The government and the ruling party are planning to expand tax reduction measures next year to deduct a part of R & D expenses from corporate tax in order to support the development of new technology of companies whose sales have decreased due to the influence of the new coronavirus. Hardened.
For companies affected by the new coronavirus, the challenges are to transform operations by investing in DX = digital transformation and to research and develop new technologies and products.
However, there are concerns that the deterioration of business performance will spread the movement to refrain from investing.
For this reason, the government and the ruling party have decided to expand corporate tax reduction measures in order to support corporate R & D with the tax reform next year.
Currently, on condition that R & D is carried out jointly with universities and venture companies, a part of the R & D cost is deducted from the corporate tax amount and the tax is reduced by up to 45%.
The policy is to expand this for only two years from next year, and to deduct up to 50% of the tax amount for companies whose annual sales have decreased by 2% or more compared to before the spread of infection.
The government and the ruling party would like to support corporate R & D with tax support, given that investment in corporate R & D has been sluggish after the 2008 Lehman Brothers collapse.