Nagamine & Mishima Accounting Office

Accounting practice since 1989

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9th Edition US LLCs, IFRS, Montaigne

December 4, 2009

1. Taxation (Source: “Zeimutsuushin”)

Japanese Corporation Tax Law treats US LLCs as legal entities. Previously, LLCs, which apply pass-through taxation in the United States, are not taxed even if they are Specified Foreign Subsidiary Companies in Japan’s tax haven (CFC) rules, as LLCs themselves do not have retained earnings.

As a result of the recent tax haven reform, dividends of surplus from Specified Foreign Subsidiary Companies, which have been deductible from LLCs’ taxable income, becomes non-deductible. Accordingly, the recipient domestic corporations investing in LLCs are required to add LLCs’ income to their own income whether LLCs distribute retained earnings to their members or not.

2. Accounting (Source:”Keieizaimu”)

ASBJ has reached a tentative agreement on introduction of Comprehensive Income Concept, which is provided by IFRS and aims to apply it from the fiscal year ending March 2011.

56 listing companies in Japan are planning an early adoption of IFRS and 8 listing companies are currently applying IFRS to prepare their financial statements. More specifically, among those 56 companies, 1 company is planning the adoption in 2009 and the rest of them are in or after 2010.  

3. This Week’s Words of Wisdom

“Age imprints more wrinkles in the mind than it does on the face.”(Montaigne)

 

I feel that this saying means a lot.

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People are Talking

  • “The launch of Berry Bros. & Rudd Limited’s Japanese branch in November 2008 required the support of a knowledgeable, reliable and professional accounting firm and we were therefore fortunate to find all of these qualities working with the Nagamine & Mishima Accounting Office.

    Since assisting us with the initial set-up, N&M have managed our monthly and year-end Accounts as well as handling our Payroll, ensuring compliance with Tax regulations and filing annual Tax Returns and supervising year-end stock counts.  They respond to all queries in a very timely manner, their work is of a high consistency and their approach friendly.

    With N&M assistance we have confidence in the controls and integrity of the accounting information for our Japanese operations.”

    Philip Duggan, Finance Director

    Berry Bros. & Rudd Limited Japan branch