With the tax reform next year, the government and the ruling party are planning to reduce the measures to encourage the introduction of high-speed, large-capacity communication standard = 5G.
The deduction rate to be deducted from corporate tax will be gradually reduced from the current 15% to 3%, but when reviewing it, consideration will be given to the progress of 5G development in rural areas.
The "5G investment promotion tax system" to encourage the introduction of 5G is a measure to deduct 15% of the related investment amount from the corporate tax for only two years until this year, but the government and the ruling party will extend the deadline by three years. On the other hand, the policy is to gradually reduce the deduction rate.
Because capital investment has progressed to a certain extent mainly in urban areas, the deduction rate when a major mobile phone company develops 5G in urban areas is
▽ next year 9%,
▽ next year 5%,
▽ next year Will be 3%.
However, when reviewing, in addition to 5G development in rural areas, consideration will be given to the development of "local 5G" that is used in limited areas such as companies and universities, and in the case of such investment, the deduction rate will be increased to
15% next year. After deferring it, it will be
▽ 9% in the next fiscal year and
▽ 3% in the following
fiscal year
.
In addition, the contents of the review of the "Open Innovation Promotion Tax System" to encourage investment in venture companies that are expected to grow in the future have been finalized through discussions between the government and the ruling party.
In addition to extending the system for two years, some of the requirements for investees that are "less than 10 years after establishment" will be relaxed, and the direction will be "less than 15 years after establishment" on condition that the ratio of research funds is high. The final adjustment is made with.