Government measures in key jurisdictions 3rd edition final - Flipbook - Page 83
Japan
Litigation
•
Following the declaration of a state of emergency on 7 April 2020, some courts temporarily
limited the scope of the services they provide.
Are the courts
operating?
•
However, as the state of emergency was lifted on 25 May 2020, some courts, including the
Tokyo District Court, have decided to resume some of their operations by taking proper
measures to prevent the spread of infection, such as social distancing and the wearing of
masks.
Tax
New tax legislation in relation to Covid-19 has been introduced, which includes the following tax
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 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.
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.
Company
law matters
•
•
Have any measures
been put in place to
accommodate social •
distancing (such as
remote general
•
meetings)?
On 26 February 2020, METI issued a guideline for hybrid virtual general meetings.
Although the guideline did not originally target the Covid-19 pandemic, it is attracting attention
from companies seeking to accommodate social distancing for the peak season for annual general
meetings in the coming June.
It is impossible under the Corporate Code to conduct a purely virtual general meeting. However, the
following measures can be taken for social distancing:
- encourage shareholders not to attend the general meeting but to vote in advance (by a voting
paper oronline),
– limit the number of attending shareholders, require pre-registration to attend, and reject
attendance by shareholders with symptoms of Covid-19, and
– hold a hybrid virtual general meeting (i.e., a real meeting with online streaming) pursuant to
the METI guideline in order to allow remote attendees to participate in the meeting.
•
The Corporate Code doesn’t require a company to hold a physical board meeting; an online
meeting and/or a resolution in writing are commonly used by Japanese companies.
•
The Japanese government has been encouraging remote working in light of Covid-19 and it has
rapidly developed across the country. There are subsides for business operators who will introduce
or have introduced a remote working system, especially for mid- or small-sizebusinesses.
Government measures in key jurisdictions
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