Japan Plans to Cut Taxes on Sale of Non-Core Businesses to Boost M&A

According to TechFlow, on August 25, citing Jinshi Data, sources revealed that the Japanese government is currently evaluating a tax incentive policy. Under this proposal, if enterprises sell their non-core businesses and reinvest the proceeds into acquisition activities, they will be eligible for tax relief.

The core objective of this policy adjustment is to guide listed companies in optimizing their asset structures. By monetizing idle or non-strategic assets and requiring the funds to be directed back into mergers and acquisitions, the government intends to stimulate market vitality, promote industry consolidation, and drive corporate expansion. Currently, the proposal remains under internal discussion, and detailed implementation guidelines have not yet been disclosed.