Research Commission: Tax and Companies

research commission: The plan is set to be a key part of tax system reform for fiscal 2020, which starts next April, according to The Japan Times. Nurturing startups will lead to innovation by companies, Akira Amari, chairman of the ruling Liberal Democratic Party's Research Commission on the Tax System, told reporters. The income deduction would be offered for investments of 100 million or more by large companies and 10 million or more by smaller ones, the sources said. ; The tax relief is designed to encourage companies to utilize their cash reserves for investment in a way that revitalizes the nation's economy. Amari suggested that the expected tax revenue decline from the deduction would be covered by scaling down a tax break for large companies' entertainment expenses. Companies would be required to keep holding shares in startups for at least five years after investment in order to prevent them from abusing the tax break, the sources said. The startups set to be covered by the investment tax break will be unlisted businesses founded less than 10 years ago that do not belong to groups led by large companies. (news.financializer.com). As reported in the news.