The Japan Association of New Economy (JANE) announced on September 10, 2025, its recommendations for tax reform in fiscal 2026. The outline of the recommendations is as follows.

 

[Basic Approach to Tax System in General]

~Lowering tax rates to revitalize the Japanese economy, increasing tax revenue to reinvest domestically~

JANE has proposed three pillars to realize this “virtuous cycle of taxation and growth” along with corresponding tax reform recommendations for each.

1 Promoting Domestic Investment

Revitalize the economy by attracting investment to Japan from both domestic and overseas sources by lowering the tax rate. Foster new industries suited to the “virtual economy” by strengthening R&D tax incentives and supporting AI development and utilization.

2 Support for Startups and Productivity Improvement
Promote innovation and raise overall economic productivity through startup support, digital transformation (DX), and other measures.

3 Strengthening the Competitiveness of Domestic Industries

Revise tax systems that place Japanese companies at a disadvantage when competing with overseas firms. Achieve a level playing field (Equal Footing) in taxation with overseas digital service providers targeting the Japanese market. 
 

【Specific Measures】

●Promoting Domestic Investment
・Lowering corporate tax, income tax, and inheritance tax rates

・Establishing tax systems to strengthen AI development and promote its utilization

・Enhancing R&D tax incentives to promote innovation

・Tax systems to encourage software investment

・Improvement of the tax incentives for promoting wage increases

・Adjust tax systems for inflation (review thresholds and ranges)

・Tax systems to encourage reform competition among municipalities and deepen regional revitalization
・Tax measures to attract overseas investment in domestic (regional) areas

● Support for Startups and Improvement of Productivity

・Improving systems to support startups

・Establishing social investment tax credits and revising donation tax systems

・Revising tax systems to promote diverse work styles and strengthen labor supply

・Expanding tax systems to encourage corporate investment in education

・Revising tax systems for strategic utilization of international talent

・Improving tax payment environments to strengthen management capabilities of SMEs and small businesses

・Utilizing invoices to achieve digital seamless transactions

●Strengthening the Competitiveness of Domestic Industries

・A corporate tax system that does not hinder corporate restructuring

・Crypto asset taxation system

・Adaptation to cross-border economies (corporate tax, income tax, consumption tax)