1. Accounting（Accounting treatment for the issuance, holding, etc. of ‘electronic means of payment’ under the Funds Settlement Act）
In August 2022, in response to a recommendation from the Business Accounting Standards Advisory Council, the accounting treatment of the issuance and holding of ‘electronic means of payment’ under the Funds Settlement Act is being considered. The ASBJ has started considering the issue in August 2022.
2. Tax（OECD releases technical guidance on global minimum taxation）
On February 2, 2023, the OECD/G20 BEPS Inclusive Framework released the “Agreed Administrative Guidance for the Pillar Two GloBE Rules”, a technical guidance to help governments implement a new international tax regime, the global minimum corporate tax rules (which tax multinational enterprises at an effective minimum rate of 15%) from 2024.
3. Labor Management（Reconsideration of the application of the system of deemed working hours outside workplace）
On 22 November 2022, the Tokyo High Court ruled against the application of the system of deemed working hours outside workplace to a certain company.
The court held that the introduction of a time and attendance system made it possible to ascertain the start and finish times of work, and that it was possible to manage working hours, for example, when overtime work was applied for in advance and the employee was engaged in work under specific instructions.
The law requires employers to make efforts to monitor working hours by, for example, lending employees smartphones and having them report to their supervisors at any time on the status of their work and having their supervisors confirm the status of their work.
With the prescription for wage claims having been extended to three years, the risk of not being allowed to apply the system of deemed working hours outside workplace has also increased. Companies that continue to apply the system will need to consider switching to normal working time management.
4.This Month’s Words of Wisdom
‘It must be a gift to be able to maintain the same attitude and the same passion for decades.
I know from many of my predecessors that it is not easy to keep doing one thing.”
-Yoshiharu Habu-
These words from a top-notch person. They have weight.
For more details, please refer to Nagamine & Mishima JC Accounting K.K.
