Submitted a proposal for tax reform for fiscal 2023

Japan Association of New Economy (located in Minato-ku, Tokyo; Hiroshi Mikitani, President, hereinafter “JANE”) submitted to the Japanese government a proposal for tax reform for fiscal year 2023.

[Summary of the Proposal]

  1. Proposals Concerning the Main Provisions
    (1) Fundamentally review the cryptographic asset taxation system (corporate tax) in addition to review corporate tax, income tax, inheritance tax, etc., in principle to reduce the tax rate of the Main Provisions.
    (2) Revise the taxation system to accommodate new work styles, etc. (e.g., revise retirement allowance taxation and spousal deduction, create a system for freelance workers and relearning)

  2. Proposals for special tax measures
    (1) New industries, new capitalism
    ・Fundamental review of the taxation of crypto assets (income tax and inheritance tax)
    ・Establishment of a tax system to promote innovation in strategic areas
    ・Review taxation system for doubling asset income
    ・Establishment of tax breaks for social investment, review of taxation system for donation

    (2) Startups
    ・Drastic expansion of incentive compensation for startups
    ・Establishment of a Japanese version of the QSBS tax system
    ・Revision of taxation system on expatriation
    ・Extension of the open innovation taxation system
    ・Revision of R&D taxation system

    (3) Digital and Human Resources
    ・Establishment of digital infrastructure (medical, logistics, telecommunication systems, etc.) innovation taxation
    ・Establishment of a digital human resource development tax credit
    ・Establishment of a tax system to promote investment in education
    ・Review taxation system for foreign human resources
    ・Establishment of a tax system to strengthen corporate cyber security systems
    ・Review of application requirements to guide policy objectives

For more details (the proposal is available only in Japanese)