New invoice system in japan 2023

Items to be confirmed before and after the start of the New Japanese Invoicing System

【1】Items to be reconfirmed before the New Invoicing System starts Please review the following items to be confirmed if they are being addressed. ※1.The Components needed for a “Qualified Invoice” ※2.System’s capability for handling fractional amounts  3.Communication of the registered number to your business partners  4.Confirmation of registration status/registration number of business partners  5.Price negotiation between Taxpaying entity and Non-Taxpaying entity     (Antitrust law compliance required) ※6.Applicable transactions before and after October 1, 2023

New invoice system in japan 2023

The Importance of Accounting and Taxation Related to U.S. Market Entry (Japanese Text Only)


Taxation on Lottery Winnings in the U.S. (Japanese Text Only)

米国の宝くじですが、米国では日本と違い当選者が出なかった場合は当選金が次の抽選に繰り越されるため、当選金の金額が桁違いとなることが多く、2023年7月10日現在、CA州のMEGA MILLIONSと呼ばれる宝くじは1等賞金が$480million (672億円、$1=140円)、Powerballと呼ばれる宝くじは1等賞金が$650million (910億円、$1=140円)となっています。

New invoice system in japan 2023

About Tax Due Diligence in the U.S.A. (Japanese Text Only)


Amendment to Overtime Premium Rates

SMEs are required to pay a 50% overtime premium for monthly overtime work exceeding 60 hours The Japanese Ministry of Health, Labor and Welfare has made a new amendment towards premium wage rate for overtime work for small and medium enterprises (SMEs). The amendment implemented in April 2023 raised the overtime premium rate to 50% for SMEs, which previously only applied to large enterprises with grace period measures. With this amendment, the reduction of working hours is expected to lead to improved productivity and performance, but the economic burden on SMEs due to the payment of overtime premiums is also acknowledged as a challenge that needs to be addressed. ■Alternative Leave System: It is also possible to establish a system to grant paid leaves, known as “alternate leaves” in lieu of paying the increased premium wages.  The introduction of this system requires a labor-management agreement, and there are provisions specifying that the leave must be granted within two months from the day following the end of the month with overtime work exceeding 60 hours. ■Relationship with Late-Night and Holiday Work: If overtime work exceeding 60 hours is performed during the late-night hours, employers are obligated to pay an overtime premium

Revision to Guidelines for Accounting Standards of SMEs

In Japan, there are “Guidelines for Accounting of Small and Medium-sized Enterprises” (the Guidelines) that non-publicly listed companies or that are not large companies under the Companies Act can rely on when preparing their financial statements. Such companies are audited by Certified Public Accountants.  These Guidelines were recently revised on May 10, 2023. These Guidelines are created by four organizations: Japan Federation of Certified Public Tax Accountants’ Associations, The Japanese Institute of Certified Public Accountants, The Japan Chamber of Commerce and Industry, and The Accounting Standards Board of Japan, in cooperation with the Ministry of Justice, the Financial Services Agency, and the Small and Medium Enterprise Agency. Compared to the corporate accounting standards that listed companies rely on in preparing their financial statements, the standards in these Guidelines are simplified and easier for SMEs to deal with. For example, these Guidelines allow the use of the “Last Purchase Price” method inventory valuation. In addition, certain tax accounting treatment is also permitted, resulting in fewer adjustments required for corporate tax returns. For example, the calculation of the allowance for doubtful accounts can be based on the criteria specified in the Corporate Tax Law under certain conditions. Furthermore, companies that prepare their

New invoice system in japan 2023

Introduction to the New Japanese Invoice System Implementation & Qualified Invoice Issuers

May 2023 Japan will implement a qualified invoice storage method (Japanese Invoice System) from October 2023. Under this new Japanese Invoice System, all qualified invoices, where tax credits for Japanese Consumption Tax (JCT) are applicable, will require proper storage as per the stipulated guidelines. Otherwise, deductions through tax credits may not be applicable, and the amount of JCT payments may increase.   A ‘Qualified Invoice’ is an Invoice or Receipt that is issued by a qualified invoice issuing company and includes the following 6 components   1. The name and registered number of the qualified invoice issuer  2. Transaction Date3. Transaction Detail (clarification of item subject to the reduced tax)4. Transaction Amount (Display respective amounts by applicable tax rate)5. Consumption Tax Amount along with the applicable tax rate6. Name of the counterparty along with billing address  Input of registered number and consumption tax along with the applicable tax rate is the key differentiator from the current invoicing system. A Qualified Invoice Issuer is a taxpaying business that has applied to the tax office and has been registered as a qualified invoice issuer with tax office. Upon registration as a qualified invoice issuer, the business operator will be given a registered number, and that

The Valuation of Startups (Japanese text only)

2023年4月4日に公認会計士協会が、「スタートアップ企業の価値評価実務」というガイドライン(以下、「スタートアップ価値評価ガイドライン」)を公表しました。 これは今まで日本においては明確なガイドラインが無かったスタートアップ企業の価値評価の留意点や種類株式の価値評価を中心に解説しています。

About U.S. Export Regulations – Part I: Overview of U.S. Export Regulations (Japanese Text Only)