[notpushkin]

For Japan in specific, you’ll want to look into JCFC. Not a tax or legal advice, but IIRC it boils down to: if your company (assuming 100% ownership) is paying less taxes than a Japanese company would, and you’re a Japanese tax resident, you would need to pay the difference in Japan. It is probably similar in other jurisdictions that have CFC laws.

Also do read up on permanent establishment rules as well.

[registeredcorn]

Ah, sorry. I was using Japan as an example of "living somewhere very far outside of the EU" to highlight the sense of distance between the two. I have listened to a little bit about how difficult it is to open a business in Japan (as a foreigner, at least) and how stressful tax time can be [1], but I'm not well versed in the specifics of how they do things.

[1] https://youtu.be/XpvTyyfcBaw?t=416

[naishoya]

Japan as an example of anything not specific to Japan is problematic.

Almost nothing is handled in a similar means or approach to Japanese standard practices, anywhere else.

Speaking as someone with 30+ years experience in both Japanese and non-Japanese business dealings and having had and being currently in the process of renewing work and residence permission in Japan under a different classification than before, and having visa sponsors who just finished 'Tax Season' there; the system is both at once extremely linear, and somehow opaque, and the actual paperwork is more easily measured in centimeters than in numbers of pages.

However; that being said, the actual costs of taxes and other fees including retaining the services of an administrative scrivener (not quite the same as a paralegal accountant) are very logical and reasonable for the resultant social/infrastructure outcomes.

But, if one is not already fully fluent in Japanese and does not have a driving requirement to reside and do business in Japan; the system is simply not designed for participation from the outside like the EU or US. When foreigners attempt to participate directly, even the Japanese know that the local system is complex in puzzling ways, and the most common comment I have personally observed is, "Why would you voluntarily do this; we all do it because we must, but if you don't have to, WHY?"

[notpushkin]

I’d assume most foreigners are doing this because they want to live in Japan :-) I was researching it for the very same reason.