The government and the ruling party have announced that in the next fiscal year's tax reform, in order to create a flow for the growth of start-up companies, preferential corporate tax treatment will be applied when domestic companies invest in start-up companies or conduct joint research. We have decided to expand our measures.
When a domestic company acquires shares of a start-up company, 25% of the acquisition cost can be deducted from the corporate tax liability if certain conditions are met.
However, until now, it was limited to cases such as paying in funds to start-up companies to acquire newly issued shares.
Regarding this, the government and ruling parties have established a policy to apply preferential treatment even when acquiring issued shares.
In that case, we will acquire a majority of the stock and acquire it, and the conditions
will be that the sales of the start-up company will grow by 1.7 times or more within the next five years, and
▽ R&D expenses will increase by 2.4 times or more. .
The aim is to create a flow for further growth of startup companies while receiving support from acquired companies.
At the same time, the government plans to expand the corporate tax deduction system for research and development expenses jointly conducted by companies with start-up companies.
Until now, this system limited joint research partners to start-up companies that received funding from funds certified by the Minister of Economy, Trade and Industry, but the government and ruling parties are planning to significantly relax the conditions for partners.
This is intended to encourage large companies to actively engage in joint research with start-up companies.