１. Taxation (Source: “Zeimu Tsushin Magazine”)
Ministry of Finance Japan announced on its website that Japan and Switzerland had signed a protocol amending their Tax Treaty.
It is scheduled to enter into force after Diet approval and domestic procedures.
The main points of the amendments to the existing treaty are as follows:
1) Provision on the exchange of information
The new provision will allow Switzerland, which has been committed to protecting the privacy of bank clients, to exchange banking information with its counterparts in not only criminal cases but also tax related
matters.
2) Reduced rates and exemption to investment income
Dividend
Stocks held at 50% or more : Tax exemption
Stocks held at 10% or more :5%
Royalty
Tax exemption
3) Limitation on benefit
LOB clause similar to that in the Japan-US Tax Treaty is included in the new treaty.
4) Adjustment on the taxation of pass-through entity
The residence-country taxation has been adjusted with respect to LLC and partnership.
5) TK(Tokumei Kumiai) Dividend
The new provision will allow a source country to tax TK dividend.
２. Accounting
No topics in this issue for Accounting.
３. This Week’s Words of Wisdom (Source: “English words of wisdom to enrich life”)
“Personality is shaped by one’s work and accomplishment, not by flowery speech”
(Albert Einstein)
I guess that politicians and persons of integrity had better chemistry in the past, but they really mix like oil and water in these days.
I think that the bad habit in recent years of giving up halfway through is pervading the society as a whole.