Special Measures for Fixed-Asset Taxes Started


Special measures for fixed asset taxes were established in the 2023 tax reforms. The Q&A for the special measures have been released, and we will take a look at the details herein. In the event of an employee wage increase announcement, the fixed asset tax basis will be reduced to one-third of the original level for up to five years.

Reduced Fixed Asset Tax Basis

”Special measures for fixed-asset taxes on capital investments by small and medium-sized enterprises (SME’s) that contribute to productivity improvements and wage increases" were established in the 2023 tax reform. Eligible entities are corporations with capital of 100 million yen or less that have received approval for plans for the introduction of advanced equipment, etc. Subsidiaries of large corporations are not eligible, even if their capital is 100 million yen or less. As for sole proprietorships, they are eligible, as long as they have 1,000 or fewer employees.

If a small or medium-sized enterprise that has received approval of an introductory plan for advanced equipment, etc., meets certain requirements, its tax basis/base for fixed asset taxes on machinery and equipment, etc. that is subject to the plan will in principle be reduced by one-half for a period of three years.

Eligible equipment includes machinery and equipment, measuring tools, and inspection tools listed in their investment plans with a return on investment (ROI) of at least 5%.

Also, please note that the assets to be acquired must be new, and used assets are not eligible. The requirement is that the average annual return on investment is expected to be at least 5%. In this case, the average annual ROI is calculated by using operating income, the increase in depreciation, and the amount of capital investment.

Average annual return on investment (ROI) = Increase in (Operating income + Depreciation expense) / Capital expenditures

In addition, if a wage increase policy is set in the plan and announced to employees, the tax basis will be reduced by two-thirds for a maximum of five years.

No Cancellation for Non-Achievement

As mentioned above, under this special measure, if a company announces its wage increase policy to its employees and attaches a "document proving that it has announced the wage increase policy to its employees" when applying to the municipality about a plan to introduce advanced equipment, etc., the fixed asset tax basis will be reduced (for five years) to one-third of the original level for equipment acquired by March 31, 2024, and (for four years) for equipment acquired by March 31, 2025. Please note that a wage increase is defined as an increase of 1.5% or more in the total amount of salaries paid to employees.

In the published Q&A, the methods of announcing the wage increase method(s) are introduced. They include: e-mails to all employees; verbal explanation(s) at morning meetings; posting on company bulletin boards and/or internal portal sites; and notices distributed in writing.

Regarding a situation where a company announces a wage increase policy, but is unable to actually raise wages as announced, the Q&A states, "Since it is possible that economic conditions during the planning period may not necessarily allow wage increases as expected, this alone will not result in additional tax payments, etc." So even if a company is unable to actually raise wages as it stated, it will nevertheless receive a reduction in fixed asset taxes. In other words, even if the stated wage increase is not achieved, the fixed-asset tax will be reduced.

False Representations are not Acceptable

Please note that if your company files an application even though you have not announced a wage increase policy to your employees, you will not be eligible for the reduction. In such a situation, assuming that, ’Even if the company is unable to achieve a wage increase, it will still be eligible for a reduction’ is not valid.

Special Exception for the Collection of Admission Tickets, etc. with respect to Railroad Fares


In addition to receiving and keeping invoices, we are examining the keeping of books of account alone, as a special exception in order to apply the credit for taxable purchases of railroad fares. When railroad users deduct taxes on purchases related to railroad fares, can they apply the Special Exception for the Collection of Admission Tickets, Etc.?

What is the Special Exception for the Collection of Admission Tickets, Etc.?

Special exceptions - i.e., when keeping only books of account in which certain categories of information are recorded and preserved {without keeping invoices} are enough - include the "Special Exception for the Collection of Admission Tickets, Etc.," the "Special Exception for Public Transportation," and the "Special Exception for Business Trip Expenses," among others.

Regarding the Special Exception for the Collection of Admission Tickets, Etc., it applies to transactions in which admission tickets, etc. containing the informational items required for simplified invoices are collected when used.

Some people may mistakenly think that the Special Exception for the Collection of Admission Tickets, Etc. can be applied when tickets and express tickets are collected at ticket gates when using shinkansen (bullet trains), etc. However, the special exception is limited to cases where admission tickets, etc. which contain the information categories included in a simplified invoice are collected.

For shinkansen and other services operated by JR companies, the items on a simplified invoice are not printed on the train ticket or limited express ticket itself; instead, a receipt corresponding to a simplified invoice is issued at a ticket vending machine or a manned ticket counter.

Therefore, even if a ticket or an express ticket is collected at a ticket gate for a bullet train, etc., the Special Exception for the Collection of Admission Tickets, Etc. cannot be utilized, because the information on the simple invoice is not written on the ticket.

So please keep in mind that the Special Exception for the Collection of Admission Tickets, Etc. cannot be applied for the tickets for shinkansen or other trains, or limited express tickets, themselves.

Properly Understanding the Special Exception Allowing Bookkeeping (Entries) Only

As before, at least for railroad fares related to JR train tickets and limited express tickets, the Special Exception for Collection of Admission Tickets, Etc. does not apply. Therefore, in order to apply the special exception for/allowing preservation of only account books, either the Special Exception for Public Transportation or the Special Exception for Business Trip Expenses, Etc., should be considered.

In this regard, the public transportation exception cannot be applied when the amount of one transaction is 30,000 yen or more. In addition, it should be noted that the Special Exception for Business Trip Expenses, Etc. cannot be applied when transportation tickets are purchased using a corporate credit card; instead, the payments must be made in advance by the employee, etc. Depending on the situation, the carrying out of expense reimbursements corresponding to the deduction of taxes on purchases of rail fares should be considered.

The following table shows whether or not the special exception allowing just the keeping of account books related to railroad fares applies. As for the very complicated Special Exception for Business Trip Expenses, Etc., as stated above, if a corporate credit card is used or if the company directly purchases the tickets, etc., it would be marked below as “x” (invalid).

The Bank Loan Screening Process


When obtaining a loan from a bank, your company must undergo an examination. A Japanese bank's loan screening process is based on the ringi (approval) system*, but what is the flow of the process?

Let’s check the process by which a loan you have applied for is approved within the bank. Also, let’s look at cases where the final loan decision is made at the head office, rather than by a branch manager.

*the ringi (approval) system: the system in government offices and business corporations in which draft proposals are prepared by someone in charge of the matter and circulated for collective deliberation and final approval by particular (designated) officials or executives
{cf.稟議制度.html }

Loan Decision Flow, Starting from a Loan Application

In a bank, there are customer relations, loan, and deposit departments/sections. The customer relations section makes sales trips outside the bank and accepts loan applications. Loan officers carry out loan screening, and deposit officers accept deposits, withdrawals, and transfers at branch counters and also perform clerical work inside. The customer relations section and the loan section are involved in the loan review process.

First, the customer relations department accepts loan applications from companies. For companies that are not assigned a banker at the bank, the loan officer may accept loan applications. The bank employee who accepts the application generally writes the ringi request for approval of the loan.

In some cases, the branch manager or deputy manager directly accepts loan applications from companies that are considered important clients for the branch, but in such cases, an employee in the customer relations section or loan section is chosen to be in charge, and that person writes the approval request.

If the customer relations section employee in charge has written the request for approval, the request is passed around in the following order: the customer relations section manager, who is the supervisor of the employee in charge; the loan section employee in charge; and the loan section manager, respectively, who add their opinions and approval or disapproval of the loan to the 'request for approval' document.

If, on the other hand, the loan section employee in charge writes the request for approval, the request is not circulated to either the customer relations section employee in charge or the customer relations section manager. Once the request for approval has been circulated to the head of the loan section, it is circulated to the deputy manager, who is the number two person in the branch, and then to the branch manager.

The Opinions of Those to Whom the Request is Circulated Are for Reference Only

In this way, the circular for approval is circulated from lower-level employees to the top positions within the bank.

In some cases, the branch manager makes the final decision to approve or disapprove the loan, while in other cases, after approval by the branch manager, the request for approval is circulated to the department at headquarters that reviews loans (e.g., the examination department), which then makes the decision at headquarters. In certain cases, approval documents are circulated to the directors and bank president as well.

Even if all the people to whom the document was circulated during the approval process approve the loan, if the final decision maker rejects the loan, the loan will be rejected, and vice versa.

This means that the opinions of those who viewed the document partway through the process are only for the reference of the final decision maker, when making their decision.

Who is the Final Decision Maker?

The bank's bylaws determine whether the final decision maker is the branch manager, the head of the head office, or a board member. The bylaws have the following criteria, and if the criteria are exceeded, the decision will be made by the general manager of the head office, not the branch manager.

(1) Total amount of loans

This is not the amount of the current loan being decided upon, but rather the entire amount of loans made to that customer if the current loan were to be approved. The larger the total loan amount to one company, the greater the risk of default for the bank, so these decisions are made by head offices.

(2) Corporate credit rating

A company's credit rating is a rating that the bank assigns to each company based on factors that are not represented in the company's financial statements or numbers. The worse a company's credit rating is, the higher the risk of default, so such decisions are made by the general manager of the head office.

  • Russell Bedford

    locate a single person, or to identify an individual in context. Please read our privacy policy carefully to get a clear understanding of how we collect, use, protect or otherwise handle your Personally Identifiable Information in accordance with our website.

    What personal information do we collect from the people that visit our blog, website or app?

    When ordering or registering on our site, as appropriate, you may be asked to enter your name, email address, Address or other details to help you with your experience.

    When do we collect information?

    We collect information from you when you fill out a form or enter information on our site.

    How do we use your information?

    We may use the information we collect from you when you register, make a purchase, sign up for our newsletter, respond to a survey or marketing communication, surf the website, or use certain other site features in the following ways:

    • To follow up with them after correspondence (live chat, email or phone inquiries)

    How do we protect your information?

    We do not use vulnerability scanning and/or scanning to PCI standards.
    We only provide articles and information. We never ask for credit card numbers.
    We do not use Malware Scanning.

    We do not use an SSL certificate
    • We only provide articles and information. We never ask for personal or private information like names, email addresses, or credit card numbers.

    Do we use 'cookies'?

    Yes. Cookies are small files that a site or its service provider transfers to your computer's hard drive through your Web browser (if you allow) that enables the site's or service provider's systems to recognize your browser and capture and remember certain information. For instance, we use cookies to help us remember and process the items in your shopping cart. They are also used to help us understand your preferences based on previous or current site activity, which enables us to provide you with improved services. We also use cookies to help us compile aggregate data about site traffic and site interaction so that we can offer better site experiences and tools in the future.

    We use cookies to:
    • Keep track of advertisements.
    • Compile aggregate data about site traffic and site interactions in order to offer better site experiences and tools in the future. We may also use trusted third-party services that track this information on our behalf.

    You can choose to have your computer warn you each time a cookie is being sent, or you can choose to turn off all cookies. You do this through your browser settings. Since browser is a little different, look at your browser's Help Menu to learn the correct way to modify your cookies.

    If you turn cookies off, some features will be disabled. It won't affect the user's experience that make your site experience more efficient and may not function properly.
    However, you will still be able to place orders.

    Third-party disclosure

    We do not sell, trade, or otherwise transfer to outside parties your Personally Identifiable Information unless we provide users with advance notice. This does not include website hosting partners and other parties who assist us in operating our website, conducting our business, or serving our users, so long as those parties agree to keep this information confidential. We may also release information when it's release is appropriate to comply with the law, enforce our site policies, or protect ours or others' rights, property or safety.

    However, non-personally identifiable visitor information may be provided to other parties for marketing, advertising, or other uses.

    Third-party links

    Occasionally, at our discretion, we may include or offer third-party products or services on our website. These third-party sites have separate and independent privacy policies. We therefore have no responsibility or liability for the content and activities of these linked sites. Nonetheless, we seek to protect the integrity of our site and welcome any feedback about these sites.


    Google's advertising requirements can be summed up by Google's Advertising Principles. They are put in place to provide a positive experience for users.

    We use Google AdSense Advertising on our website.

    Google, as a third-party vendor, uses cookies to serve ads on our site. Google's use of the DART cookie enables it to serve ads to our users based on previous visits to our site and other sites on the Internet. Users may opt-out of the use of the DART cookie by visiting the Google Ad and Content Network privacy policy.

    We have implemented the following:
    • Remarketing with Google AdSense

    We, along with third-party vendors such as Google use first-party cookies (such as the Google Analytics cookies) and third-party cookies (such as the DoubleClick cookie) or other third-party identifiers together to compile data regarding user interactions with ad impressions and other ad service functions as they relate to our website.

    Opting out:

    Users can set preferences for how Google advertises to you using the Google Ad Settings page. Alternatively, you can opt out by visiting the Network Advertising Initiative Opt Out page or by using the Google Analytics Opt Out Browser add on.

    California Online Privacy Protection Act

    CalOPPA is the first state law in the nation to require commercial websites and online services to post a privacy policy. The law's reach stretches well beyond California to require any person or company in the United States (and conceivably the world) that operates websites collecting Personally Identifiable Information from California consumers to post a conspicuous privacy policy on its website stating exactly the information being collected and those individuals or companies with whom it is being shared. - See more at:

    According to CalOPPA, we agree to the following:
    Users can visit our site anonymously.
    Once this privacy policy is created, we will add a link to it on our home page or as a minimum, on the first significant page after entering our website.
    Our Privacy Policy link includes the word 'Privacy' and can be easily be found on the page specified above.

    You will be notified of any Privacy Policy changes:
    • On our Privacy Policy Page
    Can change your personal information:
    • By emailing us

    How does our site handle Do Not Track signals?

    We honor Do Not Track signals and Do Not Track, plant cookies, or use advertising when a Do Not Track (DNT) browser mechanism is in place.

    Does our site allow third-party behavioral tracking?

    It's also important to note that we allow third-party behavioral tracking

    COPPA (Children Online Privacy Protection Act)

    When it comes to the collection of personal information from children under the age of 13 years old, the Children's Online Privacy Protection Act (COPPA) puts parents in control. The Federal Trade Commission, United States' consumer protection agency, enforces the COPPA Rule, which spells out what operators of websites and online services must do to protect children's privacy and safety online.

    We do not specifically market to children under the age of 13 years old.

    Fair Information Practices

    The Fair Information Practices Principles form the backbone of privacy law in the United States and the concepts they include have played a significant role in the development of data protection laws around the globe. Understanding the Fair Information Practice Principles and how they should be implemented is critical to comply with the various privacy laws that protect personal information.

    In order to be in line with Fair Information Practices we will take the following responsive action, should a data breach occur:
    We will notify the users via in-site notification
    • Within 7 business days

    We also agree to the Individual Redress Principle which requires that individuals have the right to legally pursue enforceable rights against data collectors and processors who fail to adhere to the law. This principle requires not only that individuals have enforceable rights against data users, but also that individuals have recourse to courts or government agencies to investigate and/or prosecute non-compliance by data processors.

    CAN SPAM Act

    The CAN-SPAM Act is a law that sets the rules for commercial email, establishes requirements for commercial messages, gives recipients the right to have emails stopped from being sent to them, and spells out tough penalties for violations.

    We collect your email address in order to:
    • Send information, respond to inquiries, and/or other requests or questions

    To be in accordance with CANSPAM, we agree to the following:
    • Not use false or misleading subjects or email addresses.
    • Identify the message as an advertisement in some reasonable way.
    • Include the physical address of our business or site headquarters.
    • Monitor third-party email marketing services for compliance, if one is used.
    • Honor opt-out/unsubscribe requests quickly.
    • Allow users to unsubscribe by using the link at the bottom of each email.

    If at any time you would like to unsubscribe from receiving future emails, you can email us at
    info★ (replace ★ with at-mark) and we will promptly remove you from ALL correspondence.

    Contacting Us

Copyright© SHINSEI INTERNATIONAL TAX CO. All Rights Reserved.