Japan's tax revision to boost economy, encourage investments

Thursday 12 December 2019 10:29 CET | News

Fraud Prevention and Online Authentication Report 2019/2020

Japan has unveiled tax measures that aim to encourage companies to spend their cash on startups and other investments to stimulate a slowing economy, according to Reuters.

Fraud Prevention and Online Authentication Report 2019/2020

The measure also intends to help Japanese businesses to compete with China’s advance in 5G technology. The annual tax revision for fiscal 2020 focused on steps to encourage Japanese companies to spend their internal reserves of over USD 4.23 trillion, lawmakers said.

For years Japanese companies have been sitting on a record cash-pile as they remain wary about boosting wages and investment. Japanese companies eligible for the tax incentive will include mobile phone operators, and those preparing 5G networks for smart factories and smart agriculture using artificial intelligence in rural areas.

The tax revision for the next fiscal year also includes preferential treatment for companies investing in businesses focusing on innovative technologies.

The new scheme will also allow businesses that invest 100 million yen or more in startups established less than a decade earlier, to deduct 25% of that investment from taxable income.
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Keywords: tax measures, Japan, investments, startups, artificial intelligence, 5G, innovative technologies
Categories: Banking & Fintech
Countries: Japan
This article is part of category

Banking & Fintech