1. Accounting (Accounting for Issuance and Holding of ICO Tokens)
The ASBJ (Accounting Standards Boards of Japan) has resumed its deliberations on “Discussion paper on the accounting for the issuance and holding of ICO tokens that fall under the category of Crypto-assets under the Payment Services Act or the category of electronically recorded transferable rights under the Financial Instruments and Exchange Act”.
It has been confirmed that there is a growing need for new accounting standards on ICO tokens, however, the development of such standards is believed to be extremely challenging, especially in the cases where the issuer of ICO tokens bears some obligations or when ICO tokens are acquired from a third party after their issuance.
It will also be quite costly if newly developed Japanese accounting standards have to be reworked to comply with related international accounting standards which are yet to be developed. Therefore, taking such development costs into consideration, careful decisions should be made as to whether or not to initiate the development domestically prior to the international movement, although some domestic opinions are strongly in favor of taking the lead in the development of such standards.
2. Tax (Action 5: OECD BEPS – Progress on Revisions of Harmful Tax Practices)
On July 27, 2022, the OECD Forum on Harmful Tax Practices (FHTP) has released Peer Review Results, which report the progress on revisions of the harmful tax practices and implementation of BEPS Action 5 minimum standard, with the updated conclusions for 12 preferential tax regimes (Eswatini, 2 tax regimes of Honduras, Costa Rica, Greece, 2 tax regimes of Kazakhstan, Italy, 2 tax regimes of Armenia, Pakistan, and Cabo Verde) and the conclusions of the first annual monitoring process for the effectiveness in practice of the substantial activities requirements in no or only nominal tax jurisdictions. The details are available at:
3. Labor Management (Notes for Hiring International Students)
Employers may hire international students as a part-timer or under a short-term paid internship with their working hours of up to 28 hours a week, except during a long vacation period, provided that the employer has confirmed that such international students are allowed to comprehensively engage in such activities by a stamp on their passport or a written permission to engage in an activity other than those permitted by the status of residence previously granted.
On top of the said permission, “permission to engage in an activity other than those permitted by the status of residence previously granted for more than 28 hours a week” must be obtained, in the case where the international student, who is enrolled in an undergraduate or graduate course and whose course term ends at the end of the year in which the internship takes place, works more than 28 hours a week.
In either case, international students themselves need to take care of the application at Immigration Bureau. It is, however, important for employers to confirm international students’ “status of residence,” “period of stay,” and “visa expiration date” as the employer may be penalized for hiring international students who are ineligible for employment or for letting them work beyond their maximum working hours.
(Source: Immigration Services Agency of Japan and Ministry of Health, Labour and Welfare)
4. This Month’s Words of Wisdom
Patriotism is your conviction that this country is superior to all others because you were born in it.
(George Bernard Shaw)
August 11 this year was the national holiday, but I recognized only few houses hang the national flag of Japan these days.
I don’t get it, my family always hang the flag outside our house on national holidays. Why?
For more details, please refer to Nagamine & Mishima JC Accounting K.K.