General incorporated associations and general incorporated foundations are generally treated as ordinary companies for tax purposes, similar to stock companies and limited liability companies. However, non-profit corporations that meet certain requirements about administration, organization, and other aspects are treated as public interest corporations for tax purposes; corporate tax is imposed only on their income generated from profit-making businesses. Public interest incorporated foundations and public interest incorporated associations that are authorized as public interest corporations are granted tax incentives for contributors that are not applied to general incorporated associations and general incorporated foundations that are non-profit corporations.
BDO Japan provides support for bookkeeping, account settlement, and tax returns along with advice on the incorporation and institutional design of general incorporated foundations and general incorporated associations. As mentioned in the business succession consulting section, we provide support for authorization of public interest corporations and help clients prepare financial statements and others after the authorization as a public interest corporation.