Newsletter November 2010

 

With autumn and the weather becoming cooler, we hope you have been able to get back to focusing on your business after the hot summer. We are sending you the Solid Japan November Newsletter with news and information on business in Japan to assist you and your business. Please contact Solid Japan at info@solidjapan.com to find out how we can help your business.

 

Government Stimulus

The Japanese government has been busy this month working on ways to improve the business environment.

A new 5.05 trillion yen (USD 55 billion) stimulus plan was approved by the cabinet early last month as a way to save and create up to 500,000 jobs. This is the second stimulus plan introduced by the Kan administration in as many months. The latest stimulus is seen as a supplement to the plan last month which was widely criticized as being insufficient.  That plan was for 915 million yen and purported to create 200,000 jobs.

 

Tax Cuts

The Nikkei Keizai Shimbun has reported that the Japanese government is ready to propose corporate tax cuts from its current rate of 40%. The cuts are said to be 5% for domestic corporations and reductions to of a rate of 25-30% for foreign owned companies. Discussions of corporate tax cuts have been ongoing since early summer when Prime Minister Kan took office along with new METI minister also declaring that Japanese corporate tax rates needing to be cut by at least 5% when he started in that position in September.

 

The “Blue Form”

The Blue Tax Form (Aoiro Shinkoku) affords Japanese companies special tax privileges under tax law. Some of the benefits include:

·           Longer periods for carrying forward and back of losses

·           Special deductions from tax and income

·           Less powers of the tax office to make corrections

·           Other tax/accounting benefits

In order to apply for these tax advantages a company must record and maintain proper accounting records and apply by the appropriate deadlines. Please contact Solid Japan to ensure your business is receiving the benefits of the Blue Form. info@solidjapan.com

 

Solid Japan Sponsors After 7 Event

A good time was had by all 550 people who attended the E central After 7 Event held at the yet to be opened XEX in Nihonbashi where Solid Japan was a title sponsor.  Photos and information of the event can be seen at www.careercenter.ecentral.jp/after7-event-report/

 

Tokyo Executives

Tokyo Executives will be holding its monthly event November 18th at xxxxx. More information can be found at the Linked In group homepage www.linkedin.com/groups?mostPopular=&gid=1906023

 

September Trade Surplus Rises

Even with the pressures of the strong yen, Japan’s September trade surplus increased 54% compared to the previous September to almost 800 billion yen. This increase went against the expectations of many economists according to polls conducted by Dow Jones Newswires. Despite a rise in exports of 10%, an increase of 14.4% or nearly 6 trillion yen was the reason for the increase in the trade surplus.

 

Did you know?

Did you know that companies with more than 10 employees must have formal work rules registered with the Labour Standards Inspection Bureau? This is a formal procedure that goes beyond a regular internal company rule book or policy and procedures.  Solid Japan can help your firm comply with this requirement. Contact us for more information. info@solidjapan.com

 

Do you hire independent contractors?

If so, it is very important that you have a proper Independent Contractor Agreement in place and understand the potential tax and labour issues that could result. There are ways that employers can protect themselves against these potentially costly problems. Contact Solid Japan to find out how you can protect you and your business. info@solidjapan.com

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