1. Accounting (TSE’s request to Listed Companies with P/B Ratio of Below 1.0)
Tokyo Stock Exchange (TSE) is about to make a request to the companies listed on Prime and Standard markets with a P/B ratio of below 1.0 to accurately identify their cost of capital and return on capital and discuss evaluations on the situation and total market value at the management level or board of directors, and then requires those companies to disclose their policies of improvement on such factors, specific efforts and its progress as appropriate. TSE plans to make such a request this spring.
2. Tax (National Tax Agency to Release FAQ for Tax Treatment on NFTs)
On January 13, the National Tax Agency compiled and released FAQ for tax treatment on NFTs traded on a blockchain for reference. What follows is an excerpt of international taxation from the FAQ.
The NFTs held by a resident at a foreign marketplace are acknowledged as domestic assets and are not subject to report on the Foreign Asset Report. This is because, the tax laws of Japan classify NFTs as any assets whose situs shall be judged at the domicile (or residence for those who does not have a domicile) of the owner. Foreign Asset Report is a document which a tax resident is subject to file.
3. Labor Management (Health Checkups at the Time of Hiring and Periodic Health Checkups)
With consideration for securing employees’ health, employers are required by laws to provide medical checkups for employees, including checkups at the time of hiring and periodic checkups on an annual basis, while employees are required to receive these checkups.
There are 11 prescribed examination items for such medical checkups, however, some may be skipped at a physician’s discretion.
Each employee should be notified of their health check results, while the employer keeps the records of checkup implementation. It should be noted that the employer might need to deal with some post-checkup matters such as reporting the checkup implementation status to the head of relevant labor standards supervision office, depending on their size as a business entity.
(Source: Articles 66 and 100 of Industrial Safety and Health Act and Articles 43 and 44 of Ordinance on Industrial Safety and Health)
For more details, please refer to Nagamine & Mishima JC Accounting K.K.
