１. Taxation (Source: “Zeimu Tsushin Magazine”)
(1) Expired tax losses will become tax deductible for a company to dissolve on or after October 1st, 2010 if it no longer holds remaining assets. It is expected that actual balance sheet based on disposal value prepared at the end of every business year during the liquidation period is used to determine their asset values.
(2) Ministry of Finance recently announced that Japan and Hong Kong have reached a basic agreement on their first tax treaty.
According to the tax treaty, the withholding tax rates imposed on investment income between the two countries will be lowered as follows:
Dividends 5% between a parent company and its subsidiary
10% other than those listed above
Interests 10%
Royalties 5%
It remains an open question whether it will contain a mutual agreement procedure article.
2. Accounting (Source: “Keiei Zaimu Magazine”)
The individual disclosure of director compensation amounting to more than 100 million yen in total including the ones from consolidated subsidiaries will be applied to the security reports for
the business year ended March 2010, despite long-standing opposition from business world.
3. This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)
“Fine words are no virtue.”(Analects of Confucius)
This saying is well known and especially famous in Analects of Confucius.
I agree that a slick talker is often untrustworthy.