Japan may introduce tax breaks to spur repatriation into yen: Sankei
Japan may introduce measures to provide tax breaks for companies converting foreign profits into the yen and include it in the government’s annual mid-year policy blueprint compiled in the summer, the Sankei newspaper reported.
The tax holiday may be deployed as a policy tool to stem the yen’s sharp declines, incentivising firms to return overseas assets to Japan, the newspaper reported on Tuesday (Apr 30).
A finance ministry official was not immediately available for comment on Wednesday.
The yen has slumped about 11 per cent against the dollar so far this year as currency traders bet Japanese interest rates will remain low for some time in contrast to relatively high US interest rates.
The tax break would be applied for about 20 trillion yen (S$173 billion) worth of “foreign direct investment earnings” from companies’ overseas subsidiaries, the Sankei reported.
Some government officials are skeptical, telling Reuters prior to the newspaper report that favourable tax treatment has already been in place and that additional measures are likely to have an impact. REUTERS
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
China’s first special bond sale likely to see solid demand
IMF knocks Biden’s China tariffs as risk to US, world growth
US SEC updates customer data hacking rules for Wall Street
Hong Kong’s shaky crypto ETF debuts dent global hub aspirations
US Fed officials suggest interest rates should stay high for longer
US import prices increase by the most in two years in April