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Ministry of Economy, Trade and Industry (METI) FY 2017 Tax Reform Requests

August 2016
The Ministry of Economy, Trade and Industry

  • METI requests tax reforms to improve Japan’s business environment.
  • The ruling parties will decide the Outline of Tax Reform in December.

Major requests

  1. R&D tax credit
    • Provide tax credit for R&D targeting development of high-value added services to promote the fourth industrial revolution.
  2. Business restructuring
    • Exempt certain business restructuring methods, such as corporate spin-offs, from tax to promote business reorganization in Japan.
  3. Attracting highly-skilled expatriates
    • Revise inheritance tax for highly-talented expatriate workers to attract more interest in Japan.
  4. Scheduling flexibility for shareholders’ meetings
    • Revise reporting dates for corporate tax returns to allow flexibility in organizing shareholders’ meetings.
  5. Overhaul of automobile taxation
    • Extend tax incentives for eco-friendly automobiles and green tax incentives. Lower overall automobile tax rate.

Reference