The Japanese limited liability partnership (in Japanese the ‘有限責任事業組合’ or ‘yuugen sekinin jigyou kumiai’ and below the ‘LLP’) is a relatively new Japanese entity form that was introduced in 2005.
Formed by the ‘Law Concerning Contracts for Limited Liability Business Partnerships’ (in Japanese the ‘有限責任事業組合契約に関する法律’ or ‘yuugen sekinin jigyou kumiai keiyaku ni kansuru houritsu’, link here in Japanese and below the ‘LLP Law’) and similar to the LLP form Read More
In May 2005, the Japanese ‘Law Concerning Investment Trusts and Investment Companies’ (link in Japanese – the ‘投資信託及び投資法人に関する法律’ or ‘toushi shintaku oyobi toushi houjin ni kan suru houritsu’, referred to below as the ‘ITL’) was revised to allow entities covered by the law to invest in real estate.
The law also introduced a new entity, the ‘Japanese Investment Company’ (in Japanese ‘投資法人’ or ‘toushi houjin’ abbreviated below as ‘JIC’) Read More
The ‘TMK’ (in Japanese the ‘特定目的会社’ or ‘tokutei mokuteki kaisha’ )、a special purpose entity commonly used in Japanese real estate transactions, is regarded as having a corporate nature for Japanese tax purposes and hence is taxed as a corporation rather than as a fiscally transparent entity.
However, a number of special tax provisions apply to the entity introduced in order to help promote the securitization of assets held under the TMK structure. Read More
The Japanese authorities first took steps to help encourage liquidity in the Japanese real estate market through the introduction of a conduit entity that could be used in real estate transactions prior to 2000, when the ‘Law Concerning the Liquidation of Specified through a Special Purposes Company’ (in Japanese the ‘特定目的会社による特定資産の流動化に関する法律’ or ‘or tokutei mokuteki kaisha ni yoru tokutei no shisan non ryudouka ni kansuru houritsu’ and referred to be low as the ‘SPC Law’) Read More
This article discusses the basic Japanese accounting treatment of membership of Japanese civil law partnership, in Japanese a nin’i kumiai and below an NK.
An overview of the legal aspects of an NK arrangement can be found in this article, which also includes defined terms or abbreviations used here.
A description of the tax treatment can be found in this article.
For Japanese tax purposes Japanese civil law partnerships (in Japanese nin’i kumiai, referred to below as ‘NK’s) are treated as fiscally transparent.
NKs themselves are not taxed as separate entities. Instead, the members of the NK are subject to taxation on the income treated as attributable to them. Read More