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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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Hometown tax (Furusato nozei) in Japan

There is one charitable activity that has proved a hit in Japan through recent years, it’s the “furusato nozei” or hometown tax. Hometown tax was originally suggested year 2007 by Japan Prime Minister Shinzo Abe but officially acknowledge by year 2008 in which...
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Tax return and tax payment in Japan

Final tax returns Under the final tax returns, the company is obligated to file the final returns and make payment in a period of two months after the end of its fiscal year even if it has not positive income for the fiscal year. In addition, normally foreign company...
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Exclusion from taxable income in Japan

Companies in Japan need to adjust following items on their corporate tax return if the financial statements are prepared in accordance with accounting GAAP.   Dividend received from Japanese companies in Japan Dividends collected from other Japanese companies are not...
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Tax treaties in Japan

At the instant of October 1 2015, Japan engages the tax treaties with countries and regions as below;   Australia Austria Bangladesh Belgium Brazil Brunei Darussalam Bulgaria Canada China Czechoslovakia (Czech Republic and Slovak Republic) Denmark Egypt Fiji Finland...
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