TaxJapan Reduces Corporate Tax Rate for SMEs Investing in Digital Transformation
The 2026 tax reform bill includes a reduced corporate tax rate for small and medium enterprises investing in approved digital transformation initiatives. Qualifying businesses can receive up to a 5% tax rate reduction on income related to digital investments, effective from April 2026.
Why It Matters: Significant tax savings opportunity for businesses upgrading to modern systems
What To Do: Consult with a tax advisor about qualifying digital investments
Ministry of Finance JapanJan 11, 2026