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。
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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 Date 3. 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 rate 6. 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 will also be available along with company name on the National Tax Agency website.
In order to become a qualified invoice issuer, “Eligible Invoice Issuer Application” must be submitted to the authorized tax office.
In order to be registered from the first day of the introduction of the new Japanese invoice system, October 1, 2023, the application was accepted from October 1, 2021 to March 31, 2023 in principle, but it is now possible to be registered on October 1, 2023 if the application is submitted by September 30, 2023, even after April 2023. (Tax Reform 2023)
It is also possible to register on or after October 2, 2023, but please note that the submission deadlines are different.
To avoid confusion, we recommend your business to file the registration as early as possible.
HLS can support the application preparation and submission process.
Please feel free to contact us.
A current taxpaying entity is considered to be eligible to become a qualified invoice issuer without exception and should apply to become a qualified invoice issuer.
For instance, if a taxpaying entity is a non-qualified invoice issuer, they will not be able to take tax credits on the input consumption tax due to a non-qualified invoice. Such disadvantage to vendors may result in suspension of trading transactions or discount requests to equalize the amount of non-deducted consumption tax.
Non-taxpaying or tax exempted entities are those that are exempted from consumption tax returns and tax payments. Essentially, a non-taxpaying entity cannot become a qualified invoice issuer. In order for a non-taxpaying entity to become a qualified invoice issuer, it must become a tax paying business first, and waive the benefits of tax exemption. Besides that, when a non-taxpaying entity issues an invoice that includes consumption tax, the consumption tax cannot be deducted by the invoice receiving vendor. However, a transactional measure of 6 years is provided as follows.
The advantages/disadvantages for a non-taxpaying entity to become a qualified invoice issuer are summarized below:
| Advantages | Disadvantages | |
| In case of becoming a qualified invoice issuer | ■ Ability to create and issue qualified invoices、and no disadvantages on business trading/transactions ■ Ongoing business trading with vendors continues (no business loss due to consumption tax issues) | ■ Can no longer enjoy the tax exemption benefits ■ Need to file consumption tax Returns resulting in an increase in professional fees |
| In case of not becoming a qualified invoice issuer | ■ Can enjoy the tax exemption benefits ■ Filing of consumption tax return is not necessary, hence no additional professional fees | ■ Possibility of termination of business trading due to disadvantage to the counterparty of the transaction (input tax credit is not available to the invoice receiver) ■ Possibility of easily getting Requested to offer discounts in the amount equivalent to the non-deductible consumption tax amount |
For non-taxpaying entities currently, please consider the advantages and disadvantages as mentioned above before deciding to become a qualified invoice issuer.
In addition, if tax exempted entities take the opportunity of the invoice system and become taxpaying entities as a qualified invoice issuer, it is possible to apply the special provisions for burden reduction measures. For details, please refer to 7. Burden Reduction Measures for Small Businesses (20% Special Provisions).
Please get in touch with your point of contact at HLS in case any specific explanations on this are required.
HLS can support the Qualified Invoice Issuer application and procedures.
Please feel free to contact us.
If your vendor is a non-taxpaying entity, they cannot issue qualified invoices to you. As a result, after your consumption tax has been calculated, there is a possibility that your consumption tax payment increases (or consumption tax refund decreases). The difference could be equivalent to the non-deductible consumption tax amount from non-qualified invoices.
After the new Japanese Invoice System is implemented, in order to reduce your economic burden, if any, please consider the following measures towards your vendors.
HLS can support the requirements to prepare a new policy letter for your vendors.
Please feel free to contact us.
When a tax exempted entity becomes a taxpaying entity as a qualified invoice issuer under the invoice system, the amount of the tax credit for purchases may be considered as a special tax credit (an amount equal to 80/100 of the amount remaining after deducting the total amount of consumption tax on the return of consideration for sales from the total amount of consumption tax on the total taxable base amount. (2023 Tax Reform).
If this special provision is applied, 20% of the sales tax amount is to be paid.
➀Applicable period
Taxable period that includes the date from October 1, 2023 to September 30, 2026
Image of the applicable period (for a corporation with a December 31 year-end)
➁ Businesses to which the provision can be applied
Businesses that have taken advantage of the invoice system to become a qualified invoice issuer from a tax exempted entity (including cases where a business has become a taxpaying entity by submitting a Consumption Taxpayer Election Notification).
In other words, “Qualified invoice issuers with taxable sales of 10 million yen or less in the base period (*)” are eligible.
However, for example, the 20% special provision cannot be applied to the following taxable periods.
●Taxable periods including October 1, 2023 for businesses that submit a Consumption Taxpayer Election Notification and become a taxable business entity on or before September 30, 2023
●Taxable periods during which “tax exemption threshold system” will not be applied even if the entity ‘s taxable sales was 10 million yen or less in the base period(*).
*Base period: The second preceding fiscal years.
➂ Note
●The 20% special provision can be applied regardless of whether general taxation or simplified taxation is selected.
No prior notification is required for application, and the choice can be made at the time of filing the tax return.
●Special provisions are also provided for the timing of submission of a Consumption Tax Simplified Taxation System Election Notice after the 20% Special Provisions are applied.
Please get in touch with your point of contact at HLS in case any specific explanations on this are required.
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Disclaimer: All views expressed in this article are solely for informational purposes and should not be construed as legal advice. This information is for reference only and is bound to change in case of any amendments or changes to applicable laws. We do not assume any responsibility or liability for any errors or omissions in the content of this article, and do not make any warranties about the completeness, reliability and accuracy of the information expressed in this article.
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。
昨今、経済安全保障問題について活発に報道されるようになり、「輸出規制」という言葉が身近に聞かれるようになりました。輸出規則というと、日系企業にとっては、日本から海外に製品を輸出する際に、日本（自国）の輸出規則の対象となり、あくまでも自国だけの規制と思わている方も多いのではないかと思います。しかし、米国の輸出規則には、「再輸出規則」と呼ばれる制度があり、たとえ日本で製造した製品でも、米国産の製品・部品、ソフトウェア、技術が一定以上含まれている場合や、米国産の技術を使用して製造した製品である場合は、他国へ輸出する際に米国政府の許可が必要になることがあります。このような場合、無許可で製品を輸出してしまい、米国の輸出規則に違反してしまうと、禁固刑や米国製品、技術についての取引が禁止になるといった厳しい罰則があります。日本で製造活動を行っている企業でも、米国産の製品、技術、ソフトウェアを取扱っており、中国、ロシアを含む、米国が規制している国々と取引を行っている場合は、米国の輸出規制に注意する必要があります。
(more…)In June 2022, the National Tax Administration Agency (NTA) announced amendments to the Transfer Pricing Administration Guidelines. The amendments are thought to reflect the January 2022 update to the OECD Transfer Pricing Guidelines on financial transactions, and they revise Japan’s legislation on the treatment of financial transactions and cost contribution agreements (CCA). It should be noted that this may affect Japanese companies operating outside of Japan, including those operating in the United States.
(more…)HLS GLOBAL CO., LTD.
HLS GLOBAL TAX CORPORATION
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As part of the 2021 tax reforms, the Japanese National Tax Agency has made amendments to the Act on Electronic Preservation System for Books and Documents related to National Taxes, and this will take effect on January 1st, 2022.
These drastic amendments are being made in order to improve productivity by digitization of accounting processes, promote remote work and improve bookkeeping methods through the utilization of cloud-based accounting software. Before the new regulations are enforced, and for further details, please refer to the National Tax Agency website (in Japanese only), Electronic Preservation System for Books and Documents.
(more…)Over the last decade, Japan has introduced various measures to combat perceived tax avoidance by multinational enterprises. Putting the activities of global corporations under increased scrutiny, it has become imperative for businesses operating in Japan to apply a sufficient amount of precaution and due diligence to all things tax-related.
As well as this, the global tax landscape continues to evolve, with each nation updating its own policies to be aligned with current trade and foreign policies. Should entities fail to navigate both the obligations of their home countries and Japan’s complex tax requirements, the consequences can be severe.
All this is to say that having a comprehensive tax advisory to support your expansion or Japan market entry activities is essential. We explore this topic and how to find your own tax advisory.
(This is the 5th article of this seminar series composed of 11 articles)
この度、米国に子会社を有する日本企業あるいは今後米国への進出を検討する日本企業の税務・海外事業ご担当者様を対象に、税理士法人HLSグローバル及びHotta Liesenberg Saito LLP の主催による、「米国の税制改正に伴う日系企業が受ける影響及び実務対策」セミナーを開催させて頂きました。
(This is the 4th article of this seminar series composed of 11 articles)
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