Government measures in key jurisdictions 4th edition - Flipbook - Page 84
Japan
Litigation
•
Are the courts
operating?
Following the declaration of a state of emergency on 7 April 2020, some courts temporarily
limited the scope of the services they provide.
•
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.
•
For the purpose of preventing the spread of COVID-19, there may be changes with respect to
some services available at courts so it is advisable to check with the court in charge of one’s case
before visiting the court.
Tax
New tax legislation in relation to Covid-19 has been introduced, which includes the following taxmeasures.
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
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
Have any measures
the coming June.
been put in place to
It is impossible under the Corporate Code to conduct a purely virtual general meeting. However, the
accommodate social •
following measures can be taken for social distancing:
distancing (such as
•
- encourage shareholders not to attend the general meeting but to vote in advance (by a voting paper or
remote general
online),
meetings)?
– 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.
Board Meetings: The Corporate Code doesn’t require a company to hold a physical board meeting; an
online meeting and/or resolution in writing are commonly used by Japanese companies.
Remote Working: The Japanese government has been encouraging remote working in light of Covid19 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-size businesses.
Government measures in key jurisdictions
84