Office Supplies With advancement of technology, many office devices had become affordable. Purchase price has gone down so that many devices are not subject to depreciation. The tax code in Japan allows a one-time expense write off for devices which unit price is below JPY 100,000. The key here will be the unit price. Ask… [Read More]
Advertising Marketing
Advertising Marketing Advertising fees are generally paid in advance as prepaid expenses. In preparing consumption tax returns, timing of claiming as consumption tax receivables is at the time service is provided. Advertising fees are highlighted in one aspect for income tax purposes. Japan tax code restricts income tax deductibles by deeming certain transactions as entertainment… [Read More]
Prepaid Expence
Prepaid Expence Expenses such as below are in principle recognized based on the service period. 1. Insurance 2. Rent 3. Interest But exceptions apply to those expenses meeting certain condition which allows expense recognition on cash basis. In other words, even if the payment is upfront, a company can claim the full payment amount as… [Read More]