The Client is a Dutch Consultancy specializing in IT Consultancy Projects.
The client, a Dutch IT Consultancy won a project in Japan and needed to have 15-20 of their staff working at the client site in Japan for up to 2 years. All of the consultants were Western Europeans and thus would need to be sponsored on Japanese Work Permits and would need to be pay-rolled locally and compliantly. The Dutch Client didn’t have a Japanese entity and thus required a Japanese Management Company to sponsor their staff on their behalf on Japanese Work Permits and to pay-roll the candidates locally on their behalf.
The Client was not experienced with Japanese taxation or migration and was not incorporated in Japan. They were unable to provide sponsorship or local payroll. They client was concerned with compliance but also had a need to get their staff on the client asap to support their project. Further they were price sensitive to both visa costs and management fees.
The Client searched on Google and found Contractor Taxations webpages on Japan, overviewing the service we could provide and then called our UK offices to discuss this in more detail. Our client manager took all the relevant details of the project and the solution they were looking for and contacted our 3 partner companies that cover Japan. The client manager organized 3 separate quotes from each partner and presented the options to the client. As it happened the Client was already in discussions with one of our partners independently but had found their costs too high.
Our client manager organized 2 conference calls between our partners and the client to discuss each of their services and after much discussion the client provisionally agreed to proceed with one of our partners.
Our local partner was then given permission by the client to have a detailed conversation with the each candidate that was to be assigned to Japan to ensure they understood the process and the way their pay-roll was going to be processed before agreeing to proceed. Issues such as dual tax agreements and non-domicile legislation had to be covered as well as salary matching the net salaries in Japan. The candidates were assured of the highest possible retention rate on their earnings. Additionally they were fully compliant with all relevant tax, employment and immigration law. The Client was further safe in the knowledge that our local partner had their staff covered on their Professional Indemnity and Public Liability Insurances.
After prolonged contractual negotiations were completed, mediated by Contractor Taxation’s Client Manager the contracts were signed and the initial assignees were able to commence the visa process and were onsite within the month.
Every month the candidates only administration was to send in timesheets and expense reports. The Client received a corresponding invoice. Pay-rolls were run monthly as per local legislation. Both candidate and client had access to detailed reporting on invoices, payments and expense processing. This included scanned confirmation of payment for the individual tax and social security relating to the candidates employment.
The local partner also provided the contractor with end of financial year and end of assignment statements to use with their tax reporting locally and internationally.
The Client was able to support their project in country with their own staff and resolve issues with their client in real time and in person. Providing a level of support not possible from their headquarters in Holland. Our local partner was able to provide the solution the client required within the specified timelines but also more importantly within their designated budget.
Products and services our company used
- International tax advice
- Calculation of net earnings
- Business Visa Application and Sponsorship
- Work Permit Application and Sponsorship
- Payment through local payroll
- Calculation, filing and reporting of tax and social security for employer and employee
- Expense Processing
Services provided by other groups or companies
Contractor Taxation used the service of one of our 3 vetted Japanese partners who acted as the contractor management company on this project. They sponsored the clients staff on a business visas and then a work permits. They also handled the in-country payroll and taxation.