Japan to Introduce Tax Deduction for 5G Promotion

Tokyo, Dec. 11 (Jiji Press)--Japan's government and ruling coalition plan to allow companies to deduct 15 pct of investments related to the development of fifth-generation, or 5G, superhigh-speed wireless communications networks from corporate tax, informed sources said Wednesday. The move is designed to help Japan lead the development of 5G networks, said Akira Amari, chairman of the ruling Liberal Democratic Party's tax panel. The LDP panel was previously considering a 9 pct tax deduction. Businesses eligible for the preferential tax treatment are expected to include major mobile phone carriers setting up 5G base stations and companies planning to use 5G networks in specific fields such as at factories, the sources said. The LDP and its coalition partner, Komeito, plan to include the preferential treatment in their fiscal 2020 tax system reform package, due out Thursday, the sources said. Under the tax breaks, eligible companies will be allowed to get the 15 pct tax deduction or book 30 pct of related investments as expenses to reduce income tax. END