ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintSite TitleTitle ChevronIcon Twitter
5G networks

Japan weighs 15% tax credit to accelerate 5G investment

Ruling party pushes for development of key network to compete with foreign rivals

Japan's moves to get ahead in the 5G race are to step up a gear with a proposed tax credit for investors in infrastructure.   © Reuters

TOKYO -- A planned tax credit for companies investing in Japan's 5G next-generation wireless technology network infrastructure has increased to a recommended 15%, Akira Amari, who chairs the ruling party's tax research commission, said Wednesday.

Companies can also choose 30% bonus depreciation instead of the 15% tax credit under the proposal. The new figure marks an increase from the 9% Amari announced on Monday.

The ruling Liberal Democratic Party aims to include the proposal in its tax revision outline for 2020.

The party commission has expanded the size of the tax credit to show the government's commitment to key technologies that could affect national security.

"There is a big competition around the globe to swiftly develop the new telecommunications infrastructure. The Japanese government needs to be all in to accelerate it," Amari told reporters when asked why the size of the tax credit had grown in a matter of days.

The tax incentives would for a three-year period benefit licensed mobile phone companies and others who build wireless communication networks for areas such as those occupied by factories.

The government will devise new tax rules based on the commission's proposal and will decide on the specific requirements for companies that wish to apply.

Companies would be required to submit their 5G network plans and get approvals from appropriate ministries. The commission will also call for those companies to hasten their efforts.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends July 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media