- Japan tax bulletin
- The blue tax return system and its benefits
- Research and development tax credits under Japan tax law
- Tax Procedures at the time of Dissolution and Liquidation
- Treatment of estimated expenses under Japan tax law
- Size-based business taxation in Japan
- Revised Transfer Pricing Documentation requirements
- Penalty taxes
- Valuation loss on assets
- Taxable enterprises under Consumption Tax Law
- 2017 tax reform proposal in Japan
- Tax Qualified Corporate Reorganizations under Japan tax law
- 2016 Tax reform
- Corporate tax filing in Japan
- Entertainment expenses
- Effect of the reverse-charge mechanism on foreign enterprises
- Restricted Stock
- Family Corporations under Japan tax law
- The treatment of donations (kifukin) under Japan tax law
- Filing requirements for the Country-by-Country report and Master File for a Specified Multinational Enterprise Group
- Procedures for claiming tax treaty benefits
- Restrictions on interest expense deduction
- Proposed change to the transfer pricing documentation rules
- Group taxation
The subject of donations is a complicated topic under Japan tax law,and their scope and deductibility can have an extensive impact certain transactions. The deductibility of a donation (kifukin) depends on the nature of the recipient and its definition under tax law is much broader than its literal meaning
Filing requirements for the Country-by-Country report and Master File for a Specified Multinational Enterprise Group
In response to BEPS Action 13, a three-tiered transfer pricing structure was introduced into domestic tax laws in the 2016 tax reform.
Japan has concluded 65 tax treaties which apply to 96 jurisdictions (shown in the Annex). A taxpayer wishing to claim treaty benefits is required to go through certain procedures provided for in the Law concerning special measures to the Income tax law, the Corporation tax law and the Local tax law in relation to executing tax treaties.
There are two sets of rules which disallow interest paid to foreign related companies. One is the thin capitalisation rule and the other is the earnings stripping rule. Both rules are targeted rules under BEPS Action 4. A fixed ratio approach where the general deduction of interest expense is restricted to a certain percentage of EBITDA under BEPS Action 4, has not been introduced.
In the 2016 tax reform proposal, an amendment to the transfer pricing documentation rules was introduced. The proposal is to make the transfer pricing documentation rules consistent with BEPS Action Plan 13.
A 100%-controlled group with a domestic parent company is allowed to file a consolidated tax return for national corporate income. The consolidated filing system cannot be used though, when the parent company is a foreign company. Where a 100%-controlled group does not file a consolidated tax return, there are a few special rules on transactions betweendomestic members.
Japan tax Newsletter Archives