This report summarizes the results of a survey project on the utilization status of special tax measures for SMEs related to business succession conducted by the Ministry of Economy, Trade and Industry in FY 2024.
Business succession of SMEs is an extremely important issue for Japan's sustainable economic development. As business owners age, various special tax measures including business succession tax systems have been established to support smooth business succession.
This survey conducted detailed analysis of the actual utilization status of special tax measures related to business succession, including business succession tax systems (corporate and individual versions), special provisions for small residential land, and the gift tax settlement system at inheritance. The characteristics, succession patterns, effects, and challenges of companies using these systems were verified from multiple angles.
Survey results confirmed that the number of business succession tax system certifications has been increasing annually, with utilization expanding significantly especially after the system revision in FY 2018. However, it was also revealed that some companies hesitate to use the system due to its complexity and strict requirements.
The survey results are expected to be utilized as important reference materials for further improvement of business succession support systems and consideration of dissemination promotion measures.