Japan Eyes Post-M&A Tax Breaks for Small Businesses
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Tokyo, Nov. 18 (Jiji Press)--The Japanese government and ruling coalition have started discussing tax breaks for merged midsize and small companies.
The administration of Prime Minister Yoshihide Suga has hammered out a plan to establish a taxation system to facilitate mergers and acquisitions involving small businesses to improve productivity.
The administration now finds it necessary to provide tax relief to merged firms as well to help them invest in equipment and facilities and secure employment, informed sources said.
Such tax breaks are also aimed at enabling smooth business succession at a time when many owners of small business are having trouble finding their successors, the sources pointed out.
According to the sources, under discussion are tax cuts for investments in equipment and facilities to manufacture new products by combining technologies of acquired and acquiring companies and for setting up unified systems for material procurement and sales administration.
[Copyright The Jiji Press, Ltd.]