CHOOSING THE RIGHT "TARGET MONTH"

Let’s say your corporation’s fiscal year ends in December and you have the following sales figures:

In this example, April and May 2020 are the months with a 50% decrease (or more)  in sales compared to the corresponding months of the last year.

We’ll use the Calculation method for incorporated business:

Total annual sales of preceding fiscal year – (Monthly sales of target month × 12 months)

Total sales of the preceding fiscal year are ¥5,425,000.

Despite the fact that May has the highest sales decrease rate, it’s more advantageous to select April as the “target month” since you’ll get the maximum amount of ¥2 million.

The reason why April happened to be the best option for “target month” is because it meets the following two criteria: 1) its sales have dropped by at least 50% and 2) it has the lowest sales figures in 2020 so far.

It is, therefore, may be worth waiting for a little to see what sales figure the future can bring you. 

That is, of course, if you can afford to wait.

TALK TO OUR TEAM

By submitting, you agree to our Privacy Policy and Terms of Use

  • Operating in Japan since 1983
  • Clear communication in the English language
  • No hidden extras and upfront payments

I ended up taking the services of the Otani Accounting Office because their website was great and they had good reviews online.

The OAO team was with me every step of the way, offering advice and tips to make my future tax returns even easier.

As a result, I got a fantastic return, claiming the amounts that I was entitled to.”

Stephen Heller, Project Manager at Mugen Creations LLC

Thank you for visiting our website and expressing interest in our services. At the moment, we have reached our capacity for new inquiries and are only accepting new clients through referrals from our existing retainer clients. We apologize for any inconvenience this may cause and appreciate your understanding. We will be updating our schedule in late August, so we kindly ask that you reach out to us again after September 2023.

WE'RE

HIRING