1. Accounting（Establishment of SSBJ）
The IFRS Foundation establishes the International Committee on Sustainability Standards (ISSB). And in Japan, the Financial Accounting Standards Board (FASF) has established the Sustainability Standards Board (SSBJ).
The objective is to develop national sustainability disclosure standards and contribute to the development of international standards. It is scheduled to be established in July 2022.
2. Tax (Tax Reform for FY2021: Remittance tax payment from overseas is now possible)
Individuals and corporations residing outside Japan may pay Japanese tax to the Japanese tax office by credit card or by internet banking at Japanese banks, but in order to pay taxes in cash, it was virtually necessary to go through the tax payment procedures at a bank or other financial institution in Japan with the help of an individual in Japan.
After January 4, 2022, due to the Tax Reform for FY2021, as an alternative to this method of paying taxes from outside Japan, it is now possible to pay taxes by direct remittance in Japanese yen from a bank account outside Japan to a designated account at the Tokyo Regional Tax Bureau in Japan. In the case of using this procedure, it is necessary to call the Tokyo Regional Tax Bureau for guidance prior to remittance.
3. Labor Management (Revision of Calculation Method of Retirement Income Amount)
The amendment will be applied to the method of calculating the amount of retirement income from January 1, 2022.
Retirement allowance, etc. corresponding to five years or less of service as a non-board member, etc., and not falling under the category of specified retirement allowance, etc. for board members is positioned as “short-term retirement allowance, etc.”, and the retirement income of such short-term retirement allowance, etc. will be determined according to the following classification.
1. When “income earned from short-term retirement allowance, etc.
– deduction for retirement income” is 3 million yen or less
(Amount of Income – Deductible Retirement Income) x 1/2 = Amount of Retirement Income (No Change from before revision)
2. When “income earned from short-term retirement allowance, etc.
– deduction for retirement income” exceeds 3 million yen
1.5 million yen + (amount of income – (3 million yen + amount of retirement income deduction)) = Amount of retirement income
This is an amendment for the equalization of taxation that considering the current status of retirement benefits.
Source: Ministry of Finance “Explanation of 2021 Tax Reform”
4. This Month’s Words of Wisdom
One ought never to turn one’s back on a threatened danger and try to run away from it.
If you do that, you will double the danger.
But if you meet it promptly and without flinching, you will reduce the danger by half.
Never run away from anything. Never!
-Winston Churchill
In my personal experience, after the risk was reduced by half, it often led to the next opportunity.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.
