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