Archive for May, 2012

Significant 2012 deferred tax write downs for Japanese companies

May 31, 2012  |  Developments, News  |  No Comments

News, information

On the 30th of May, 2012, the Nikkei Newspaper reported on the extent to which leading Japanese companies were required to mark down deferred tax assets for Japanese financial reporting purposes in the year to 31 March 2012.

Read More

2012 tax reform and reporting foreign assets

May 29, 2012  |  Individual  |  No Comments

One of very few remaining terraced rice fields which in Japan are known as "senmeidai" or one thousand step fields

The Japanese tax authorities have increased their focus on the audit of income or gains from assets that have not been declared to the tax authorities and which are held by Japanese tax residents outside Japan.

As part of this focus the authorities have widened their network of information exchange agreements and have focused on inheritance tax audits as well as audits of income tax filings.

Read More

2012 tax reform and reporting foreign stock compensation

May 28, 2012  |  Compensation, Individual  |  No Comments

A stall selling oden - a variety of small dishes often based on fish past usually eaten in the winter.

In recent years the Japanese tax authorities have been auditing the declaration by Japanese resident individuals of awards of share options, restricted stock awards or similar stock based compensation made to them by the foreign parent company of their Japanese employer.

Restricted stock awards with a vesting periods of around three to five years have often been part of the compensation of Japan based employees of foreign groups in the financial sector. Read More

Tax incentive zones for foreign investors

May 25, 2012  |  Incentives  |  No Comments

Mount Iwaki-san, a dormant volcano in Aomori-ken to the far north of the main island in Japan.

In June 1011 the Japanese Diet passed 2011 tax reform legislation delayed by the March earthquake including tax incentives for foreign investors.

Although not generous when compared with other Asian countries, this represents the first time the Japanese government has passed a meaningful set of tax incentives targeting inbound investment.

Read More