202203.31
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On Share Delivery

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…

Notes on Accounting Estimates
202109.20
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Notes on Accounting Estimates

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…

Regarding the Group Aggregation System
202108.20
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Regarding the Group Aggregation System

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….

About the Invoice System
202104.20
0

About the Invoice System

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…

Accounting and Tax Treatment for Stock Options
202103.30
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Accounting and Tax Treatment for Stock Options

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…

202102.20
0

On the FY 2021 Tax Reform part. 2

~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…

202101.20
0

On the FY 2021 Tax Reform part. 1

~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…

Updates to the National Tax Agency’s COVID-19 FAQs
202011.20
0

Updates to the National Tax Agency’s COVID-19 FAQs

~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…

Advantages of tax system for SEMs in Japan
202011.02
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Advantages of tax system for SEMs in Japan

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…

Notifications when Establishing Companies
202010.23
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Notifications when Establishing Companies

● 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)….