ANNOUNCEMENT 01 Apr 2017

The Ministry of Economy, Trade, and Industry (METI) made their 2nd revision to the Research and Development Tax Credit System as part of their 2017 fiscal plan.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

METI (2019) 研究開発税制 R & D tax system
Available at:
https://www.meti.go.jp/policy/tech_promotion/tax/29FYRDzeisei.pdf

Inception date: 01 Apr 2017 | Removal date: open ended

Tax or social insurance relief

The Ministry of Economy, Trade, and Industry (METI) made their 2nd revision to the Research and Development Tax Credit System as part of their 2017 fiscal plan. The changes were made in order to further support Japan's Abenomics principles which seek to put Japan as the leader in what they believe will be the 4th major industrial revolution. The changes to the tax credit system are as follows...

  1. Covering the expenses of research and development in the services of the Fourth Industrial Revolution (Experimental Research Expenses)
  2. Non-Open Innovation Initiative tax credit will now be 6-14% for large companies and 12-17% for SMEs. Instead of the previous 8-10% as previously issued. 
  3. SME new limit for tax credits is set from 12-25%

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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