1. Accounting (Who to Give Assurance of Sustainability Information)
The working group on corporate disclosure of the financial system council under Financial Services Agency reported last December that the third-party assurance of sustainability information could be given by a party such as certified public accountants or auditing firms who audit financial statements. On the other hand, the report also noted that it is important to embrace a wide range of professionals giving the third-party assurance, considering that sustainability covers broad scope of topics requiring diverse expertise. Companies should expect not a little burden with this matter.
2. Tax (Protocol Amending the Tax Convention Japan-Switzerland -2: Tax Exemption and Reduction on Dividends and Interest)
In this month’s issue, we introduce the provisions relating to investment income (dividends and interest) in the Protocol Amending the Convention between Japan and Switzerland (signed on July 16, 2021, and entered into force on November 30, 2022), which outline has been explained in the previous issue.
After the effective date of the amendment, taxes at a sourcing country (where the person paying the amount resides) on dividends or interest transferred between Japan and Switzerland are exempted or reduced as follows.
① In the case where the beneficial owner of the dividends is a company who has owned the company paying the dividends throughout a 365 day period that includes the date on which entitlement to the dividends at least 10 per cent of the equity (*) ・・・tax exempted
(*) in the case where the company paying the dividends is a resident of Japan, it means the voting power of that company, while the said is a resident of Switzerland, it means the allotted capital or voting power of that company.
② Beneficial owners of the dividends who do not fall under the above ① ・・・tax charged up to 10% of the gross amount of the dividends
① Interest determined by reference to income, profits, or any change in the value of any property of the debtor or a related person, or to any dividends or similar payment made by the debtor or a related person・・・tax charged up to 10% of the gross amount of the interest.
② Interest that does not fall under the above ①・・・tax exempted
3. Labor Management (Salary payment in digital money)
Currently, wages may be paid in currency or, with the consent of the worker, into their account at a bank or other financial institution.
As cashless settlement become more widespread and more remittance services diversify, employers are, from April 1, 2023 onwards, allowed to payout salaries in digital money, with the consent of the worker, by transferring funds to the worker’s account at a fund transfer specialist who fulfils certain requirements and is designated by the Minister of Health, Labour and Welfare (“salary payment in digital money”). In order to initiate salary payment in digital money, a labor-management agreement must be concluded with a written consent of the workers.
Source: Ministry of Health, Labour and Welfare – Payment of Wages to Account at Fund Transfer Specialist (“Salary payment in digital money”)
4. This Month’s Words of Wisdom
The more you experience the life in other country, the more you love your home country.
(Madame de Stael)
Not a few of our clients actually came back to Japan after moving abroad and experiencing the life there.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.