Demand for tax reform for the next fiscal year: Corporate support for the blow in Corona

Request for tax reform for the next fiscal year Corporate support in Corona will also be announced on September 26 at 4:13 a.m.

Requests from ministries and agencies regarding tax reform for the next fiscal year will close on the 30th of next week. This includes measures to avoid increasing the burden of property taxes in order to support companies affected by the new coronavirus.
The next fiscal year’s tax reform will focus on how to support companies ingthroes due to the effects of the new coronavirus.

Of these, the Ministry of Land, Infrastructure, Transport and Tourism has decided to call for measures to prevent companies from increasing the burden of property taxes on land.

Property tax is a system that reviews the valuation value that is the basis of the tax amount every three years, and it is supposed to be taxed based on the land price public notice in January because land prices tended to rise before the spread of infection for three years from next fiscal year.

Under the current system, the amount of taxation is expected to increase, especially for companies in urban areas, so we are calling for a review, including deferring the valuation value.

In addition, as the number of business owners who are thinking of voluntarily going out of business increases, the Financial Services Agency will seek measures to support the movement to take over the business to a third party that is not a relative.

Specifically, it calls for a 20% taxation of profits in the event that a manager transfers shares to a third party for business succession.

In addition, the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism are calling for an extension of the deadline for applying the Eco-Car Tax Reduction, which reduces the tax rate of the “automotive weight tax” that is taxed during vehicle inspections for fuel-efficient vehicles, as of the end of April next year.

The government and the ruling party have decided to revise the tax system for the next fiscal year at the end of the year based on the requests of ministries and agencies.