1. Introduction Due to the effects of the COVID-19 pandemic, tax audits on new businesses were effectively postponed until September 2020. As the state gradually engages again with economic and social activities, tax audits also properly resumed in October 2020. In this article, we would like to take a look at how tax investigations are…
In Japan, companies are primarily determined according to the amount of invested capital funds as to whether they can be classified as SMEs (Small and medium-sized entities). A company established in Japan can benefit from a variety of tax-related procedures in the event it becomes a small and medium-size entity. Consequently, a company incorporated in…
● Necessary Reports to Tax Office etc. in connection with the establishment of a Corporation in Japan Report of Establishment of Corporation (National Tax, Local Tax) Reports regarding the establishment of the corporation (including the Japanese subsidiaries of foreign companies) must submitted to the competent tax office (national tax) and prefectural/ward/municipal tax offices (local tax)….
1. Introduction The time for this year’s yearend adjustment has come. Due to the widespread application of telecommuting and remote work due to the impact of COVID-19, this year’s yearend adjustment is expected to be more difficult than ever before considering its traditional paper-based procedure of distributing and collecting applications. Under these circumstances, the digitalization…
● Annual Schedule for Filing of Tax Returns and Social Insurance Procedures Some due dates for the filing of corporate tax returns and payment of corporate taxes and the procedures for social and labor insurance are determined by the company’s fiscal year, while others are determined regardless of the fiscal year. The following due dates…
● Tax Returns for Corporations 1. National Corporate Tax National corporate tax is imposed on the taxable income of a corporation. National corporate tax rates vary depending on the amount of capital of the corporation. The same applies among Japanese subsidiaries of foreign companies, foreign corporations, and Japanese branch of foreign corporations. ① For small…
Introduction While companies whose business environment has been negatively impacted by the COVID-19 often opt to take advantage of loans and subsidies, there is a growing trend, particularly among small and medium-sized companies, that address the difficulties they face through business succession. Even before the impact of COVID-19, small and medium-sized enterprises (SMEs), which account…
Introduction Due to the effects of the COVID-19 pandemic on the economy, many companies have resorted to reducing their officers’ remuneration to offset any decrease in sales, as well as to ensure that their other employees also remain stable. On the other hand, other companies have done the opposite, increasing their officers’ remuneration to compensate…
Introduction On April 30, the Japanese government approved an emergency economic response plan to address the COVID-19 situation in Japan. Continuing from the previous article, we will look at the remaining tax relief measures. Specific details regarding tax relief measures under the emergency economic measures as response to COVID-19 Among the 12 tax measures under…
Introduction In response to the spread of COVID-19, the Japanese Cabinet approved emergency economic stimulus measures amounting to 117.1 trillion JPY (48.4 trillion JPY in fiscal expenditure), as well as “Taxation Measures Part of the Emergency Economic Measures to Cope with COVID-19”. These support measures, as well as the related bills were enacted, promulgated, and…
Introduction On December 12, 2019, the Outline of the FY 2020 (Reiwa 2) Tax Reform was released. Included in the Outline are tax reforms that come from different perspectives. Reforms with the goal of realizing sustainable economic growth in mind include measures on open-innovation activities, measures to encourage investments and wage increases, revisions to the…
Introduction The Individual Number System, which was introduced in October 2015, began later issuing the Individual Number Cards starting January the following year. In the span of four years since then, however, no more than 15% of Japan’s population has been issued their Individual Number Cards (as of November 2019 according to the Ministry of…
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