Articles

Publication of Revised Accounting Guidelines for SMEs

The Committee for the Preparation and Review of Accounting Guidelines for Small and Medium-sized Enterprises (hereinafter referred to as the “Committee”), which was established primarily by the Japanese Institute of Certified Public Accountants (JICPA), the Japan Federation of Certified Public Tax Accountants’ Associations, the Japan Chamber of Commerce and Industry, and the Accounting Standards Board of Japan, reviewed the Accounting Guidelines for Small and Medium-sized Enterprises (hereinafter referred to as the “SME Accounting Guidelines”) and, at its meeting on September 19, 2025 and approved the publication of the revised Accounting Guidelines for Small and Medium-sized Enterprises (hereinafter referred to as the “Revised SME Accounting Guidelines”).

UAE Economic Substance: The Key to Controlled Foreign Corporation (CFC) Compliances in Japan 

Existing or Proposed subsidiaries of Japanese Companies need to meet “Economic Substance Requirements” so that the Japanese Parent Company can demonstrate that it qualifies for an exemption from Japan’s Tax-Haven Rules.

Why it Matters

To avoid having any income earned via the UAE subsidiary included in its Japanese parent company, and taxed under Japan’s tax rate, the UAE entity must demonstrate real economic presence in the UAE — by merely stating that it is not a shell company or that it does not generate a passive income is not sufficient. Having real economic presence in the UAE strengthens your exemption position under Japan’s Tax Haven Rules – Controlled Foreign Corporation (CFC) Rules.

HLS Global Expands to Singapore 

October 1, 2025

HLS Global Expands to Singapore 

Tokyo, Japan / Singapore – HLS Global Co., Ltd. (“HLS Global”), a leading international accounting, taxation and business advisory firm, today announced the expansion of its global presence to Singapore by establishing its new subsidiary, HLS GLOBAL SEA PTE. LTD. (“HLS SG”), in Singapore.

This expansion underscores HLS Global’s commitment to serving multinational companies across Southeast Asia. HLS SG will focus on providing a comprehensive range of services, including accounting, audit, tax, due diligence, post-merger support, ESG advisory, CFO services, and financial digital transformation.