Talk about tax and corporate finance in Japan
4 important things you need to know when you start your own business Each item has a detailed explanation you can find by clicking the link. 1. Blue Tax Application Form There are two tax filer statuses; One is Blue and the other is White. Blue has more tax benefits. You can see the details … Read More “4 important things you need to know when you start your own business” »
There are two tax filing statuses. One is called Blue Form filer and the other is called White Form filer. If you have your own company or have your own proprietorship, you should choose Blue Form filer status as your tax status because it is much better and basically there will be nothing to lose. … Read More “Benefit of Blue Form Tax filer status” »
Net asset has to be possitive to start a voluntary liquidation For whatever possible reasons, any companies may decide to close down and liquidate. Many companies, that accumulated losses by funding from a parent company overseas, have a large amount of loans as a history of covering their operating expenses while there were no enough … Read More “Liquidating a company and carried losses (blue and white)” »
This is an internal manual of accounting in Accounting Intelligence Withholding Tax For residents: Those are income categories that you need to deduct withholding tax: (1) fee for writers, lecturers/speakers, translators, interpreters, illustrators, composing music and editing, (2) fee for licensed professionals such as lawyers, CPAs, certified tax accountants, legal scriveners, consultants that provides analysis … Read More “Japanese withholding tax” »
Accounting handling The new Japanese GAAP for criptocurrencies was announced in March 2018. Valuation has to be mark-to-market if it has an active trading exchange or market. The difference has to be booked as income or loss (not comprehensive income or loss). Those actively traded criptocurrencies such as Bitcoin, Ethereum, XRP are supposed to be … Read More “Japanese GAAP and tax rule for criptocurrencies” »
An artwork lower than 1 MM yen per item is deductible from taxable income for corporate tax through the process called depreciation. The cost has to include auction fees (if you buy at an auction) and other expenses that came with the purchase (e.g. delivery fee). The life years for the tax is either 8 … Read More “Saving tax by investing in arts” »
Basic rules A partnership (Civil Code Article #667) is not usually regarded as an independent corporate entity, therefore it is taxable on each individual partners. Its tax implication is similar to those of co-owning. You claim income and expenses on a prorated basis. The rate can be whatever you agree with other partners (#674). Unless … Read More “Partnership is regarded as a pass-through entity for individual income tax (LLPの法人性)” »
The two rules are similar and are both trying to restrict interest expenses paid to its parent/affiliate companies. But they are a little bit different in their target. Here are the rules: Thin Capitalization Rule The interest paid to its affiliated company overseas that owns more than 50% of its shares is allowed to be … Read More “Thin Capitalization Rule and Earnings Stripping Rule” »
There were some arguments whether a Delaware Limited Liability Partnership (LLP) should be treated as a pass-through entity or not. If it is regarded as a pass-through entity, income or loss made through an LLP has to be included in Japanese taxable income. As of today (May 2018), it is regarded as a pass-through entity. … Read More “Can an LLP be considered as a pass-through entity?” »
If no one in your family will take your business over, you may want to consider passing it to directors or employees of your company. Upside is that the person knows the business well. He has been working in the company for long. The education necessary to take over the business will be relatively mild. … Read More “Employee Buyout -EBO” »
