Japan

HR and HR Software Guide

Country Overview

Japan is located in the Northern Hemisphere, west of the Pacific Ocean, and is a nation with diverse geography and cultural heritage. Japan is a commercial center with several high-tech and specialized hubs, such as the electronic and automotive industries. The electric bullet trains that connect the islands represent technological advancement and progress.

Capital City: Tokyo

Currency: Japanese Yen (JPY)

Principal language: Japanese

Government: Parliamentary Constitutional Monarchy

In Japan, it is the employer’s responsibility to ensure that a worker completely understands the working conditions outlined in a labor contract. Such labor contracts might be either verbal or written. 

The statutory national holidays are as follows:  

  • January 1 – New Year’s Day 
  • January 11 – Coming of Age Day 
  • February 11 – National Foundation Day 
  • February 23 – Emperor’s Birthday 
  • March 20 – Spring Equinox 
  • April 29 – Shōwa Day 
  • May 3 – Constitution Memorial Day 
  • May 4 – Greenery Day 
  • May 5 – Children’s Day 
  • July 22 – Sea Day 
  • July 23 – Sports Day 
  • August 8 – Mountain Day 
  • August 9 – Day off for Mountain Day 
  • September 20 – Respect for the Aged Day 
  • September 23 – Autumn Equinox 
  • November 3 – Culture Day 
  • November 23 – Labor Thanksgiving Day 

Accounting

Japanese Generally Accepted Accounting Principles (GAAP) apply in Japan. Organizations must prepare financial statements annually. 

Tax Rates 

Corporate Tax 

The tax rate in Japan is 23.2%. 

Value Added Tax (VAT)

The VAT rate is 10% for most goods and services. 

For certain items, the VAT rate is 8% and even 0% in certain circumstances (e.g., export transactions).

The Act of Protection of Personal Information (APPI) regulates the purposes for which an employer uses an employee’s personal information. It is pivotal that all practical steps to govern the security of employee personal data be taken care of by the corporation.

Bribery of public officials (komuin) is regulated under Articles 197 and 198 of the Japanese Criminal Code. Penalties (for individuals and legal entities) include imprisonment for up to 3 years, a monetary fine of JPY 2.5 million, and cancellation of business license. 

The Penal Code does not identify bribery of private sector officials as a crime, though the presence of the Companies Act does punish both parties involved. The penalty for individuals includes imprisonment for up to 5 years and a monetary fine of JPY 500,000. 

There is no penalty for business and legal entities.

Simplify workforce management in Japan with Mihi HR Software.

  • Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
  • Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
  • Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
  • Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
  • Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
  • One HR software for your global needs
  • Ensured compliance with in-country employment and labor laws
  • Connectivity and integrations with ERP and Payroll systems
  • Better workforce data and increased visibility of global teams
  • Supporting 170+ countries and localized in 17+ languages
  • Improved employee experience with employee self-service functionality and 24/7 employee support

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