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Japan considers one-year grace period for corporate taxpayers hit by virus

24 Comments

The Japanese government and the ruling parties are considering allowing a one-year grace period for corporate tax payment by small and midsize companies affected by fallout from the coronavirus, sources close to the matter said Wednesday.

The planned measure to expand the already available grace system will be part be part of their economic package to be finalized next month aimed at mitigating the impact of the spreading virus.

Currently, a company seeking a one-year grace to stay afloat needs collateral matching the amount of tax owed and is required to pay overdue tax in principle.

The relief plan under consideration will relax requirements for companies applying for a grace payment and will not levy overdue tax, the sources said.

As for consumers, the relief package is expected to include cash payments to households whose income declined for reasons related to the coronavirus epidemic, other sources said. How much such households would receive is not decided, they said.

The package and already announced stimulus measures are expected to total 56 trillion yen ($502 billion) with actual fiscal spending of 15 trillion yen, they said.

© KYODO

©2020 GPlusMedia Inc.

24 Comments
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How about the self-employed? Hello? Hellooooooo....

THUD!

0 ( +0 / -0 )

IMF suggests 15% poor people’s tax.

0 ( +0 / -0 )

The people who need the help are those who are self employed, freelance, contract workers, gig workers,. Small business. People unable to work because of the virus.

Many of the giant corporations can drive out the storm.

1 ( +1 / -0 )

How can a company get coronavirus? What about us humans? When do we catch a break? Invalid CSRF

2 ( +2 / -0 )

Always the super rich get away while the poor schmucks keep working on top of the 10%. Why not bring that back down to 8% it worked just fine. All this has accomplished by raising the consumption tax is leave less income in ordinary households.

1 ( +1 / -0 )

A typical small business of 5-6 employees, would need income of between 1.5 and 2.0 million yen each month to pay wages, premises, overheads and statutory costs like NHI. Income now is down to zero. It probably would not have paid much tax, if any, so a tax rebate is meaningless, as is a tax grace period. It may have cash reserves for a couple of months, but that's all. It needs hard cash now to offset the total loss of income. Other governments around the world are giving up to 80% of lost wages to people, not loans or tax rebates.

5-6 employees may equate to 3-4 families with children, paying rent, mortgages, and all the costs of daily life here, and they in turn pay local shops and businesses, who will in turn lose sales. Quite a multiplier effect.

3 ( +3 / -0 )

Corporate tax relief first. Farmers (LDP block voters) second. Peons who vote for the LDP last, if ever.

I would be totally unsurprised if in 2021 a sales tax increase happens — to pay for an improvement in infrastructure for the Fukushima-Coronavirus Olympics, of course.

2 ( +2 / -0 )

Even in January there was mention of acute labor shortage, since the reality of the virus has hit home, nobody is talking of labor shortage as it is inevitable that there will be massive layoffs. The question that springs in my mind is what will become of hundred of thousands of donkeys that were imported on cheap wages to alleviate they labor shortage, will they be the sacrificial lamb and placed on the chopping board like it happened during the Lehman shock.

A surge in crime is inevitable if many people lose their livelihood.

0 ( +0 / -0 )

GWToday  11:02 am JST

This post is for abe!!!

Like I have been posting for a few days now here is what YOU need to do NOW:

1 Eliminate income tax for ALL Japanese for the rest of 2020

2 Eliminate resident tax for ALL Japanese for 2020

3 from Jan 01 2021 if things are getting better, bring them back into play BUT ELIMINATE taxes on ESSENTIALS

totally agree but please change the word “Japanese” to “Tax and Pension payers in Japan”

5 ( +5 / -0 )

What about personal tax grace period?

What Michael Machida said. I would have said it, but he beat me to it.

2 ( +2 / -0 )

3rd biggest economy in the world can't even look after those who made it thus. While smaller economies manage to financially make up the workers wages.....something is wrong on donkey Island!

2 ( +2 / -0 )

This post is for abe!!!

Like I have been posting for a few days now here is what YOU need to do NOW:

1 Eliminate income tax for ALL Japanese for the rest of 2020

2 Eliminate resident tax for ALL Japanese for 2020

3 from Jan 01 2021  if things are getting better, bring them back into play BUT ELIMINATE taxes on ESSENTIALS

THERE DONE!!!

1 ( +2 / -1 )

Call me Thomas if you like. I have taken the stance Seeing Is Believing. There have been so many considerations made by government that I have lost count that even the government has lost count. Without hard questions being asked by the media it is so easy to escape scrutiny by uttering this or that is being considered.

How about the famous potential for 8,000 pcr test, are we any close? Nope.

There was 15.3 Billion yen allocated to alleviate the mask shortage, 2 months later there is still no mask, just no prospect whatsoever, everybody has given up looking for mask or asking stores when they will have them in stock.

Maybe Sharp will come to our rescue with mask. Were they in a rush to raise their share price rather than rush production? We don't know as there is no follow up.

5 ( +5 / -0 )

I heard from my parents back in New Zealand that every full time worker effected by the lock down will or have already received 600,000¥ to live on for the next 4-8 weeks. Will we get anything like that here? I highly doubt it.

6 ( +6 / -0 )

Again with the corporate tax cuts. How about the workers? They have to pay rent and mortgages. Is there any support for them?

5 ( +5 / -0 )

LDP serving their masters as usual.

7 ( +8 / -1 )

As usual big corporations will get tax discount / cancellation / grace period. People working in financial institutions will get dividends. And all that will come from regular Taro pocket. Nice nice.

5 ( +6 / -1 )

Does "Grace Period" mean I'll have to pay double tax next year? If so, I'll do my best to pay it this year. Either way I'm screwed.

Yeah, wouldn't surprise me. Nothing is free in this country.

4 ( +4 / -0 )

Does "Grace Period" mean I'll have to pay double tax next year? If so, I'll do my best to pay it this year. Either way I'm screwed.

3 ( +4 / -1 )

Same question Michael posted.

Do "normal citizens" also get a tax grace period.

Or how about a tax cut.

Or how about ..... (to be continued).

So far nothing but words, let the action(s) follow!

8 ( +8 / -0 )

What about personal tax grace period?

9 ( +9 / -0 )

Be interesting to see it actually happen. I run my own private classes and wife a pet sitter business. I’m sure you can guess, we’ve lost 50% of our monthly income. No one travels, no one needs a pet sitter. Literally happened overnight. So people please avoid large crowds. I’m really hoping Abe pulls through for use. At my age, almost no other options for income.

6 ( +6 / -0 )

Yubaru, exactly my point! Was just about to make exactly the same comment.

0 ( +1 / -1 )

Considering, working on, whatever, I wouldnt count on it until it actually becomes fact. And no doubt there will be major strings attached!

6 ( +7 / -1 )

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