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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  • “YOOX’s business partnership with Nagamine & Mishima Office started in 2004, when the Italian company landed in the Japanese market.

    Nagamine & Mishima Office worked very closely on helping YOOX to set up the corporate, accounting and tax procedures according with the local requirements.

    In the these 10 years of operations in Japan, Nagamine & Mishima Office has always supported YOOX to reach its goal, with a very professional and proactive approach and a unique working way: efficient, kind, timely and careful to details. We would recommend them to anybody! “

    Paolo Bedodi, Financial Controller

    YOOX GROUP