March featured business affairs

business, business solutions, law, accounting, visa, set up, incorporate, new business, wi-fi, cafe, deli-cafe

1. Accounting(Virtual Currency)

Last December, the Practice Response Report Exposure Draft No.53 of “Practical Treatment Concerning Accounting for Virtual Currency etc. in the Settlement Law (draft)” was released.

In the draft, there is a part which examines the existence of accounting for virtual currency assets.I reexamined the theft of NEM coins from Coincheck,inc.

At this point, the virtual currencies do not have clear point in private law and it is not clear whether or not it is acceptable to acknowledge some legal property rights to the virtual currencies. In accounting standards in Japan, legal rights are treated as accounting assets in many, but not all cases.

However, it is not necessary corresponding to the legal rights is a requirement to be accounting assets. For example, deferred tax assets and software for in-house use etc. are also capitalized as assets.

It is unclear whether virtual currencies corresponds to legal rights, but as it is possible to treat it as an acquisition of funds through trading and conversion, virtual currencies can be treated as an accounting asset as well.

2. Tax(The Outline of Tax Revisions of 2018 (Part 2))

1.The definition of the branch PE will be revised, where certain place of business used only for the purpose of engaging in storage, display, delivery of goods or other specific activities will not be included in the scope of PE, provided that limited to the case where function of these activities is merely of a preparatory or auxiliary character for the execution of the business of a nonresident.

2.Regarding the period requirement of the construction PE, if one of the main objective of the division of contract is to evade the recognition of the construction PE by dividing contract into several parts in order to make each period of construction work less than one year, the period requirement will be tested by using the total of the divided periods.

(To be continued in our next issue)
Further, this revision is applied to the individual income tax for the 2019 calendar year or later and the corporate tax fiscal year starting on or after January 1, 2019.

3. Labor Management (Results of questionnaire on employers’ approaches to promote mental health in the workplace)

The Mental Health Research Institute (MHRI) of the Japan Productivity Center (JPC) announced the results of a questionnaire submitted to employers regarding their approaches to promoting mental health in the workplace.

Among employees suffering from “mental illness”, the age groups of 30s and 40s accounted for the highest proportion at over 30%, but the proportion of the age group of 10s – 20s has also increased to nearly 30%, illustrating that the proportion of each generation are the same.

The trends describing the propensity of mental illness in the last 3 years are as follows: “increasing” is at 24.4%, “stable” is at 59.7% and “decreasing” is at 10.4%. The “increasing” trend is leveling off, but is still in a state of stagnation.
The average rate of employees who took a Stress Check is high at 90.0% among the surveyed companies. 60% of the companies which implemented a Stress Check mentioned their next challenge is “how to utilize the results of the group analysis”.

4. This Week’s Words of Wisdom

“Indifference to dress is equal to mental suicide” (Honore Balzac)

During summer, we recently have Cool Biz, so many men wear relatively colorful clothes; however, men always turn back to black or dark blue business suits in winter. Even within these constraints, it is unexpectedly fun to try small accessories.

It is a waste not to worry about how we dress when we spend most of our lives dressed for business.

For more details, please refer to Nagamine & Mishima JC Accounting K.K.

See Previous Posts