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Corporate tax

Devaluation loss in Japan

Even though there are a write-down of assets or write-down to market value in the case of damage because of disaster or obsolescence of assets such as fixed assets and inventories, we are not allowed to make the loss deductible in terms of taxation in Japan.
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Stock option in Japan

If a company issues stock options in compensation for services will be deductible at the timing when individual income tax is imposed on the income by stock options. If the stock option is non-qualified, the individual income is incurs at the stock option. If the...
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Taxation for donation and contribution in Japan

Donation and contribution are partly expensed as shown on the table below:   Donation and contribution Deductible amount To organization designated by the government All of the amount To organization which promotes specified public interest 3.125% of taxable income +...
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Foreign dividend exclusion in Japan

1. Tax treatment of dividends from foreign subsidiaries A Japanese company holding a foreign subsidiary is mostly entitled to the foreign dividend exclusion. The tax treatments under the foreign dividend exclusion are: 95 percent of dividends from a Foreign Subsidiary...
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Tax consolidation in Japan

Tax consolidated group Consolidated tax return filing system is implemented through election to a Japanese domestic parent company and its domestic subsidiaries with 100% controlled relationships. Tax consolidation rules The following rules below are enforced to use...
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