Japan tax revision targets corporate cashpile to spur spending, 5G investment

TOKYO: Japan unveiled tax measures on Thursday aimed at encouraging companies to spend their cash piles on start-ups and other investments and stimulating a slowing economy, while also helping firms to compete with China’s advance in 5G technology.

The annual tax revision for fiscal 2020, formally decided by the ruling Liberal Democratic Party (LDP) and its coalition ally Komeito party, focused on steps to encourage Japanese firms to spend their internal reserves of over 460 trillion yen ($4.23 trillion), lawmakers said.