The Japanese government intends to punish large foreign IT companies that do not open official representative offices in the country. Reportedly Google, Meta*Twitter and 45 other companies were due to open representative offices in Japan in March, but some of the IT giants still haven’t done so.
It is reported that in early June, Japan’s Ministry of Justice issued a repeated request for foreign companies to set up official representative offices by June 13. The message also said that if the said requirement was not met, the department would go to court.
The Japanese authorities believe that if there are official representative offices of foreign IT companies in the country, it will be easier to interact with them and it will be more convenient for consumers to contact them in case of problems, such as B. Defamation on social networks. Local legislation requires foreign companies doing business in Japan to open official representative offices at all times.
At the same time, foreign IT companies say that they provide services on the Internet and do not constantly develop their business, and therefore do not see any reason to establish representative offices in the country. The IT giants’ position is strengthened by a relatively small fine (around $7,400) earmarked for violating the above provision.
According to available data, some of the companies on the list have completed the process of establishing an official representative office in Japan. As of June 15, not everyone did this – among the violators of Google, Meta* and Twitter. Presumably, foreign companies are in no hurry to organize representative offices, fearing an increase in the tax burden.
* It is included in the list of public associations and religious organizations for which the court made a final decision, activities on the grounds of Federal Law No. 114-FZ of July 25, 2002 “On Combating Extremist Activity”.