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Navigating Japan’s Tax Dilemma: The Implications for Businesses and the Future of Japanese Economy

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In the wake of increasing scrutiny on Prime Minister Kishida’s cabinet, it appears that an increase in consumption tax may be looming in Japan’s future. Interestingly, the term ‘消費税’ (shouhizei) in Japanese translates to two different terms in English: ‘Sales Tax’ and ‘Consumption Tax’. Despite common belief among Japanese citizens, finance officials, and even accounting experts that it’s a consumption tax, the reality is that Japan’s ‘消費税’ functions more like a sales tax.

A sales tax, unlike a consumption tax, is borne by businesses, not consumers. This means that Japan’s consumption tax is not merely a pass-through charge as widely believed. When companies prepare their tax filings, salaries paid to employees cannot be deducted from this tax, which limits the ability of businesses to increase wages.

Consequently, salaries in Japanese companies have not seen significant increases over the past 30 years. With the current political climate, it’s unlikely that this will change in the near future, largely due to a fundamental misunderstanding of the accounting principles behind the consumption tax. This misunderstanding and the resultant fiscal policies could continue to stifle wage growth and impact the Japanese economy.

#JapanEconomy #TaxPolicy #ConsumptionTax #SalesTax #JapanesePolitics #BusinessImpact #EconomicGrowth #FiscalPolicy #WageStagnation #FinancialAwareness

Expo 2025 and the Uncertain Future of Japanese Politics

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In recent times, there has been a noticeable increase in negative reporting surrounding Expo 2025. While some of these reports may be based on certain truths, it is believed that they are underpinned by the strategies of Japanese bureaucrats.

It appears that bureaucrats, perceiving Prime Minister Kishida’s influence as waning, are now intent on releasing all negative information at their disposal. By spring of next year, it is anticipated that a slew of unfavorable reports, including those pertaining to political corruption, will emerge.

In such a scenario, the prospects for salvaging Prime Minister Kishida’s position seem bleak. His scheduled visit to the United States in the spring of 2024 is likely to be the last highlight of his political career.

However, it is expected that following this visit, the negative press around the Osaka Expo will subside. From the spring of 2024, when the cherry blossoms bloom, we look forward to welcoming wonderful talented foreign individuals from around the world to Osaka, bringing new vigor and perspectives.

#Expo2025 #JapanesePolitics #KishidaAdministration #InternationalRelations #OsakaExpo #PoliticalShifts #InternationalCooperation #GlobalLeaders #NewHorizons

Cultural Insights: The Life of a Japanese Salaryman

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Yesterday, I had the opportunity to visit the home of an Indian client and engage in some work. The lady of the house, who has been in Japan for three months, shared her observations with me.

“Japanese people seem to work incredibly hard. I often see them in cafes, deeply engrossed in their work on laptops. I imagine Japanese companies must be quite strict.”

I took a moment to explain the nuances of Japanese work culture to her.

“What you’re observing are ‘salarymen.’ Indeed, Japanese corporate culture is known for its rigor. Interestingly, it’s not just the workplace that’s demanding – Japanese wives are known to be quite strict too. This makes the life of a Japanese man quite challenging.”

She listened intently, trying hard to suppress her laughter, clearly intrigued by my explanation.

“It’s this dual pressure from both work and home that makes the moments in between so crucial. That’s why, before heading home, Japanese salarymen often unwind by having drinks with colleagues. It’s a brief yet significant respite from their disciplined lives.”

#JapaneseCulture #SalarymanLife #WorkLifeBalance #CulturalInsights #JapanWorkEthic #CorporateCultureJapan #DailyLifeJapan

Exploring the Rich Artistic Heritage of Kyoto’s Shijo Street

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The Edo period (1603-1868) in Japan witnessed the rise of many remarkable artists, among whom Ito Jakuchu (1716-1800) holds a special place. Known for his unique style and rich use of color, Jakuchu’s works continue to inspire awe and admiration. Living on Kyoto’s Shijo Street, he might have crossed paths with another great painter of his era, Nagasawa Rosetsu, who also resided on the same street.

Today, Shijo Street, just a few hundred meters long, is lined with souvenir shops for foreign tourists. At first glance, these shops might appear ordinary and outdated, yet, upon closer inspection, one discovers stores with remarkable design and rich historical backgrounds. This blend of the old and the new, where history meets contemporary design, is what makes Shijo Street uniquely captivating.

In my quest to bring the essence of Japan’s rich cultural heritage into the homes of our foreign clients, I find myself drawn to these shops on Shijo Street. Here, amidst the bustling tourist trail, are treasures of interior decor that not only reflect the traditional artistry of Japan but also resonate with modern aesthetics. Each piece sourced from these stores carries with it a story, a piece of history, and a touch of the artistic genius that once roamed these streets. It’s in these artifacts that the spirit of Ito Jakuchu and the legacy of Shijo Street continue to live on, bringing timeless elegance to contemporary living spaces.

#ItoJakuchu #JapaneseArt #KyotoHeritage #CulturalExploration #InteriorDesign #ShijoStreet #ArtisticLegacy #EdoPeriodArt #TraditionMeetsModern #InspirationInEveryCorner

Celebrating the Thai King’s Birthday with Esteemed International Guests

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Last night, We had the honor of attending the reception for the birthday of the King of Thailand. It was a delightful experience to mingle with our foreign clients, all of whom I find to be truly exceptional individuals. They are well-educated and possess outstanding personal qualities.

One thing I noticed is the pride that Thai people have in being citizens of the Kingdom of Thailand. Additionally, they are extremely delighted when Japanese and other foreigners speak Thai, a gesture of respect and connection that transcends cultural barriers.

Representatives from various countries were present to pay their respects to the Thai Kingdom. Despite their busy schedules in Japan, I hope they take the time to immerse themselves in Japanese culture and history and enjoy some leisurely tourism. It’s a wonderful opportunity to deepen international relationships and understanding.

#ThaiKingdom #CulturalDiplomacy #InternationalRelations #CrossCulturalExchange #Respect #GlobalCommunity #Networking #CulturalAppreciation #Japan #ThaiCulture

Addressing Challenges in Real Estate and Expo Pavilion Construction

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he photo is of The Kitahama, a residential building our company leases to foreign diplomats.

Recently, a friend reached out to me via LINE, concerned about a news report regarding an incident at the Yokohama Arena, managed by a Tokyo-based real estate firm specializing in foreign clientele.

He questioned, “Why do such terrible incidents frequently occur in the real estate sector?”

My clientele mainly comprises foreign governments and multinational corporations, known for their impeccable manners and integrity. We’ve never encountered fraud or similar issues.

I explained to my friend that real estate transactions often involve high stakes and complex dealings, making the field susceptible to fraudulent activities and disputes. The physical nature of real estate, entangled with intricate legal rights and land issues, often becomes a ground for conflict.

Understanding dawned upon him as he responded with a simple “I see.”

Expert opinions suggest that the stagnation in the construction of foreign pavilions for the Osaka Expo is largely due to numerous brokers mediating between foreign governments and Japanese construction companies.

If this is indeed the case, a critical examination and restructuring of these intermediary broker roles might be essential for progress.

#RealEstateIntegrity #Expo2025 #OsakaExpo #ConstructionChallenges #BrokerMediation #BuildingTrust #ProjectManagement #GlobalStandards

The Timeless Beauty of Tamba Pottery: A Blend of Tradition and Modern Elegance

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In the world of ceramics, Tamba pottery from Hyogo Prefecture stands out with its 800-year history dating back to the Kamakura period. Among pottery enthusiasts, Japan’s Tamba ware is renowned for its global acclaim.

Yesterday, I had the privilege of purchasing a variety of pieces directly from the 9th generation potter, Mr. Kunihiko Onishi. Receiving explanations directly from Mr. Onishi made the experience both enlightening and enjoyable.

At our company, we take pride in offering traditional Japanese pottery as part of the furnishing in our rental properties for foreign clients. These exquisite pieces serve not only as functional dinnerware but also as elegant room decor.

One might wonder, what makes using Tamba ware different from regular, mass-produced dishes available for as low as 100 yen?

1. Enrichment of the Soul: Using cups and plates from Tamba enriches one’s daily life. It’s an experience we recommend everyone to try when visiting Japan.
2. Nurturing Love in Children: The beauty of fine tableware can play a role in nurturing affection and preventing juvenile delinquency.

The natural beauty of Tamba ware is part of its allure. The Japanese tradition of tea culture flourished from the Muromachi to Edo periods, partly due to the warmth and care put into Tamba pottery, fostering a culture of hospitality and kindness in Japanese tea rooms.

Unlike electric kilns, Tamba pottery is wood-fired, allowing for the serendipity of nature to play a role in the design, often resulting in unexpected and unique colorations.

Diversity and Originality in Shape: Handcrafted pottery directly reflects the intentions and skills of the artist, leading to unique shapes and designs that enhance the allure of ceramics.

Expressiveness of Glaze: The glaze gives pottery its color and texture. Variations in the type of glaze, application method, and firing conditions can produce vastly different appearances from the same clay.

The Sensibility and Story of the Artisan: Each piece of pottery is imbued with the sensitivity, background, and story of its maker, giving each creation its unique personality and allowing us to feel the heart of the artist.

Embracing Tamba pottery in our offerings is our way of connecting our clients with the rich heritage and artistic expression of Japan.

#TambaPottery #JapaneseArt #CulturalHeritage #HandcraftedElegance #HomeDecor #TraditionalCraftsmanship #InteriorDesign #LuxuryLiving #ExpatLife #CulturalAppreciation #JapaneseCeramics #ArtisanalExcellence #OsakaExpo #CulturalExchange

The Architectural Wonders of Japan and Challenges at Expo 2025 Osaka

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In the picturesque city of Kyoto, the historic Kiyomizu-dera stands as a testament to ancient Japanese architectural techniques. Captured in this image from their official website, the temple is renowned for its construction without the use of a single nail, showcasing remarkable earthquake resistance.

Turning our attention to the Osaka Expo 2025, the budget for the Grand Ring is an astonishing 36 billion yen. Dividing this by the ring’s circumference:

2 km / 360 = 5 m

This equates to approximately 0.1 billion yen per 5 meters of the ring. However, architectural experts, after evaluating the costs of wood, concrete, and labor, estimate the market price for such a structure in Japan to be around 9 to 10 billion yen. Adding a 20% markup and a 10% consumption tax, with the involvement of five intermediary companies, the calculations seem to align perfectly.

Concerns arise with the use of raw wood, which is vulnerable to rain damage. Even a single month of Japan’s rainy season in June can significantly wear down the wood, necessitating protective coatings.

Interestingly, the nail-free construction of Kiyomizu-dera is not only a hallmark of traditional craftsmanship but also a strategy to prevent rusting of metal components. Conversely, for the Grand Ring of the Expo, the wooden joints seem to incorporate metal fastenings, deviating from the purely traditional methods.

#JapaneseArchitecture #KiyomizuTemple #Expo2025Osaka #GrandRingProject #CulturalHeritage #InnovativeConstruction #ArchitecturalChallenges #SustainableDesign #HistoricalPreservation #KyotoBeauty #OsakaExpoPreparations

Osaka Expo 2025: A Looming Crisis in Construction and Awareness

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As the 2025 Osaka Expo approaches, there is growing concern that the construction of pavilions may not be completed in time. The potential for rushed organization raises doubts about attracting local Japanese visitors.

In the April 2023 local elections, Osaka’s political party, Osaka Ishin no Kai, won decisively, leveraging unrealistic propaganda about transforming Yumeshima into an international tourist city through a casino project, all while deliberately keeping the residents of Osaka Prefecture unaware of the significant issues plaguing Yumeshima.

Many Osaka residents, known for their reserved nature, remain oblivious to being misled. Additionally, foreign pavilion construction managers are still in the dark about the complexities of Yumeshima, due to the lack of communication from the Japanese side.

Numerous brokers with limited architectural knowledge still mediate between these foreign managers and Japanese construction firms, hindering progress. As these discussions continue, international teams will gradually become aware of Yumeshima’s serious problems, potentially leading to disputes, especially among those eager to showcase their country’s uniqueness in Type A pavilions.

Eventually, the reality of the Expo and casino’s failures will become unavoidable for even the most reserved residents of Osaka. This situation could escalate to one of the most significant political scandals in post-war Osaka.

#OsakaExpo2025 #ConstructionCrisis #PoliticalScandal #YumeshimaChallenge #ExpoPreparation #GlobalAwareness #LocalPolitics #InternationalParticipation #ExpoDesignDilemmas #CommunityAwareness

Challenges in Expo 2025 Pavilion Construction Highlighted by Japan Construction Association Chair

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At a recent press conference, Mr. Hiroyuki Miyamoto, the chairman of the Japan Construction Association and president of Shimizu Corporation, expressed serious concerns about delays in the construction of foreign pavilions for the 2025 Osaka-Kansai Expo. He believes that the deadline for commencement has already passed and urged countries to quickly provide detailed designs and budget-backed orders.

The construction of foreign pavilions faces challenges such as rising material costs and labor shortages, leading to delays in contracts between countries and construction companies. Particularly, the independently designed ‘Type A’ pavilions require more time and manpower, making a shift to the prefab ‘Type X’ pavilions or simplifying ‘Type A’ structures increasingly practical.

Miyamoto mentioned that countries still wishing to start discussions with construction companies for a traditional ‘Type A’ pavilion would face difficulties unless they have a simple structure planned or have secured materials. Without special circumstances, completing these pavilions in time for the Expo’s opening could be challenging.

(Source Sankei Newspaper )

https://www.sankei.com/article/20231127-COJU3TV5EBKRLK2TJE465U6PFI/

#Expo2025 #PavilionConstruction #JapanConstructionAssociation #ConstructionChallenges #OsakaKansaiExpo #InfrastructureDevelopment