Happy New Year! We wish the very best to you and yours.
Hope you keep enjoying our mail magazine in 2011.
１. Accounting (Source: “Shukan Keiei Zaimu”)
～ Executive Compensation －27.11 Million JPY in Average for All Positions ～
According to PricewaterhouseCoopers’ survey, executive compensation has recovered from the decreasing trend caused by economic crisis and increased about two million JPY from the 2009 survey. For example, chief executives of First Section listed companies on the Tokyo Stock Exchange received 63.23 million JPY (increased by 3.6% from 2009) and directors received 25.67 million JPY (increased by 7.7% from 2009), in average.
In the medium- and long-run, executive compensation of Japanese companies had been in the rising trend untill today, and again the level of executive compensation has returned to its ordinary trends after this temporally decreasing due to the economic crisis.
２. Taxation (Source: “Zeimu Tsushin Magazine”)
2011 Tax Reform (Part1)
Japanese cabinet made a decision on 2011 Tax Reform.
The main revisions on corporate tax are as follows:
Corporate Tax Rate
The basic corporate tax rate applies to an ordinary corporation will be reduced from 30% to 25.5 % from its fiscal year starting on or after April 1,2011. The rate for small and medium enterprises and public interest corporations will be also reduced respectively.
Depreciation
The depreciation rate of the fixed rate method applies to depreciable assets purchased on or after April 1, 2011 will be reduced from 250% to 200%.
Loss Carried Forward
Except small and medium-sized companies, the maximum deduction of loss carried forward for corporations will be limited to 80% of the taxable income of its fiscal year before loss carry forward deduction. The loss carry forward period will be extended from seven years to nine years.
Allowance for Bad Debt
Application of allowance for bad debts will be limited to financial institutions and its related companies.
Donation
The limitation for deductible amount of general donations will be reduced by 1/2.
３. This Week’s Words of Wisdom (“GIFT ～The World of Famous E-Quotes～”)
“Life isn’t about finding yourself.
Life is about creating yourself. (George Bernard Shaw)”
Since old times in any places, there are many people going on the trip for finding themselves.
But after all, their answers would be always in themselves.