This case concerns a Japanese company which claimed a deductible impairment loss on shares in a recently acquired US subsidiary which it had re-capitalized. The facts of the case reflect what is probably a relatively common commercial situation. Read More
The Japanese Civil Code (‘CC’) defines the Japanese partnership form, the Nin’I Kumiai. Not to be confused with the Tokumei Kumiai defined under the Japanese commercial code, the legal form of the Nin’I Kumiai is more similar to a conventional US or UK partnership.
The table linked to this article summarizes the withholding tax rates on royalties under Japan’s different tax treaties.
The withholding tax rate under Japan’s model tax treaty is 10 per cent. More recent tax treaties Read More
The issue of determining whether or not an item of income has been “paid” for withholding tax purposes, thus triggering the obligation to remit the taxes withheld to the authorities within an allowed time limit, is an issue common to all withholding tax systems.
On 16 October 2009 the Osaka High Court determined, in favor of the tax authorities, an appeal from a taxpayer concerning the timing of tax deductibility of bonus payments. Read More
Under Japanese tax law, Japanese companies are taxed on their worldwide income while foreign companies are taxed only on their Japanese source income.
This article explains when a foreign company will suffer Japanese withholding tax or when it has an obligation to file a Japanese corporate tax return. Read More
Japan has a very broad general tax anti-avoidance rule that can be applied to certain defined classes of company (referred to below as ‘Anti-Avoidance Rule Companies’ or ‘AAR Cos’). This is Article 132 of the Japanese Corporation Tax Law.
The scope of the companies to whom this rule can apply Read More
This article is the first in a series that outlines the structure, target income and administration of the Japanese withholding tax system. These articles will form a foundation for understanding more complex Japanese withholding tax issues arising in an international context.
Japan has an extensive system of withholding taxes (‘WHT’) imposed on different types of income. Read More
Whether or not a non-Japanese entity is fiscally transparent for Japanese tax purposes is often a key issue for the taxation of both Japanese inbound and outbound investment. Read More
The documents made public by the Finance Tax Research Group (below ‘FTRG’), a tax committee within the Japanese Ministry of Finance, include a listing of topics that the committee considers important Read More