TOKYO – The following is the gist of a tax reform package for fiscal 2020, compiled Thursday by Prime Minister Shinzo Abe’s Liberal Democratic Party and its coalition partner Komeito party.
The government will:
— give a 15 percent tax credit to companies that invest in infrastructure for ultrafast 5G mobile networks.
— let companies deduct from taxable income when they invest in innovative startups.
— review a small-lot, tax-advantaged investment program called Investment in the Nippon Individual Savings Account, or NISA, to prompt individuals to shift their money to investment from savings.
— give special tax deductions to single parents who have never been married and who have an annual income below 5 million yen ($46,000).