1. Accounting（Accounting treatment and accounting procedures
(measurement) for the issuance, holding, etc. of “electronic payment instruments” under the Payment Service Act）
The ASBJ and the Practical Issues Task Force (PITF) have organized electronic means of payment as assets that are similar in character to demand deposits.
The most recent ASBJ statement treats 3 electronic payment instruments set out in the Payment Service as the same asset item, and those electronic payment instruments are measured at face value at the time of acquisition, and their valuation at the end of the period is similar to that of demand deposits.
2．Tax（2023 Tax Reform -1 Introduction of Global Minimum Tax）
On March 28, 2023, the Diet passed a bill for the tax reform 2023, establishing “corporate income tax on the international minimum tax amount” (“IIR”). This is Japan’s introduction into domestic law of the income aggregation rule, one of the GloBE model rules with the second pillar of the BEPS inclusive framework, “global minimum taxation”.
Broadly speaking, the IIR imposes on an ultimate parent domestic corporation if the multinational group’s consolidated turnover in two or more of the four immediately preceding consolidated fiscal years were EUR 750 million or more. If the effective corporate tax rate imposed against the subsidiary’s income in the country where the subsidiary is located was less than 15%, the domestic corporation, which is the ultimate parent company, is required to pay tax in Japan equivalent to the amount of tax on the shortfall portion of the subsidiary’s tax that is less than 15%. IIR is effective for consolidated fiscal years beginning on or after April 1, 2024.
3. Labor Management（Revision of employment insurance premium rates for fiscal 2023）
The employment insurance premium rates for general businesses for the period from April 1, 2023 to March 31, 2024 will be as follows.
1) Worker’s share: 5/1,000 (before change) → 6/1,000 (after change)
2) Employer’s contribution: 8.5/1,000 (before the change) → 9.5/1,000 (after the change)
1)+2) Employment insurance premium rates: 13.5/1,000 (before change) →
15.5/1,000 (after change)
When applying for the annual renewal of labor insurance this year, please note that the insurance premium rate differs between the finalized portion (from April 2022 to March 2023) and the provisional portion (from April 2023 to March 2024).
Source: Ministry of Health, Labour and Welfare, Information on employment insurance premium rates for fiscal 2023
For more details, please refer to Nagamine & Mishima JC Accounting K.K.
