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.