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Director’s compensation in Japan

In case that salary and bonus except for retirements and severance allowances was paid to company director, the salary and bonus are deductible on the following cases for corporate tax purposes in Japan. This is to avoid adjusting company’s profit level by director’s...
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Provision for bad debts

The provision for bad debts might refer to the balance sheet account or also known as the allowance for Bad Debtts. The allowable amount of a plan for bad debts is under the 2 provision below:   Specific doubtful receivables provision A provision for a limited range...
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Bad debt expense in Japan

  The amount can be deducted as bad debt expense if following facts incurred.   Facts Amount of bad debt expense Approval of recovery plans in accordance with Corporate rehabilitation law The amount to be amortized Approval of special liquidation proceedings under the...
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Valuation of securities in Japan

Acquisition cost of securities is the total or whole of the price compensated and secondary expenses in the case that we acquire it by purchase or by contribution. When the shares are subscribed at a value below market price, the market value is realized as...
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Management service fees in Japan

In case subsidiary is operating with the foreign parent company, there is a situation that the foreign parent company will contribute management services to the subordinates, such as assigning expatriate, sending marketing, technical, financial and administrative...
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Entertainment expense in Japan

  Entertainment expenses for a year in excess of the following certain limits are not accepted:   Size of Company Deductible Amount A small and medium sized company JPY 8 million or 50% of eating and drinking expenses Other than small and medium – sized company 50% of...
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Valuation of inventory in Japan

The amount of inventories must carry the whole actual amount of acquisition of inventories. Purchase or the manufacturing amount discrepancies must accustom and listed to the books of account. The valuation of inventories at the end of each fiscal year must be formed...
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