Greetings from the Solid Japan Team

On behalf of the Solid Japan Team we would like to wish everyone an enjoyable holiday season.

Please note that major banks such as, Mitsubishi UFJ, Mizuho, Mitsui Sumitomo and Shinsei, will be closed from December 31st and will re-open January 4th. Please be aware that ATM service may also be unavailable at this time. Solid Japan will also be closed during this same period.

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Reminder Regarding Year-End Tax Adjustments

A final reminder to all business owners and HR managers that they must prepare year-end tax adjustments for their employees for the December ending pay period. The adjustment will calculate the final tax owing to the government or the surplus of tax paid and owed back to the employee for the year. Contact Solid Japan for further information or assistance. info@solidjapan.com

Government to Encourage Foreign Companies to Setup in Japan

The government has prepared a bill to provide incentives to foreign companies who are willing to setup head offices or research facilities in Japan. The incentives may include tax benefits, visa and residency application advantages, and less stringent rules during import and export. The bill aims to make Japan a more attractive investment alternative to other Asian business centers such as South Korea, Singapore and Hong Kong.

Entertainment Expenses

With the end of the year approaching, many firms hold bonenkai ‘translated as “forget the year” parties and other entertainment for their staff, clients, and business connections. The degree to which entertainment expenses are deductible for the company can vary depending on factors such as, company size, whether the entertainment is for employees or clients, and the amount of the expense. Please contact your tax advisor regarding your company’s particular situation, or contact Solid Japan for more information. And don’t forget to keep your receipts!

Fixed Asset Report

This is a notice to all business owners that the fixed asset report is due by the final day of January. Generally fixed assets may be defined as assets with a value of JPY 100,000 or more. However, depending on the value of the fixed asset, its treatment will vary. Your tax advisor can help determine the treatment of your fixed assets for tax purposes. Or for further information please contact Solid Japan.

Japan’s Economy Grows 3.9% Last Quarter

Japan’s economy posted an annualized 3.9% GDP increase for the quarter ending September 30^th. This was higher than the 2.6% predicted by most economists. The growth of 0.9% for the quarter resulted in GDP of approximately JPY 1.7 trillion in the three month period alone. It was reported that much of the increase was due to the government stimulus plans of recent months.

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