Japan Ruling Bloc Approves FY 2020 Tax Reform Outline
Newsfrom JapanPolitics Lifestyle
Tokyo, Dec. 12 (Jiji Press)--Japan's ruling coalition on Thursday approved an outline of fiscal 2020 tax system reform that emphasizes measures to address child poverty and promote business investment including in fifth-generation, or 5G, wireless communication equipment.
According to the reform outline, the existing tax break program for single parents, which is currently available to divorced parents and those whose spouses have died, will be expanded to cover unmarried parents.
Single parents with annual incomes of 5 million yen or lower will be granted deductions of up to 350,000 yen from their taxable incomes. The 5-million-yen income condition currently applies to single fathers only, but will also be imposed on single mothers.
The reform outline also includes a so-called open innovation tax relief program that allows deductions from taxable incomes of 25 pct of investments in less-than-10-year-old startup firms.
Eligible for the new program will be large companies with investments of 100 million yen or more and smaller firms with 10 million yen or more. They will be required to hold shares in startups for at least five years.
[Copyright The Jiji Press, Ltd.]