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New Tool for Small Enterprises: Executive Compensation Optimization Simulator

On July 30, 2026, PROLEXT Co. Ltd., in collaboration with PROLEXT Tax Corporation, will launch a free web tool aimed at small business owners of corporations with a capital of 100 million yen or less. This Simulator calculates the optimal executive compensation amount to minimize the combined burden of corporate taxes, income taxes, resident taxes, and social insurance premiums.

Background: Challenges Facing Small Business Owners

In recent years, increasing social insurance rates and rising tax burdens have led to a decrease in the net income for small business owners. Notably, those in the upper echelons of management, with actual corporate profits before executive compensation ranging from 10 million yen to several tens of millions, are encountering two significant barriers:

1. Knowledge Barrier

Complexity of Four-Tax Calculations: Balancing corporate profits and personal compensation involves the intertwined calculations of corporate tax, income tax, resident tax, and social insurance. This complexity makes it difficult for owners to independently determine the point at which their household's net income is maximized.

2. Unawareness of Current Situation

Opportunity Loss: Many entrepreneurs remain oblivious to the fact that their current executive compensation — for instance, 800,000 yen per month — could lead to losses in the range of tens or even hundreds of thousands of yen annually due to suboptimal tax structures.

Overview of the Simulator

The Executive Compensation Optimization Simulator allows entrepreneurs to input their current company profits and executive compensation intuitively. It visually presents the differences between their present settings and the optimal configurations for maximizing net income.

Comparison with Existing Simulators

Corporate tax, income tax, resident tax, social insurance (all four)

Steps to Using the Simulator and Receiving a Personalized Roadmap

This tool provides a sophisticated basic estimation under tax accountant supervision, allowing for a comprehensive calculation of taxes and insurance premiums. However, much like online free simulators, it cannot derive a company-specific optimal solution alone, especially concerning key factors such as "distributing compensation to a spouse" or "executive bonuses (pre-determined salary notifications)."

Therefore, for those interested in a tailored simulation, PROLEXT offers the following steps for free individual estimations and consultations:

STEP 1: Online Quick Estimation

Users can input basic information into the web-based simulator to visually understand the difference between their current executive compensation settings and the optimal values.

STEP 2: Requesting Individual Estimation via LINE

Entrepreneurs can input unique conditions, such as distributing compensation to spouses or executive bonuses, beyond the capabilities of the simple simulator, and can apply for personalized estimations and consultations.

STEP 3: Roadmap Presentation

Tax accountants affiliated with PROLEXT will create a tailored roadmap for maximizing net income based on the information provided, offering free advice. This allows entrepreneurs to maintain their relationship with their current tax advisors while experiencing a specific implementation plan as an additional opinion for maximizing their net income.

Target Audience

The simulator, along with the individual estimation and consultation services, is optimized for small business owners who meet the following criteria:

• - Capital Size: Corporations with capital under 100 million yen.
• - Revenue Size: Companies with stable profits before executive compensation ranging from 10 million yen to several tens of millions annually.
• - Business Owner Challenges: Owners struggling with tax and social insurance payments despite generating sales and profits, or those whose current tax advisors focus solely on procedural aspects rather than optimization and tax-saving proposals.

Company Overview and Development Partners

Developer and Provider: PROLEXT Co. Ltd.

• - Location: 11th Floor, +SHIFT Nihonbashi Sakuradori, 3-14-3 Nihonbashi, Chuo City, Tokyo 103-0027
• - CEO: Yoshihiro Kanamori
• - Established: December 2024
• - Business Description: Tax services for individuals and corporations, estate planning, investment support, and financial advisory services.
• - Website: PROLEXT Website

Collaborative Development and Consultation Partner: PROLEXT Tax Corporation

• - Representative: Yoshihiro Kanamori
• - Business Description: Tax representation, preparation of tax documents, tax consultation, financial and management consulting.

Contact for Inquiries

For inquiries regarding this matter, please use the following form: Contact Form