Japan offers tax breaks to firms that digitise

Japan is considering offering tax incentives to companies that adopt digitalisation. The pandemic highlighted a need for firms to digitalise to improve their productivity, which prompted the government to consider steps to support their business reforms by digital technology, public broadcaster NHK reported. Prime Minister Yoshihide Suga has made “digital transformation” in the nation a key pledge, aiming to streamline business and government processes and spur the country’s economy. The government plans to discuss details of corporate tax breaks to be included in next fiscal year’s tax revision, targetting mainly mid-sized companies to promote their digital investment, NHK said. — Reuters