The Japanese government indicated that it plans to include in its tax reform proposals a plan to defer indefinitely the payment of corporate tax on gains from the sale of non-core businesses, thereby promoting the streamlining of non-core businesses and the redeployment of funds into core-business M&A.
The government is considering including in its tax reform proposals a plan to defer indefinitely the payment of corporate tax on gains from the sale of non-core businesses. The reported aim is to encourage the disposal of non-core assets and reinvest the resulting funds in M&A involving core businesses.
The move is reportedly intended to promote the streamlining of non-core businesses while encouraging companies to direct their funds toward core-business M&A. Details of the specific system design and scope of application remain pending further reports.