EXCLUSIVE: Japan Mulling Tax Break to Promote Use of Unclaimed Land

August 27, 2018

Tokyo-Japan's land ministry has started considering a tax break plan aimed at promoting the use of unclaimed land, Jiji Press learned Monday.

Under a law enacted this year, private companies and nonprofit organizations are allowed to use land with uncertain ownership for up to 10 years for public purposes, upon approval by prefectural governors. The ministry is considering giving a tax break to owners who sell adjacent land to such entities, informed sources said.

The ministry expects the tax break to make it easier for companies and NPOs to secure and develop land plots as event venues or farm stalls, for example.

The expected measure will be part of the government's tax system reform request for fiscal 2019, which starts in April next year, the sources said.

The law, to help revitalize unclaimed and unused land, also allows the use of unclaimed land and adjacent plots whose owners are known for single projects.

The ministry is considering a special tax deduction worth 15 million yen to companies and individuals when they sell land adjacent to unclaimed plots to private companies and NPOs, the sources said. Jiji Press