Talk about tax and corporate finance in Japan
We would think that the business succession of SMEs is usually to pass it to his next generation in his family. That is still the majority of the cases but it is not always true. These days, there are more successions to directors or employees who are not from his family or selling to a … Read More “Not only family member but other can be the successor of you business” »
Succession/Inheritance If you own a business and you want to pass it to your children, you probably want to know how much tax you will have to pay for the transfer. It can be either a capital gain tax (if you take the form of selling), gift tax or inheritance tax. Forms of succession Some … Read More “Why you need to know your company valuation for its succession” »
Thin capitalization rule You may think that putting in capital in form of loan is better (more tax efficient) than in form of equity because you will probably be able to pay yourself back in form of interest to reduce your taxable income. Interest must be deductible, right? That is not always the case. The … Read More “Japanese Thin Capitalization Rule and Earning Stripping Rule （過小資本税制と過大資本利子税制）” »
米国財務省と歳入庁は昨年(2017/12/22)に発表された「移行税（transition tax）」についてのガイダンスを発表しました。 最近施行された米国歳入法のセクション965で、米国人（個人と法人の両方を含む）が所有する海外の会社（日本にある会社をもちろん含む）の内部留保について8パーセントから15.5パーセントの税金をかけることが規定されました。これは日本に居住するアメリカ人が日本で作った会社にも当てはまるので、日本で会社をやっているアメリカ人の方々には注意が必要です。 考え方としては、海外に留保された利益がいったんアメリカに配当という形で還元されたとみなして課税する仕組みのようです。 実際の税率ですが、現金には15.5パーセント、それ以外の資産には8パーセントの税金が課せられるようです。内部留保と言うのは自己資本から最初の資本金と資本準備金等を控除した利益の積み重ねで、直接どの資産項目と結びつくと言うものではないので、おそらく現金から順番にあてていって、残りをその他の資産で留保していると考えるのではないでしょうか。 いずれにせよ、日本を含むアメリカ人には大変な話の様で、アメリカ商工会議所のニュースレターでも大きく取り上げられていますし、私どもの事務所に勤務するアメリカ人CPAもこれはひどい税金だと言っていました。 こちらがIRSガイドラインの原文です。
I became a big believer in check list recently after I read a book called Checklist by Atul Gawande. It explained various situations where a checklist played a dramatic role in reducing failure rate in medicine, law practice, construction etc. A simple check list that covers a wide range of items will save you from … Read More “Checklist saves your corporate tax” »
After a few years of struggle (or even from the first year), your company has started generating enough income. Now you are worried about the tax to pay. There are some tax tips that everybody know (not everybody but many. Sorry). They are nothing illegal. There should be no much reason for you not to … Read More “Tax saving tips for SMEs” »
With stock options being qualified, the gains will be taxed as capital gain (flat 20.42%) and it will be taxed only at the sales of the shares (as opposed to being tax at the exercise on the gain as salary income which is taxed with progressive tax rate). Qualified stock option has to meet the … Read More “Japanese qualified stock options” »
There are some major restrictions to liquidation of a company that you should know. First, a company with negative net asset is required to have a court involvement in the process of liquidation. To avoid the additional cost and prolonged legal schedule, you will probably want to choose “a voluntary closure”, which will not require … Read More “Two possible mistakes you should know when liquidating a company” »
When liquidating a subsidiary of a foreign corporation in Japan, you need to be careful about the timing of giving up loans by the parent company. It may cause a tax issue. You will need to forgive your loan to the liquidating company because it has to be positive in net asset for voluntary liquidation … Read More “Company liquidation debt waiver and corporate tax” »
Some people still believe that it would be a wise idea to buy a zombie company with NOL (Net Operating Loss) and use it to offset against his business income in future. It seems a good idea because you will be able to reduce the tax burden by using NOL when your business turns profitable … Read More “NOL (Net Operating Loss) not allowed to be used under certain situations” »
