1. Accounting(Consideration of the new lease accounting)
Accounting Standard Board of Japan (ASBJ) began to develop the lease accounting to ensure the internationally consistent Japanese accounting standards. For the lessee account, International Financial Reporting Standards (IFRS) NO.16 specifies that the assets and liabilities arising from basically all leases should be recognized based on the right-of-use model, which recognize the assets arising from the right-of-use whose control is transferred to the lessee (right-of-use asset) and liabilities similar to the borrowed money associated with this transfer (lease liabilities).
For the lease contract or lease containing contract, companies need to process accounts for the each lease part on the contract separately from the non-lease parts.
Under this situation, if the Japanese accounting standard equivalent with the IFRS 16 will be developed, the business world may have a great impact.
The national tax agency announced the information on how to handle the income segments in vacation rental business at the timing when “the private lodging business law” to regulate the so-called “private lodging business”, which is a service to provide private houses for lodging service, is enforced. According to this information, the income segment for the individual income tax in the private lodging business is basically treated as the miscellaneous income. However, if the said business is recognized as a business for livelihood, the income is classified into the business income.
We can interpret that the same handling is applied when the non-residents in Japanese tax system provide their houses located in Japan for the lodging business. When non-residents transfer their real estates located in Japan to someone, the income arising from this transfer is subject to Japanese taxation regardless of the tax treaty implementation. Attention must be paid in this respect.
3. Labor Management (Work-life Balance Subsidies: “Subsidy for Fair Evaluation and Treatment of Re-employed Workers”)
The “Subsidy for Fair Evaluation and Treatment of Re-employed Workers” is paid to an employer who meets both of the following conditions:
(1) Implemented a re-employment system to ensure that an employee’s experience and ability are evaluated fairly when they return to work after pregnancy, childbirth, childcare and family care.
(2) Re-employed 1 or more employees continuously for a certain period under the implemented re-employment system.
If an employer already has its own re-employment system and has amended it to meet the subsidy requirements, the subsidy is applicable to re-employments after the amendment.
There are some other requirements to be met in addition to implementing a re-employment system, such as a clear reason of resignation, etc., so please see the website of the Ministry of Health, Labor and Welfare, “Subsidies for promotion of work-life balance” for more details.
(Source: Website of the Ministry of Health, Labor and Welfare, “Subsidies for promotion of work-life balance”)
4. This Month’s Words of Wisdom
We need guide even for tiny thing.(The leaders are always helpful even in a trifling matter.)
（Section 52, Tsurezuregusa (Essays in Idleness), Kenko Hoshi）
I visited Aahen in Germany the other day. I couldn’t find a bronze statue of Charlemagne in the target place, and I was almost ready to give up. I asked a local person about it and finally I could face it. In such situation, I came up with this words of wisdom.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.