

Immigration outcome

• During renewal, immigration requested tax payment certificates

• Local tax arrears were discovered

• The business was assessed as lacking:

  • Compliance awareness

  • Operational stability

Result

• Multi-year renewal was denied

• Only a one-year extension was granted, with an explicit warning for future renewals

Under the post-2025 stricter standards, similar cases may result in outright denial.

Key lessonEven small local tax arrears can outweigh strong business plans and significant personal investment.

5. Why Professional Planning and Tax Compliance Must Be Integrated

Under the new regulatory environment, fragmented support is no longer sufficient.Immigration, business planning, and tax compliance are now inseparably linked.

This is where Tokyo Advisory provides decisive value.

Why Tokyo Advisory

Strong Business & Financial Planning — Led by a Certified Public Accountant

Tokyo Advisory is led by a professional who holds a Certified Public Accountant (CPA) qualification, providing deep expertise in:

• Immigration-aligned business planning

• Medium- to long-term financial and cash flow planning

• Capital structuring under the JPY 30 million Business Manager visa requirement

• Financial projections designed to withstand scrutiny by immigration authorities and financial institutions

We focus on substance and sustainability, not superficial plans created solely for visa purposes.

Licensed Japanese Tax Accountant — Full Compliance, Fully Web-Based

Tokyo Advisory also holds the Japanese Certified Tax Accountant (Zeirishi) license, enabling us to provide end-to-end tax services in Japan, including:

• Corporate tax filings

• Local tax filings (including corporate inhabitant tax and per-capita levy)

• Tax payment procedures and compliance monitoring

• Issuance and management of tax payment certificates (Nozei Shomeisho)

All filings and payments are handled through web-based systems, allowing overseas founders and busy executives to remain fully compliant without unnecessary in-person procedures.

6. What This Means for Business Manager Visa Holders

By integrating:

• Strategic business and financial planning, and

• Ongoing, licensed tax compliance

Tokyo Advisory helps ensure that:

• Tax obligations are never overlooked—even in loss-making years

• Financial records remain clean and consistent

• Visa renewal applications are supported by solid, credible documentation

In Japan’s post-2025 environment, professional planning and flawless compliance are no longer optional—they are essential.

Consult Tokyo Advisory

If you are applying for or renewing a Business Manager visa, or if you are uncertain whether your current structure meets Japan’s latest requirements, early professional advice can prevent costly mistakes.

👉 Consult Tokyo Advisory🔗Contact/Appointment | Tokyoadvisory

Disclaimer

This article provides general information based on the 2025 legal revisions.Visa outcomes are discretionary and depend on individual circumstances.

For case-specific advice, please consult a licensed Administrative Scrivener (Gyoseishoshi) or qualified tax professional.