Nagamine & Mishima Consulting

Accounting practice since 1989

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Retained Earning Carried Forward

Retained Earnings Carried Forward

If you have invested in Japan and are thinking about dividends, you will need to monitor Retained Earnings Carried Forward for your Japan investment. Under the Japan Company Act, a company is required to reserve 10% of gross amount of dividends. In order words, a company can provide dividends up to 10/11 of the Retained Earnings. Please note that in principle, a company has obligations to withhold 20% of the gross dividends and make payments to the tax office the following month on the 10th day. Tax treaty on withholding on dividends differs from country to country so consult with your tax accountant on scenario planning for dividend arrangements.

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People are Talking

  • “I had the privilege of working with Nagamine and Mishima over the last 1 year and has been most impressed with their level of professionalism and standards.  They always provide us with good advise on the local accounting requirements and standard.  Also they are always on time in their accounting report submission and have always met our needs for adhoc requests.  This arrangements best suit our needs and allow us not to invest in our own accounting headcounts as we have an accounting partner that meet our needs fully.”

    Chia Sin Jin, Finance Director

    Unity Technologies