2023/05/31

We're delighted to announce our Partner Naoko Sato's informative video on Japan's tax system for foreign businesses, now available on
JETRO's site.

This guide simplifies Japan's complex tax landscape, making it an invaluable resource for international companies considering the Japanese market.

Visit JETRO's website today and embark on your Japanese business journey with confidence.

https://www.jetro.go.jp/en/invest/setting_up/#a-06

Watch the video 'Ask The Experts: Taxation in Japan'

2023/03/16

The payment rate for overtime worked in excess of 60 hours per month used to be 50% for large enterprises and 25% for small and
medium-sized enterprises, but the rate will increase from 25% to 50% or more for the latter, too, from 1 April 2023.
Please note that it will be mandatory.

Late night work
If overtime in excess of 60 hours per month is worked during the late hours (22:00 - 5:00), the following rates will apply.
Late night payment rate is 25% + overtime payment rate is 50% = 75%

Holiday work
The calculation of 60 hours of overtime per month does not include hours worked on statutory holidays, but include hours worked on other holidays.

To protect the health of workers who work more than 60 hours of overtime per month, paid leave (alternative leave) may be granted
instead of the increased payment.

However, this alternative leave scheme can only be applied, if there is a prior agreement between the company and employees, and the
employee concerned have agreed to take alternative leave.

The employment regulation and payroll calculation may need to be reviewed.

For more details on this please refer to the following URL (Japanese):
Ministry of Health, Labour and Welfare　000930914.pdf (mhlw.go.jp)

2022/12/13

Notice of office closure during new year holidays

This is to inform you that our office will be closed for the New Year’s holiday from Thursday, the 29th of December to Tuesday, the 3rd of January.

You will not be able to reach us during the holiday. We will resume business as usual from Wednesday, the 4th of January.

We are sorry for the inconvenience this may cause you.

Thank you for your kind support during this year and continuous help for the new year.

2022/03/22

The Child Care and Family Care Leave Law will be revised on April 1, 2022. Please be noted that employers are obliged to take the necessary measures for the following:

1. Obligation to improve the employment environment and to inform employees on the child care leave and confirm intentions of relevant individual employees to take it
A) Creating an employment environment that facilitates the acquisition of childcare leave
B) Informing employees of child care leave and confirming the intentions of employees who have reported their or their spouses’ pregnancy or childbirth to take it

2. Relaxation of requirements for fixed-term employees to take Child Care and Family Care Leave
The current requirement of "continuous employment for at least one year" will be eliminated. The following requirements will remain:
Child Care Leave: It is not obvious that the contract will expire before the employee’s child turns 1 year and 6 months old".
Family Care leave: It is not obvious that the contract will expire before the date of expiration of six months from the 93rd day from the scheduled date of start of the Family Care Leave

In addition, the following will come into effect on October 1, 2022.

3. Establishment of Postnatal Paternity Child Care Leave (Child Care Leave at Birth)
Besides regular Child Care Leave, fathers can take up to 4 weeks of leave during the 8 weeks after the birth of his child. It is also possible to take the leave twice in installments.

4. Split Child Care Leave
Currently, it is not possible to take Child Care Leave in installments. However, from October 1, it will be possible to take Child Care Leave twice in installments.

Please refer to the following document from the Ministry of Health, Labor and Welfare for an overview of the system, details, relevant forms, etc. (only in Japanese)

Leaflet "Guide to Amendments to the Child Care and Family Care Leave Law" (4 pages)
https://www.mhlw.go.jp/content/11900000/000789715.pdf

Explanatory material for employers on the "Revision of the Child Care and Family Care Leave Law - Promotion of Male Employees to Take Child Care Leave, etc.
https://www.mhlw.go.jp/content/11900000/000851662.pdf

Sample forms of individual notification and confirmation of intent to take Child Care Leave
https://www.mhlw.go.jp/content/11909000/000852918.pdf

2021/12/13

Notice of office closure during new year holidays

This is to inform you that our office will be closed for the New Year’s holiday from Wednesday, the 29th of December to Monday, the 3rd of January.


You will not be able to reach us during the holiday. We will resume business as usual from Tuesday, the 4th of January.

We are sorry for the inconvenience this may cause you.

Thank you for all your kind support of this year and continuous help for the new year.

2021/07/02

(After amendment)
Employees can claim the above leave up to five days per year (or ten days, if he/she have two or more children or family members) for the purpose of caring for a child (*) or a family member. Now, this leave can be claimed on an hourly basis.
However, it is not obliged for the employers to pay for this leave.
(*) Care for sick or injured child, health checkups and immunizations

(Before amendment)
・Employee could claim the leave on a daily or a half-day basis.
・Employees whose agreed working hours are less than four hours per day were not eligible for the leave.

Pointes to be noted are as follows:
# 1 Any fraction of less than one hour shall be rounded up to one hour.
For example, if the agreed (prescribed) working hours per day of an employee is 7 hours and 30 minutes, and if he/she claims the leave on an hourly basis for 7 times, 30 minutes will be left over. In this case, as 30 minutes shall be round up to one hour, he/she can claim the leave 8 times in total.
In other words, if an employee takes this leave on a daily basis, he/she can claim 7 hours and 30 minutes, but in case he/she claims it on an hourly basis, he/she can claim8 hours.

# 2 Under the revised law, employees can take the leave for an hour or some hours from the starting time of the working hours, or after finishing work earlier than the agreed finishing time. Employers are not obligated to establish internal rules that allows employees to take leave during working hours (so called "Stepping out").
However, in order to promote the convenience of employees, Ministry of Health, Labor and Welfare requests employers to take a measure that exceeds the law and to consider to allow employees to take leave in such a way to step out during the work hours

# 3If it is difficult to take the leave on an hourly basis due to the nature of the job, it can be excluded by signing a labor-management agreement in advance.
e.g. International airline crew, etc.

Ministry of Health, Labor and Welfare HP
https://www.mhlw.go.jp/content/11900000/000582033.pdf

The leave under this law is currently not required to be paid, but employers who introduced it as paid leave and meet certain requirements such as having their workers take the leave, may receive “Work-Life Balance Support Subsidy”.
https://www.mhlw.go.jp/content/000754580.pdf

2021/01/15

Revision of the Law Concerning Stabilization of Employment of the Elderly (Effective April 1, 2021)

In addition to the current obligation to secure employment until the age of 65, companies are obliged to make efforts to secure
employment opportunities until the age of 70.

【Current law】
Obligation to implement any of �@ to �B and to provide employment opportunities until age 65

�@ Raising the retirement age to 65
�A Introduction of continuous employment system for employees up to 65 years old (Reemployment or extended employment systems)
�B Abolition of mandatory retirement age

【After the revision in April 2021】
It is necessary to make efforts to introduce any of the measures from �@ to �D to ensure the employment of elderly people.


�@ Raising the retirement age to 70
�A Introduction of continuous employment system for employees up to age 70
�B Abolition of mandatory retirement age


�C 　A system under which elderly persons who wish to work are awarded outsourcing contracts on an ongoing basis until the age of 70.
*A system in which a person undertakes work for the company not as an employee but as a sole proprietor
�D　Introduction of a system which enables elderly persons who wish to work to engage in social contribution projects implemented by
employers until age 70.
*Participating as a paid volunteer in social contribution NPO activities established by the company etc.
(For �C to �D, prior preparations such as to make a plan and obtain agreement of the majority of labor union are required. As workers'
accident compensation insurance is not applicable careful enough discussion, in house announcement and thorough explanation are
necessary.)

This will be a new challenge for companies, but it may also be a chance to secure excellent employees amid the declining birthrate and
aging population.
For elderly people who wish to work, in addition to securing income, there is a possibility to increase the amount of old-age pension
benefits due to the extension of the insured period of the employees' pension program, and or a possibility to receive benefits in
the event that they become unable to work because of illness or injury during the insured period of the employee’s health insurance
program.

Ministry of Health, Labor and Welfare website (Japanese)

June 1, 2020

Notice regarding operations of AKIA office after the lift of the declaration of State of Emergency by the Japanese Government

The Japanese Government's declaration of a State of Emergency due to the Coronavirus (COVID-19) pandemic was lifted on May 25.
However, we have decided to continue the following operational procedures to prevent the spread of the virus, and ensure the safety of
our clients and employees. We apologize for any inconvenience this may cause and appreciate your kind understanding in the matter.

1) Operation in our Yokohama office
We will gradually resume the regular operation in our Yokohama office. But our staff will continue to work from home as well. We also will
continue to refrain from client visits and any face-to-face meetings and replace them with teleconferencing (Skype / Zoom) and
communication with e-mails.

2) Contact information
Please contact us primarily by email. As for your call to our office phone number, it will be answered by an operator of a secretary service. Please leave your message and contact number so that in-charge person will get back to you.

3) Postal mail delivery
Postal deliveries will continue as usual. However, since our administration staff responsible for mail handling may not be there always, we
cannot check them regularly. Please send documents electronically by e-mail. In case original documents need to be sent or received
by post/courier, please give a notice to our staff in advance.

4) Billing & Invoicing
All invoices to clients will be sent electronically in a PDF format by e-mail. If the hard copy of the invoice is required, please contact our
staff.

We thank you in advance for your kind understanding and co-operation.

We wish you, your family and colleagues the good health and safety.

With Best Regards,
AKIA TAX CONSULTANTS

May 7, 2020

In relation to our notice regarding operations of AKIA office in response to the declaration of State of Emergency by the Japanese
Government dated April 13, we would like to inform you that we have extended our work from home period till May 31
as per the government’s declaration of extension of State of Emergency period till May 31.
All the operational procedures in our prior notice apply until the above mentioned date.

We thank you for your continuous understanding and co-operation.

With Best Regards,
AKIA TAX CONSULTANTS

May 7, 2020

Japanese government has implemented various economic measures against theCovid-19 pandemic.

We selected some important measures regarding taxation and subsidies.

We hope the table will be useful for your business.

Please note this table is prepared for general use and several factors shall be considered as to the applicability to your company.
(This is based on the information as of April 29. )

Relief Measures during Coronavirus outbreak_20200429_rev

With Best Regards,
AKIA TAX CONSULTANTS