Government measures in key jurisdictions 5th edition - Flipbook - Page 85
Japan
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
Litigation
•
As of 15 February 2021, there have been no changes to the laws that legally allow
tenants to defer rent payments.
•
On 14 July 2020, the government announced an office rent subsidy program for selfemployed individuals and small and medium enterprises (“SME”) with a capital of less
than JPY 1 billion and, for which sales income during 1 May to 31 December had
decreased by 50% or more from the same month of the previous year or by 30 % or
more in a total of successive three months from the same period of the previous year.
The maximum amount of the subsidy is JPY 6 million for SMEs and JPY 3 million for
self-employed individuals. This subsidy program ended on 15 February 2021 and will
no longer accept new applications.
•
Are the courts
operating?
Tax
For the purpose of preventing the spread of Covid-19, there may be changes with
respect to some services available at courts so it is advisable to check with the
court in charge of one’s case before visiting the court.
New tax legislation in relation to Covid-19 has been introduced, including the following measures.
Has any new
•
legislation been
introduced in light
of Covid-19?
•
•
•
•
•
•
•
One year grace period for payment of national and local taxes, and social insurance
premiums (whose due date is before 1 February 2021) with no delinquent tax by business
operators whose revenues during any period of 1 month or longer commencing after 1
February 2020 have decreased by approximately 20% or more from the same period of the
previous year.
One year grace period for payment of national taxes (whose due date is after 1 February 2021)
with reduced delinquent tax by individuals or business operators who (i) will have a risk of
difficulty in continuing business or maintaining livelihood doe to tax payment, (ii) have the
sincere intention to pay the tax, (iii) have submitted their application within six months of the
due date and (iv) have no delinquency in payment of taxes other than the national taxes for
which the deferment is sought.
One year grace period for payment of national taxes (whose due date is after 1 February 2021)
with no delinquent tax by individuals or business operators (i) who have disposed of their
equipment and inventories due to disinfection work conducted at their facility where a Covid
outbreak occurred, (ii) who either they themselves, or another family member who also
contributes to the household , was infected, (iii) whose business has been closed due to
unavoidable circumstances or (iv) whose business has had significant loss due to a decrease
in profits etc.
A tax refund system may be applied to firms capitalized at over 100 million yen but below 1
billion yen through tax loss carrybacks.
Tax regime for capital investment for teleworking.
Donation deductions apply to spectators, etc. who give up the right to claim a refund from
organizers who cancel an event based on the government’s request for self-restraint.
Stamp tax shall be exempted for future special loan contracts made by financial institutions
to business operators whose business operations have been affected by Covid-19.
There are also several other minor tax measures implemented in relation to business
affected by Covid-19.
Government measures in key jurisdictions
85
