The draft outline for the revision of the tax system in 2020 under discussion by the Liberal Democratic Party and the Komeito Party of Japan has been exposed recently. It states that the fifth generation mobile communication system (5g) is positioned as an "information and communication infrastructure that constitutes the foundation of economic society and national life", and 5g is promoted as a national strategy.
Subsequently, Nokia Corp. said it had teamed up with five Japanese companies to provide next-generation 5g network services to enterprise customers.
Japanese media also said that Japan plans to start submitting a bill to Congress next year to promote domestic telecom companies to establish business relations with their counterparts in the United States and Europe.
At present, 5g has become the commanding point of national strategic competition and the key technology of future social development and informatization. Countries have accelerated the layout of 5g strategy and policy.
Akira Amari, chairman of the Tax Research Committee of Japan's ruling party, said, "globally, the competition for the rapid development of new telecommunications infrastructure is very fierce, and the Japanese government needs to go all out to speed up this process."
In order to reflect the importance of the Japanese government on the development of 5g technology, the scale of tax credit has been expanded in this new tax draft. For the mobile communication giants to build base stations earlier than originally planned, and the local 5g carried out by regional enterprises, 15% of the equipment investment will be deducted from the enterprise income tax and other projects based on national certification. If the enterprise is not willing to choose the 15% tax credit scheme, it can also choose the 30% dividend discount scheme.
The preferential policies of tax reduction and exemption have attracted many enterprises.
Nokia said it would establish ultra-high speed communication networks with Japanese partners, including computer systems company ns solutions Corp. and telecommunications equipment manufacturer Hitachi Kokusai electric Inc., mainly for manufacturers. The cooperation also involves Marubeni Corp., a trading company, Internet initiative Japan Inc., a communication company, and Equinix Inc., a data center operator.
In fact, as Japan lags far behind other countries in the development of 5g technology, the government has long intended to allow Japanese enterprises to cooperate with large overseas 5g enterprises, and will start accepting enterprises to apply for private 5g licenses later this month.
To move a rock and hit yourself in the foot
In addition, Japan plans to submit a bill to Congress next year to promote domestic telecom companies to establish business relations with their counterparts in the United States and Europe. Earlier, Japan banned the equipment of Chinese telecom equipment manufacturer Huawei on the grounds of national security.
Ironically, according to CNBC, Telefonica Deutschland, one of Germany's three major telecom operators, announced that it would take Huawei as a partner in building 5g.
Moreover, after disabling Huawei, Japan also began to bear the corresponding economic consequences.
According to a research report entitled "Huawei's contribution to Japan's economy" released by the Oxford Institute of economic research, a British think tank, in Tokyo, Japan, Huawei contributed 766 billion yen to Japan's GDP in 2018, creating tax revenue of 208 billion yen (about 13.46 billion yuan). In addition to economic value, Huawei has also directly or indirectly brought a large number of jobs in Japan, with a total of 46400. This means that after Huawei is banned in Japan, Japan will lose 208 billion yen in taxes and 46400 jobs.