Archive for November, 2010

Individuals becoming non-Japanese resident

November 4, 2010  |  Court, Individual  |  No Comments

Japanese judicial decisions

The Japanese Tax Tribunal web site summarizes the results of an appeal dated 10 September 2009 concerning tax residence for an individual who went to work outside Japan while his family, whom he visited relatively regularly, remained living in Japan. Read More

A mini case-study in residual profit split transfer pricing

November 3, 2010  |  Transfer Pricing  |  No Comments

A beautifully taken picture of an unpainted JAL cargo plane taking off from a US airport.

A Tax Tribunal appeal case (the ‘Appeal’) reported on 28 June 2010 provides a useful ‘mini case study’ in the application of a residual profit split transfer pricing methodology.  The Appeal reviewed the identification of key intangible assets, issues in the choice of an appropriate third party comparable and the use of an appropriate allocation factor in the method concerned.  This article reports the facts and findings in the case concerned. Read More

Proposed extension of period to re-file a tax repayment claim

November 2, 2010  |  Developments, News  |  No Comments

News, information

On 2 November 2010 the Nikkei Keizai Shimbun reported on a 2011 tax reform proposal to extend the period allowed for tax payers to resubmit tax returns that request a repayment of tax. Read More

The definition of Japan source interest income

November 1, 2010  |  Japan Source Rules, Withholding tax  |  No Comments

Okonomiyaki: A Japanese disk made of cabbage mixed with other flavouring and binding ingredients. Often cooked by the restaurant patrons themselves.

Where a foreign company earns income with the economic nature of interest (referred to below as ‘Funding Income’) from lending to a business carried out in Japan, investing in a bond with a Japanese issuer or from a similar transaction (referred to below as a ‘Funding Transaction’), Japanese withholding tax (‘WHT’) will apply if the income is treated as falling within defined categories of Japan source income. Read More