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JAPAN: The new plan follows two previous stimulus packages totalling Yen 12 trillion.

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THREE AMAZI G PLACES TO START A BUSI ESS! What you need to know

Ireland

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Meeting and Greeting • Irish businesspeople are generally less formal and more outwardly friendly than in many European countries.

• Shake hands with everyone at the meeting.

• Handshakes should be firm and confident.

• Shake hands at the beginning and end of meetings.

• Make sure to smile!

• The Irish are generally rather casual and quickly move to first names.

• Business cards are exchanged after the initial introductions without formal ritual.

• Many business people do not have business cards, so you should not be offended if you are not offered one in return.

Communication Style The Irish have turned speaking into an art form. Their tendency to be lyrical and poetic has resulted in a verbal eloquence. They use stories and anecdotes to relay information and value a well-crafted message. How you speak says a lot about you in Ireland.

The Irish appreciate modesty and can be suspicious of people who are loud and tend to brag. They dislike a superiority complex of any sort. So, for example, when discussing your professional achievements it is best to casually insert the information in short snippets during several conversations rather than embarking on a long selfcentered outline of your successes.

Communication styles vary from direct to indirect depending upon who is being spoken to. There is an overall cultural tendency for people to view politeness as more important than telling the absolute truth. This means that you may not easily receive a negative response. When you are being spoken to, listen closely. A great deal may be implied, beyond what is actually being said. For example, if someone becomes silent before agreeing, they have probably said “no”. They may also give a non-committal response. This may be due to the fact that the Gaelic language does not have words for “yes” or “no”.

Generally speaking they do not like confrontation and prefer to avoid conflict, which they attempt to avoid by being humorous and showing good manners.

Tax System in Ireland The system of taxation in Ireland is broadly similar to the system of taxation in the United Kingdom. On an individual basis, employees are taxed through the [[PAYE|Pay As You Earn]] (PAYE) system, based on their income (less certain allowances) - the system is quite progressive with little or no tax on low earners and a high rate applied to top earners. For businesses, tax rates are among the lowest in the world with many firms enjoying corporation tax rates of between 10% and 12.5%. A large amount of central government tax revenue is derived from value added tax (VAT), excise duties and other taxes on consumption. The Irish tax system is primarily in place to pay for current expenditure programs, such as universal free education (including third level), free healthcare, social welfare payments such as old age pensions and unemployment benefit and public capital expenditure, such as the National Development Plan.

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Japan

Doing Business in Japan Meeting and Greeting

There is heightened sense of formality in Japanese interaction. When doing business in Japan, your suitability in respect to conducting business will be assessed during a first meeting, so always maintain a sense of professionalism.

The bow is an integral part of Japanese society. It is used when meeting, getting attention, to show gratitude, to express sympathy or as an apology.

The exchanging of business cards when doing business in Japan involves a degree of ceremony.

The card is seen to represent the individual, so should be treated with respect. Before travelling to Japan, ensure you have ample cards and have one side translated into Japanese.

Building Relationships When doing business in Japan a successful relationship with a Japanese colleague or client is

based on three factors: sincerity, compatibility and trustworthiness. Sincerity means that you are compromising, understanding and you want to conduct business on a personal level. Compatibility is established when you are seen to be concerned about the personal relationship, the well being of the company and not just focused on financial gain. Trustworthiness relates to the faith put in you to protect from loss face.

Communication When doing business in Japan clarify meanings and dig deeper for more information. The Japanese are implicit communicators. An explicit communicator assumes the listener is unaware of background information or related issues to the topic of discussion and provides it themselves. The Japanese however assume the listener is well informed on the subject and minimises information relayed on the premise that listener will understand from implication.

Meetings and Negotiations

on your company, service, product or proposal.

At a meeting you will always deal with a team as

The Japanese like dealing with quiet, sincere and

opposed to an individual. Each attendee will be

compromising individuals. Extroverts are seen as

there with a particular expertise so either bring as-

brash and arrogant. Early on in negotiations remain

sistance or be sure you are confident enough to

humble, indirect and non-threatening. Do not dis-

handle all the questions you will receive.

agree openly, do not put people on the spot and al-

You will greet the most senior employee first and

ways employ diplomatic language when doing

then others in descending order. The senior em-

business. Be sure to hold off concessions till the

ployee will be there as a ceremonial representative

end of proceedings. If made early your integrity will

of the company. The lesser ranking attendees will

be questioned.

usually do the talking or negotiating.

Silence is considered a virtue. If things go quiet

The Japanese are very detail orientated. Expect

when doing business in a meeting then do not

lots of questions and lots of questions repeated in

panic. Reflection is taking place. Silence may be

different ways. Be sure to have the answers as the

also be accompanied by the closing of the eyes.

failure to do so will look unprofessional. Be sure to

Never interrupt or break the silence.

bring as much information as possible, in writing,

Tax News April 2009

Japan's prime minister Taro Aso announced on April 10, 2009 a new historic $150 billion (Yen 15 trillion ) stimulus package. The new plan follows two previous stimulus packages totalling Yen 12 trillion.

Presently Japan faces its worst recession since World War 2, mainly due to the sharp decline in exports to the U.S. The new package which has to be approved later in April includes, inter alia, benefits granting a $ 2,500 bonus to people trading old cars 13 years or more, benefits towards unemployment,

companies in crisis, infrastructure, health and welfare.

The prime minister also supports dramatic tax reforms, including increase of the consumption tax.

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Spain

pain is a country, which in the last decades after

In Spain there are several different legal forms you

entering the EU in 1984 has improved its econ-

can use to start-up a business. The legal form de-

omy and infrastructure significantly. The coun-

pends on the size of the company, the owners and a

try still has a GNP (Gross National Product) below

number of other factors. The most common form is

S

European average but many sec-

the Sociedad Limitada (S.L.), which is

tors in Spain are in expansion and

similar to a limited company in other

the number of foreigners who starts

countries. The advantages of a S.L. are

up a business in Spain is increas-

the minimal capital needed to start up

ing.

the company (3003â‚Ź) and the limited liability to the owners. In nearly all cases

If you wish to start a business in

it can be recommended for foreigners

Spain there are many things you

who wish to set up their first business in

need to take into consideration.

Spain to choose the form of an S.L..

Apart from the internal factors there are many external factors (includ-

Depending on the type of business you

ing the Spanish authorities and

are planning to start the legal aspects

legal issues) that will have influence on whether your

will be more or less complicated but it is recom-

company is going to succeed or not. Spain is known

mended that you seek some kind of legal advice at

as a very bureaucratic country and to start a busi-

this stage. Otherwise you might spend a lot of time

ness is not different.

and resources finally finding out that your idea is not possible to accomplish because of legal barriers.

Relationships & Communication . The Spanish prefer to do business with those they know and trust. . It is important that you spend sufficient time letting your business colleagues get to know you. . Once you develop a relationship, it will prevail even if you switch companies, since your Spanish business

must be adept at discerning body language. . Spaniards are very thorough. They will review every minute detail to make certain it is understood. . First you must reach an oral understanding. A formal contract will be drawn up at a later date. . Spaniards expect both sides to strictly adhere to the terms of a contract.

colleagues' allegiance will be to you rather than the

Tax News: SPAIN

company you represent. . Face-to-face contact is preferred to written or tele-

If your company is incorpo-

phone communication.

rated in Spain, it will be

. The way you present yourself is of critical importance

when

dealing

taxed on all its worldwide

with

profits, earned and un-

Spaniards.

earned, including in-

. It is best to display modesty when de-

come from investments

scribing your achievements and accom-

and asset transfers, at a rate of

plishments. . Communication is formal and follows rules of protocol. . Avoid confrontation if at all possible. Spaniards do not like to publicly admit that they are incorrect. . Trust and personal relationships are the cornerstone of business. . Spaniards, like many societies, are concerned that they look good in the eyes of others and try to avoid looking foolish at all times.

Business Negotiation . Spaniards place great importance on the character of the person with whom they do business. . Hierarchy and rank are important. You should deal with people of similar rank to your own. . Decision-making is held at the top of the company, since this is a hierarchical country. You may never actually meet the person who ultimately makes the decision. . You may be interrupted while you are speaking. This is not an insult, it merely means the person is interested in what you are saying. . Spaniards do not like to lose face, so they will not necessarily say that they do not understand something, particularly if you are not speaking Spanish. You

35 per cent. However, if you qualify as a small or medium-size company, you will pay a reduced rate of 30 per cent and if you happen to set up a business in the Canary Islands, you will benefit from their special company taxation system and may only have to pay between 1 and 5 per cent corporation tax, depending on whether you comply with the required conditions.