Japan Tax Guide

Customer Testimonial: Heraeus K.K.

Creation date2024/01/18


Customer Testimonial: Heraeus K.K.

About Heraeus K.K.

Address: Sumitomo Fudosan Otowa Bldg., 1F, 2F, 5F, 2-9-3 Otsuka, Bunkyo-ku, Tokyo
Year of establishment: 1987
Representative: Yamauchi Hideto
Business sector: Specialized trading company

Business description: Import and sale of goods (namely, industrial metal precious products, chemicals, and industrial specialized light sources) produced by Heraeus Group and other producers. Heraeus is a global technology company originated in Germany, with a history spanning over 360 years.

Headquartered in Hanau, Germany, Heraeus is a cutting-edge global technology company. The Heraeus family started the business in 1660 as a pharmacy. Today, Heraeus Group continues to develop innovative materials across environmental, electronic, healthcare, and industrial sectors while delivering a wide range of products and services.

Heraeus’ sales in fiscal year 2021 reached approximately 3.8 trillion yen and currently employs around 16,200 people across 40 countries. The Japanese entity has around 70 employees and specializes in electronic components and chemicals containing precious metals.

Before and After

Before Working With TOMA:

  • Lack of accessible consultation on international tax
  • Response from tax consultant takes time and lack concision
  • Incurring high costs for consulting services

After Working With TOMA:

  • Improved integration between the operations and management department
  • Complete support for international tax investigations
  • Able to receive wide range of services at an affordable price

Introduction to TOMA

Interviewees: Ryuji Nagase (Deputy Manager, Management Department), Rika Endo (Section Chief, Management Department)

Nagase: Our initial introduction to TOMA was through our sister company in Japan, Heraeus Electro-Nite K.K., whom TOMA regularly advises regarding international taxation. Having heard about the attentive service of TOMA and needing help on a range of matters, we asked our sister company to connect us. We officially started working together in 2015.

Our parent company in Germany gave their immediate approval for us working with TOMA. They must have also heard about TOMA from our sister company and had a lot of confidence in them.

Before Working With TOMA

Nagase: We previously engaged a major tax accountancy firm famous in the industry. However, they seemed reluctant when it came to international taxation, which made us hesitant to seek their advice on these topics.

Endo: When we did reach out, their responses were often unclear and failed to address the issue. I also remember them taking a long time to respond.

Nagase: There was also the issue of price. Their consultation fees were fairly high.

After Working With TOMA

Nagase: It became much easier to ask about day-to-day matters. We were very satisfied with TOMA’s quick and concise responses. My impression of international tax consulting as a service completely changed.

Endo: They offer email consultation on top of monthly meetings, which is helpful because I tend to ask questions whenever they arise. I am always pleasantly surprised at the speed and quality of their response.

Nagase: TOMA’s expertise in international tax and ability to communicate in English are very reassuring. Our Japanese entity imports and sells products manufactured in the United States, Singapore, and by our German parent company. As such, TOMA’s support for tax-related issues associated with these international transactions is very helpful.

One example is when they attended a global conference on Singaporean tax law together with our parent company. TOMA went beyond the typical scope of consulting and provided valuable insights for our German parent company.

Impact of TOMA’s Services

Nagase: Our group’s business is diverse, presenting us with all types of challenges related to international tax on a regular basis. We often struggle to answer questions from our operations department. Now that we are able to receive timely advice, the operations department and management department are coordinating very effectively.

Endo: TOMA provides us with helpful information in their monthly visits, such as tax law reforms and the requisite preparations. 

Nagase: They also offered valuable advice before an international tax investigation, which can often be stressful. Throughout the investigation, we received well-needed support from consultants who had previously worked in the National Tax Agency. As a result, we completed the investigation with zero issues.

Endo: TOMA’s assistance is not only limited to tax. They have consultants who specialize in matters relating to management. It’s great to receive such a wide range of services.

Nagase: Recently, TOMA informed us on the Electronic Books Maintenance Act, set to be enforced from January 1, 2024, and connected us with their IT consultant. We ended up utilizing their standalone service and successfully digitized our receipts and invoices, an innovative move for a company in our industry.

We also utilized their administrative scrivener’s service for the preparation of registration records and meeting minutes, as well as attended workshops on harassment conducted by their labor and social security attorneys. Like their tax advisory, all of these services were very affordable and accessible.

Endo: When using their other services, we did not need to explain our company’s situation again, as our information had been well communicated internally. This must be one of the main strengths of TOMA’s one-stop consulting service.

Impression of TOMA and the Consultants

Endo: TOMA’s consultants are all very friendly. Their certified experts remain highly approachable, welcoming all of my inquiries with empathy. I also hear TOMA runs many recreational events for its employees. It must be a great environment to work in.  

Nagase: Their consultants are cheerful and energetic. Our monthly meetings are very enjoyable.

Endo: Personnel changes are common among consulting services, and the prospect of parting ways with our current consultant saddens us due to the close bond we’ve formed. However, our confidence in TOMA assures us that any consultants they assign us will be exceptional.

Expectations for TOMA and Future Outlook

Nagase: I can’t think of anything more to expect from TOMA, because I’m already very satisfied [laughs].

Our products are highly demanded in the environmental, electronic, healthcare, and industrial sector and also contribute to sustainability. Although unnoticed by regular consumers, some simple examples of our products include materials used in electronic components and chemical materials necessary in the production of smartphones, televisions, and automobiles.

Fortunately, we have experienced growth in recent years and expect further growth in the future. However, we do not plan to become complacent. In the short term, we aim to establish new pillars of business, such as developing new applications for existing products. In the medium to long term, we envision initiatives like commercializing in-house startups, expanding our business through M&A, and enhancing research and development facilities.

As we further expand our business going forward, there is no doubt that we will seek the help of TOMA.

Services Used by Heraeus

Support for Foreign Companies

TOMA Consultants Group provides one-stop services for foreign companies operating in Japan. We offer all-round assistance tailored to each stage of your business, from planning to enter the Japanese market to regular operations after establishment. Initial consultation is free.

Document Digitization Consulting

Our comprehensive service includes selecting documents for digitization, identifying the relevant challenges, proposing solutions, and selecting and implementing a suitable system.

Administrative Procedures

Administrative scriveners are known colloquially as “your neighborhood legal experts.” These legal experts provide timely and accurate support in an attentive manner. Leveraging the core strength of TOMA Consultants Group, we assist in administrative procedures and address your legal concerns from a business management perspective.

Human Resource Management Consulting

We aim to design a human resource framework that allows every employee to create a career plan based on the company’s mission and business strategy, while actualizing a stage for them to work with purpose, positivity, proactiveness towards their aspirations.