Japan Ruling LDP Formally Adopts Virus-Linked Tax Relief Package
Newsfrom JapanPolitics Lifestyle
Tokyo, April 3 (Jiji Press)--Japan's ruling Liberal Democratic Party adopted Friday a package of tax relief measures to mitigate the economic impact of the coronavirus pandemic.
The package, approved at a general meeting of the party's Research Commission on the Tax System, includes exemptions of fixed-asset and city planning taxes for small companies facing a year-on-year decrease of 50 pct or more in sales.
There will be no restrictions on the types of businesses eligible for the tax cut, and the central government will cover lost tax income at local governments.
Companies that see sales drop by 50 pct or more in three months between February and October this year will be exempt from fixed-asset and city planning taxes. For companies with a sales decrease of 30 pct to less than 50 pct, the taxes will be cut by half.
Separately, small companies with sales falling by 20 pct or more in a month between February this year and January next year will be allowed to defer by a year payments of corporate tax and social security premiums.
[Copyright The Jiji Press, Ltd.]