Govʼt to back firmsʼ data-sharing through tax cuts

October 2, 2017

TOKYO- The industry ministry on Monday announced plans to introduce tax incentives for encouraging Japanese companies to share production and other data with rivals under its "connected industries" policy to help improve productivity and spur technological innovations.

The ministry announced specific measures for the new initiative on the day.

"Japanese companies compete too much on everything," industry minister Hiroshige Seko said.

Seko underscored the importance of domestic businesses cooperating as necessary, showing hopes to encourage them to join hands to respond to the latest developments in the global economy.

Specifically, the ministry plans to establish a system under which the government will certify businesses serving as intermediaries to collect data held by individual companies, including on machine tools and map information, and supply them to other firms.

Tax reductions may be considered if these businesses make investment in computer and other systems or take cybersecurity measures.

The ministry is in talks with the Finance Ministry and others on the tax relief scheme, hoping to include it in the government's tax system reform package for fiscal 2018, which starts in April next year. Jiji Press