Posts Tagged ‘2012 tax reform’

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.

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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