Japan considers tax breaks to promote investment: Report
Published on May 3, 2014 12:25 PM
TOKYO (REUTERS) - Japan is considering expanding tax breaks and loosening some rules to promote investment in start-ups as part of the second installment of the government's economic growth strategy, the Nikkei newspaper reported on Saturday.
Japan is also likely to say next month that it will lower the effective corporate tax rate to 20 per cent from around 35 per cent currently, the Yomiuri newspaper said, citing several government sources. This could encourage firms to boost much-needed capital expenditure in Japan.
Prime Minister Shinzo Abe's government is set to announce the second part of its growth strategy next month. Investor disappointment with the first installment of the strategy last year contributed to a decline in Japanese shares.
One proposal is to expand the value of an investment that a so-called angel investor can deduct from his or her taxable income from the current limit of 10 million yen (S$122,500) to several times as much, the Nikkei reported without citing the source of its information.
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