Japan may offer corporate tax breaks to firms that digitise

Japan is considering offering tax incentives to companies that adopt digitalisation, public broadcaster NHK reported on Saturday.

The coronavirus pandemic highlighted a need for firms to digitalize to improve their productivity, which prompted the government to consider steps to support their business reforms by digital technology, it said.

Prime Minister Yoshihide Suga has made "digital transformation" in the nation a key pledge, aiming to streamline business and government processes and spur lacklustre growth in the world's third-biggest economy.

The government and the ruling Liberal Democratic Party (LDP) plan to discuss details of corporate tax breaks to be included in next fiscal year's tax revision, targeting mainly mid-sized companies to promote their digital investment, NHK said.