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EXCLUSIVE: Keidanren to seek expanded tax credits for investments in startups

  • August 31, 2021
  • , Jiji Press , 11:04 p.m.
  • English Press

Tokyo, Aug. 31 (Jiji Press)–The Japan Business Federation, or Keidanren, plans to call on the government to ease requirements for large companies to receive tax breaks when making investments in startup firms, Jiji Press learned Tuesday.

 

Under the existing innovation-promoting tax program, if big companies invest 100 million yen or more in unlisted startups less than 10 years old, they will see 25 pct of their investments deducted from taxable income.

 

Keidanren will request the government to lower the minimum deductible investment amount through its tax systems reform for fiscal 2022 and extend the so-called open innovation tax program, set to expire on March 31 next year, the end of fiscal 2021, to promote digital transformation, informed sources said.

 

In addition, the country’s biggest business lobby will urge the government to consider tax breaks, such as those regarding stock options, to facilitate startups’ acquisitions of highly capable workforce, they said.

 

Meanwhile, Keidanren voiced opposition to a proposed carbon tax and suggested that the existing energy-related tax systems be overhauled.

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