The Japanese government will promote a scheme to defer tax on companies’ gains from selling non-core businesses. The scheme is intended to encourage companies to streamline low-return businesses and smoothly redeploy management resources to key growth areas such as artificial intelligence (AI) and semiconductors, strengthening the competitiveness of Japanese companies..

The Japanese government announced plans to promote a scheme that would defer taxation on companies’ gains from selling non-core businesses for a specified period, and outlined a policy to encourage the streamlining of low-return businesses and the redeployment of resources to key growth areas such as AI and semiconductors.