Newsfrom Japan
Aug 30, 2025 08:00 (JST)
Tokyo, Aug. 30 (Jiji Press)–Japanese government agencies and ministries have submitted their tax system reform requests for fiscal 2026, including steps in support of companies affected by the high tariff policy of the United States.
The ruling Liberal Democratic Party and its coalition partner, Komeito, will screen the requests at their tax panels, aiming to draw up late this year tax reform guidelines for the fiscal year starting next April.
To enact related legislation, however, the ruling parties, now short of the majority in both chambers of the Diet, Japan’s parliament, need to make coordination with the opposition camp, which is calling for large-scale tax reductions.
The industry ministry requested five-year tax measures to spur corporate capital spending. Specifically, it called for expanding the system allowing companies to deduct a certain proportion of investment from corporate tax payments. The ministry also aims to make lump-sum depreciation for facilities and equipment possible.
The ministry also sought to extend a temporary measure under the system that reduces corporate tax burdens related to research and development activity, in order to help enhance the international competitiveness of Japanese companies.
[Copyright The Jiji Press, Ltd.]