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Outline of the Ministry of Economy, Trade and Industry’s (METI) FY2018 Tax Reform Plans

December 2017
The Ministry of Economy, Trade and Industry (METI)

  • The Cabinet has approved an Outline for Tax Reform which fully reflects METI’s requests.
  • Based on this Outline, the Diet will begin deliberations on enacting legislation to reform Japan’s tax system.

1. Reduce corporate tax rate

  • Effective corporate tax rate to be reduced to as low as 25%, from the current rate of 29.74% (FY2018) for companies proactively engaging in wage increases and capital investment.
  • Companies also proactively engaging in advanced IT investment will be eligible for further tax reductions, bringing the effective rate down to as low as 20%.

2. Promote investment in IT

  • Provide tax credit or special depreciation for advanced IT investment to spur growth as part of the Forth Industrial Revolution.

3. Ease taxation of business succession

  • Over the next ten years, accelerate the business succession process by significantly extending tax relief covering inheritance taxes on business assets.
Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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