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Tokyo to speed up its assessment of real estate value for fixed assets taxation

The Tokyo Metropolitan Government (TMG) will enter talks with the Ministry of Internal Affairs and Communications (MIC) for a review of its procedures for assessing buildings to determine fixed assets tax. It will look into changing the current method to determine the costs of assets into a simpler method in order to give business owners a quicker insight into their tax liabilities. The aim is that MIC will change the evaluation standards, and introduce the simpler method nation-wide from 2020.

 

National Strategy Special districts more fiscally attractive for businesses

The Japanese Finance Ministry (MOFA) and the Cabinet Office (CAO) announced plans to give companies located in National Strategy Special districts (kokka senryaku tokku)  a 20% tax exemption on their corporate income.  The exemption is limited to newly established companies (within the last five years) designated by the country and those active in the district in areas such as agriculture and medical health.

LDP plan to halve fixed asset tax for capital investments SMEs for three years

Nikkei (J) reports on December 7th that the LDP Tax System Research Council is planning to half the fixed asset taxes (kotei shisanzei) for SMEs for a period of three years, starting in 2016.  The measure would cover purchases by SMEs of new manufacturing or processing machinery or equipment costing more than ¥1,600,000 (approx. €12.000) each and apply to total annual investments totalling more than ¥1 trillion (€7.5 million).

Change in SME definition for tax benefits to close loophole used by large companies

As part of its tax policy for 2017, the Japanese government  plans to revise the tax system that givies preferential treatment to SMEs. Currently, companies with a capital smaller than 100 million yen (€721,000) enjoy lower tax rates. Much larger companies Japanese companies have enjoyed preferential tax rates by keeping their capital base small. This loophole was thrust in the limelight, when struggling electronics giant, Sharp was reported to consider its capital to under the 100 million threshold to enjoy a more favourable tax climate, reserved for SMEs.

MIC considering changes to levy methods of corporate enterprise tax

Presently, company which have business facilities in multiple prefectures pay their corporate enterprise tax (houjin jigyouzei) in accordance with established “pro rata standards”  in each of the prefectures they are located. 

Foreigners allowed to set up companies independently

The Japanese government has announced it will relax the rules for foreigners who want to set up a company in Japan. 

Abe's Tax reform plan for 2015: The main points

On December 30, 2014 the ruling coalition of Liberal Democratic Party (LDP) and Komeito published their outline of their tax reform for 2015 with the expectation the Cabinet will approve the plan in January 2015. Given the solid majority the coalition enjoys in Parliament, the plan is likely to be implemented unaltered in the new fiscal year, starting in April. 

 The main points of the plan are as follows:

Abe's Tax reform plan for 2015: The main points

On December 30, 2014 the ruling coalition of Liberal Democratic Party (LDP) and Komeito published their outline of their tax reform for 2015 with the expectation the Cabinet will approve the plan in January 2015. Given the solid majority the coalition enjoys in Parliament, the plan is likely to be implemented unaltered in the new fiscal year, starting in April. 

 The main points of the plan are as follows:

 

Article: Legal Business Entities of Japan

Article written by Michio Matsuzaki.  

In the event that a Foreign Corporation launches a Business in Japan:

Representative Office:

Article: International Joint Ventures (IJVs) in Japan

Article written by Michio Matsuzaki.

I would like to discuss International Joint Ventures (IJVs) in Japan and the aspects of business opportunities and legal procedures in particular. First, let me begin by quoting some of the basics regarding IJV's from the Wikipedia page on IJVs:

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