On 12 December 2019, the Japanese government announced tax reform plans for 2020 providing new tax incentives to promote investment.
The tax reform includes incentives to invest in 5G wireless technology, including a 15% tax deduction for investments by qualified operators and companies that use 5G networks for smart manufacturing and agriculture.
There are also incentives to invest in innovative technology start-ups, including a 25% tax deduction for investments in qualified start-ups under the age of 10, with a minimum investment requirement of JPY 100 million for large corporation investments and JPY 10 million for investments by small and medium-sized enterprises.
