 |
|
|
| Information | ||
|
||
| Latest Newsletter | ||
|
||
| Firm Newsletters | ||
|
||
| US/Jpn Social Security | ||
|
||
| US/Jpn Tax Treaty | ||
|
||
| Top Page | ||
|
|
|
|
||
|
|||||
|
|||||
| Tax Alert - Directors' Compensation | |||||
|
|||||
|
Prior to the 2006 Tax Reform, bonuses and/or any irregular compensation was considered non-deductible.
However, generally speaking, new guidance requires the following conditions to be satisfied (for non-public companies in Japan) for deductibility: 1. Compensation may only change once a year and only upon approval from the Board of Directors' meeting. 2. The change must occur within three months of the fiscal year (ie. by March 31 for calendar yearends). For details on the above, please refer to KPMG's website (English:taxnl200611_e.pdf, Japanese:taxnl200611_j.pdf). If you would like additional advice on your company's director's package, please contact us. |
|||||
|
|||||
| Financial Instruments and Exchange Law | |||||
|
|||||
|
On October 10, 2006, the Financial Services Agency ("FSA"), released details of the newly created Financial Instruments and Exchange Law
which abolishes and/or amends the Securities Exchange Law and other financial laws.
This Law was approved during the 164th Diet Session held on June 7, 2006.
Details are at http://www.fsa.go.jp/en/policy/fiel/20060621.pdf. |
|||||
|
|||||
| J-SOX | |||||
|
|||||
| On January 31, 2007, the FSA released Implementation Standards for Evaluation and Audit of Internal Control over Financial Reporting (i.e. Japanese version of Sarbanes-Oxley ("SOX")) were released. Rather than auditors issuing a direct opinion on the effectiveness of internal control over financial reporting (as in US SOX), auditors are required to issue an opinion on management's evaluation of the effectiveness of internal control. This requirement will take effect for all companies publicly listed in Japan from the April 1, 2008 fiscal year. | |||||
|
|||||
| Disclaimer | |||||
