2024 tax reform series—proposed new and revised tax incentives Dbriefs Podcasts
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- Business
In the 2024 tax reform proposals, Japan's Ministry of Finance announced its intention to introduce two new tax incentives for strategic investment and innovation, and proposed amendments to the existing carbon neutrality incentive, as follows:
• Strategic investment: Aimed at encouraging corporate investment in digital transformation, green transformation, and economic security. The government has identified five key products crucial for Japan's global competitiveness.• Innovation box: Targets intangible properties like patents and covers intellectual property transfers and license transactions, with certain limitations.•Carbon neutrality: Would extend incentives for two more years, with revisions focused on direct contributions to improving a company's carbon productivity. Eligible assets would be refined to prioritize investments with a more direct impact on carbon neutrality.
In this episode of The Japan Perspective, Deloitte Japan's tax professionals Joanna Hazel and Masaaki Miura emphasize Japan's alignment with global trends, its commitment to aggressive carbon reduction goals, and the benefits for companies aligning their strategies with the evolving incentive landscape. The Japan Perspective is Deloitte Japan’s podcast series committed to communicating the latest Japanese tax developments and their potential impact on foreign multinational companies operating in Japan.
In the 2024 tax reform proposals, Japan's Ministry of Finance announced its intention to introduce two new tax incentives for strategic investment and innovation, and proposed amendments to the existing carbon neutrality incentive, as follows:
• Strategic investment: Aimed at encouraging corporate investment in digital transformation, green transformation, and economic security. The government has identified five key products crucial for Japan's global competitiveness.• Innovation box: Targets intangible properties like patents and covers intellectual property transfers and license transactions, with certain limitations.•Carbon neutrality: Would extend incentives for two more years, with revisions focused on direct contributions to improving a company's carbon productivity. Eligible assets would be refined to prioritize investments with a more direct impact on carbon neutrality.
In this episode of The Japan Perspective, Deloitte Japan's tax professionals Joanna Hazel and Masaaki Miura emphasize Japan's alignment with global trends, its commitment to aggressive carbon reduction goals, and the benefits for companies aligning their strategies with the evolving incentive landscape. The Japan Perspective is Deloitte Japan’s podcast series committed to communicating the latest Japanese tax developments and their potential impact on foreign multinational companies operating in Japan.