Japan Tax Agency Announces Grace Period Eligibility for Businesses

The Japanese National Tax Agency April 23 announced the grace period eligibility requirements for businesses experiencing economic hardship. The announcement includes that: 1) businesses can apply for a one year grace period to defer tax payments, subject to conditions; 2) grace periods can be extended by an additional year, depending on the circumstances; 3) taxpayers must show an intention to pay taxes, and that a lump sum payment would make it difficult to continue business; 4) collateral must be provided for the amount deferred, unless doing so would significantly disrupt business continuity; and 5) during the grace period, delinquent taxes ...