CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Treasury And IRS Clarify Position On Japanese Business Entities

Treasury And IRS Clarify Position On Japanese Business Entities

by Glen Shapiro, LawAndTax-News.com, New York

21 December 2005


The US Treasury Department announced on Monday that in conjunction with the Internal Revenue Service, it has issued a revenue ruling that addresses the US federal tax classification of certain Japanese business entities.

The revenue ruling responds to numerous enquiries regarding the effect that newly enacted Japanese laws have on the existing Yugen Kaisha (YK) business entity.

Under the new Japanese laws, all existing YKs will be converted into Tokurei Yugen Kaisha (TYK) business entities, and will be considered a type of Kabushiki Kaisha (KK) business entity.

Generally under the entity classification regulations, which apply for US federal tax purposes, a business entity is eligible to elect its tax classification (partnership, corporation, or entity disregarded as separate from its owner). However, certain business entities, such as the Japanese KK, are always considered corporations. Under the regulations, a Japanese YK business entity is an entity that is eligible to elect its US federal tax classification.

The revenue ruling concludes that even though a YK that becomes a TYK under the new Japanese law will be considered a type of KK business entity under such law, it will, for US federal tax purposes, remain an eligible entity that is eligible to elect its US tax classification.


To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »