1. Introduction The share delivery system is a newly created reorganization scheme under the Companies Act. This law partially came into effect in March 2021 as a revision to the Companies Act. This law established the share delivery system, and the corresponding amendments to the tax law were included in the 2021 tax reform. In…
Introduction The Accounting Standard for Fair Value Measurement (hereinafter referred to as “Fair Value Measurement Standard”), released in 2019, has become standard treatment applied for fiscal years beginning on or after April 1, 2021. Since this standard is based on IFRS 13, there may be some expressions and terms that may initially seem difficult to…
Introduction The “Accounting Standard for Disclosure of Accounting Estimates” has become mandatory for fiscal years ending on or after March 31, 2021. This accounting standard mentioned does not apply to the actual process of accounting, it is to provide a standard for the notes provided to financial statements. IFRS-compliant companies have already been providing detailed…
Introduction In the Act for Partial Revision of the Income Tax Act and Other Acts (Act No. 8 of 2020) promulgated in March 2020, the consolidated tax payment system underwent a review and was shifted to the group aggregation system. This transition will be effective for fiscal years beginning on or after April 1, 2022….
Introduction It has been more than a year and a half since the COVID-19 virus was first detected in Japan. Our lifestyles have changed drastically since then. It would be safe to then assume that this also affected how we work. Based on a survey conducted by Persol Research and Consulting Co., Ltd., at the…
Introduction With October soon approaching, it brings the start of the registration process for qualified issuer registration, as more and more companies may be preparing in earnest for the introduction of the Qualified Invoice Preservation System (Invoice System), which will start on October 1, 2023. We will provide you with an overview of the new…
Introduction Stock options have gained attention in Japan recently as a means to motivate employees, as they are expected to generate capital gains linked to the company’s performance. In this article, we will take a look at the outline, structure, types, accounting and tax treatment of stock options. What are Stock Options? A type of…
~Expansion of housing loan deduction, comprehensive taxation for interest on corporate bonds issued by family-owned companies, and strengthening of taxation on short-term retirement allowances, etc.~ 1. Introduction Continuing from the previous article, this time we would like to focus on the items in the FY 2021 Tax Reform Proposal that have attracted much attention in…
~DX Investment Promotion Tax Incentive, Carbon Neutral Investment Promotion Tax Incentive, and Special Measures for Deduction Limits on Net Operating Losses~ 1. Introduction The Tax Reform proposal for fiscal year 2021 was released on December 10, 2020. This year’s tax reform plan focuses on tax measures related to overcoming deflation and revitalizing the economy as…
~The GoTo Campaign and Deduction of Medical Expenses～ Introduction On October 23, 2020, the National Tax Agency provided an update to its “FAQs about the tax treatments for the tax filing and tax payment procedures, etc. relating to the prevention of the spread of COVID-19”. The update mainly provided clarification on the tax treatment regarding…
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)….
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