Coronavirus - Government measures in key jurisdictions - Flipbook - Page 57
Japan
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Property
•
As of 20 April 2020, there have been no changes to the laws that legally allow
tenants to defer rent payments, but new legislation is being discussed. On 31 March,
the Ministry of Land, Infrastructure, Transport and Tourism (“MLIT”) requested
landlords for commercial rents to accept a deferral of rent payments by tenants who
have difficulty paying rent due to the COVID-19 situation. On 17 April, the MLIT also
announced that it would extend a one-year grace period for the payment of taxes
and social insurance contributions by building owners for commercial rents who
agreed to defer or cancel rent payments.
•
Prefectural governors are now able to instruct operators managing commercial
facilities such as movie theatres, meeting halls, exhibition halls and department
stores (not including office spaces itself) to restrict visitors or prohibit symptomatic
persons to enter premises, etc. Land and housing may be requisitioned by prefectural
governors when deemed essential to establish temporary medical facilities.
•
On 31 March 2020, the Supreme Court of Japan issued guidelines for the operation
of courts in the event a state of emergency is declared. The Supreme Court has
distinguished between matters which require an urgent response (such as domestic
violence cases) and those to be treated case-by-case considering the specific
circumstances in each court.
•
Following the declaration of a state of emergency on 7 April 2020, some courts
have temporarily limited the scope of the services they provide. Although these
courts still accept new cases and continue to provide some other services, some
scheduled dates for court proceedings may be cancelled.
•
As of 20 April 2020, no new tax measures have been introduced in relation to COVID-19.
However, on 7 April, the Cabinet approved the following tax measures as part of
emergency economic measures, and new legislation is expected to be introduced shortly.
Have any changes
been made to
the laws around
property, rent and
enforcement?
Litigation
Are the courts
operating?
Tax
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 by business operators whose income has materially decreased.
– A tax refund system may be applied to firms capitalized at over 100 million yen but
below 1 billion yen through tax loss carrybacks.
– 1/2 or zero tax burden on depreciable assets to be taxed in fiscal year 2021 by small
and medium-sized businesses suffering from severe business conditions.
– 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.
Government measures in key jurisdictions
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