202103.01
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On the FY 2021 Tax Reform

~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…

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)….

Looking at the Future of Tax Audits
202010.09
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Looking at the Future of Tax Audits

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…

On the Digitalization of Yearend Adjustment
202009.20
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On the Digitalization of Yearend Adjustment

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…

Tax Returns and Social Insurance Procedures for Corporations
202009.04
0

Tax Returns and Social Insurance Procedures for Corporations

● 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…

Regarding Shelf Companies in Japan
202008.25
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Regarding Shelf Companies in Japan

What is shelf company? A company already registered and which can be taken over immediately for carrying out business activities is called a shelf company. ★ Explanation ★ A company already registered and which can be taken over immediately for carrying out business activities is called a shelf company. A shelf company is also called…

202008.20
0

Business Succession during COVID-19

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…

Change in Officers’ Remuneration due to COVID-19
202006.20
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Change in Officers’ Remuneration due to COVID-19

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…

Acquisitions of Companies in Japan
202006.04
0

Acquisitions of Companies in Japan

Since Abenomics was launched in 2013, Prime Minister Shinzo Abe’s economic policies represented by monetary easing, fiscal stimulus, and structural reforms, the Japanese economy was revived from Japan’s so-called ‘lost decades’ and millions of jobs were created. Along with the economic recovery, M&A activities have increased year-on-year for the past eight years since 2012. This…

Tax Relief Measures Part of the Emergency Economic Measures in Response to COVID-19 ~Exceptions for Tax Report for Election of Consumption Taxpayer・Stamp Tax Exemption for Special Loan Contracts・Special Measures for Fixed Asset Tax, etc.~
202005.20
0

Tax Relief Measures Part of the Emergency Economic Measures in Response to COVID-19 ~Exceptions for Tax Report for Election of Consumption Taxpayer・Stamp Tax Exemption for Special Loan Contracts・Special Measures for Fixed Asset Tax, etc.~

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…