Keidanren Seeks Tax Cuts for Big Firms Helping Small Businesses

Tokyo, Sept. 15 (Jiji Press)--The Japan Business Federation, or Keidanren, has called for corporate tax breaks for large firms that support partner small businesses' activities to develop human resources.

The nation's biggest business lobby included the measure in its proposals to be submitted to the government for its fiscal 2027 tax system reform package. Keidanren announced the proposals Monday.

"It is effective to work on passing down skills and nurturing young employees across supply chains" in order to enhance the Japanese industries' competitiveness, Keidanren said.

Specifically, the group will request that costs for activities such as training programs and support for obtaining qualifications at partner companies and industry organizations be counted as expenses that can be excluded from taxable incomes or deducted from corporate taxes.

Currently, such costs are treated as donations and therefore cannot be counted as deductible expenses in many cases.

[Copyright The Jiji Press, Ltd.]