Consumption Tax Adjustment on the Change of Use of Fixed Assets
JAPAN TAX BULLETINFY2026 JCT Reform Update: Extended 8-Year Transitional Deduction Schedule and Reduced JPY 100M Cap for Non-Registered Supplier Purchases
Contents
On 11 February 2020, as part of tax base erosion and profit shifting project, the OECD released final Transfer Pricing Guidance on financial transactions. The Guidance mainly addressed regarding the intra-group loans, cash pooling arrangements, financial guarantees, and captive insurance.
This article aims to summarize the key chapters of the Guidance and the possible impact the Guidance may have on transfer pricing arrangements for financial transactions within a multinational enterprise group.
...To read the rest of the article, click on the PDF file below.
Related content
Revisions to Japanese Consumption Tax Transitional Measures under the Qualified Invoice System
JAPAN TAX BULLETINUnder Japan’s consumption tax rules, input tax credits for "adjustable fixed assets" are credited upon acquisition. However, if the use of assets changes within three years, an adjustment is required.
Key Differences Between Accounting and Tax Treatment of Revenue Recognition
JAPAN TAX BULLETINRevenue recognition is a key performance metric affecting financial figures. This article explores examples of differences between accounting and tax treatment in Japan.
Subscribe to receive our publications
If you are interested in receiving our latest insights, You can sign up to our mailing list.