Nagamine & Mishima Accounting Office

Accounting practice since 1989

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Provision Fund for Bad Dept

Provision Fund for Bad Dept

Regardless of accounting policies a company may have, Japan Tax Code has severe limitations on what they allow as provision fund for bad debt in dealing with accounts receivable. Depending on the status of legal liquidation, limit is decided. The most common legal proof is notice from lawyers and court which states the condition of debtor. The date of this notice will determine the timing of allowing a provision fund for bad debt. Usually, this notice from lawyers and court are received by the sales personnel. Guidance to sales personnel to pass this notice to the accounting personnel in charge will be essential for timely process. You should always consult with the tax accountant on the timing and conditions when making provisions for bad debt.

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People are Talking

  • “Nagamine was instrumental in setting up our first Japanese entity in 2008, allowing us to hit the ground running when we arrived.

    Since then they have been crucial in the smooth running of our business. We use them to organize our bookkeeping, payroll and social insurance, tax reports and returns.

    Their bilingual staff are a pleasure to deal with and are always going above and beyond their usual tasks when we need extra help. We find them extremely reliable and we look forward to working with them into the future.”

    Meltwater News Japan, Meltwater group

    Meltwater News Japan