▼Taxation (Creation of An Innovation Box Tax Credit) Corporations filing blue tax returns are allowed to deduct up to 30% of capital gain and license income from intellectual property rights (patents and copyrights of AI-related programs) that they have researched and developed in Japan for each fiscal year beginning on April 1, 2025 and ending on March 31, 2032.
Japan already has an R&D tax system to encourage investment in innovation, but while the R&D tax system is positioned as an input-stage tax system focusing on R&D investment, the Innovation Box tax system is positioned as an output-stage tax system focusing on the revenue from intellectual property such as patents and software that is the result of R&D.
▼Labor Management (Revision of Reporting Items for Report of Worker Casualties and Mandatory Electronic Filing) Effective January 1, 2025, the reporting items of the “Report of Worker Casualties” will be revised and electronic filing will become mandatory.
The 4 items that were previously open text – “Type of undertaking”, “Type of work of the victim”, “Name of injury/disease and part of injury/disease”, and “Nationality/region and Status of residence” will now be selected from the applicable codes, and the “Accident situation and cause” column will be divided into 5 sections to allow entry according to each point of attention.
As a transitional measure for the electronic filing, paper reports will still be accepted for the time being.
Source: Ministry of Health, Labor and Welfare “To Employers: Reporting Items for Report of Worker Casualties Will Be Revised and Electronic Filing Will Be Mandatory.”
For more details, please refer to Nagamine & Mishima JC Accounting K.K.
