R&D Tax Credit

Helping any tax paying company invest in innovation

Introduced in 2000 the R&D Tax Credit is a dynamic and stable scheme for supporting R&D investment in Japan. Today presented in 2 incentives for in-house & collaboration R&D, it works toward a local and global Open Innovation spirit.

Who can benefit from the incentive?

• Any company that is paying tax this year
• Any incorporated company conducting innovation, regardless of its activity field
• If a company falls under the SME status, it gets a higher R&D Tax Credit Rate for in-house activities

What are the advantages?

A net tax credit up to 40% of corporate tax liability for large companies, and 60% for newly established R&D Ventures.

Eligibility expenditure

• Wage & Salary
• Joint R&D
• Consummables
• Depreciation of machinery
• IP acquisition

Calculation :

For in house expenses :

Up to 14% of eligible expenses can be deduced for Large companies, and 17% for SMEs.

For collaboration expenses :

Under the Open Innovation scheme, 30% of expenses for collaboration made with public entities and 20% for private entities can be deduced.