Follow on Google News News By Tag * Japan new reporting requirement * Japan tax authorities * Japan stock-based compensation * Japanese subsidiary * Japan Stock * More Tags... Industry News News By Place Country(s) Industry News
Follow on Google News | Japan Issues New Reporting Requirement for Stock-based Compensation Offered by Foreign Employers: Naapan tax authorities recently announced new reporting requirements for foreign stock-based compensation received by resident employees and directors of certain entities in Japan. Please visit Nair and co website to know more information.
By: Nair & Co. Japan’s new stock options reporting requirements are part of the 2012 Japan tax reform legislation and aim to tighten the noose on what authorities fear is growing non-compliance with declaration of stock-based compensation in Japan by individual tax payers. Japan Stock-based Compensation Reporting: New Requirements A Japanese subsidiary or branch must prepare and submit to the tax office, the prescribed form, by March 31 of the subsequent year: • When a director or an employee of a Japanese subsidiary of an overseas company, where half or more of the outstanding shares in the Japanese subsidiary are directly or indirectly obtained by the overseas company, or • When a director or employer of a branch office in Japan of an overseas company receives stock-based compensation. Any form of stock, cash or other benefits offered to employees and directors in Japan and based on the following rights (established under a contract between the director or the employee and foreign establishment) • Privilege to get stock for no consideration or at a preferable cost, • Privilege to get cash or other benefits equivalent to stock value or dividends from stock, • Privilege to receive stock, cash or other benefits in situations where the stock price, performance of the company, or other indicator accomplishes a pre-determined goal. The new regulations apply to local employees as well expatriates who have been moved by the Japan entity from other locations. Japan Stock-based Compensation Reporting: The Background Under present regulations: • Japan resident employees and directors who receive compensations including wages, cash-based, share-based incentives, and allowances through an offshore establishment are not subject to the Japanese withholding requirements. • For residents, employers are not required to report offshore compensations to the Government that has been taking radical measures to improve Japan’s tax landscape and make doing business in Japan easier for foreign businesses. To get more details on this issue or about doing business in Japan please email media@nair-co.com Get the latest press releases and updates on international tax, HR, Finance, compliance and other legal news at Nair & Co. Industry Alerts. End
|
|