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Business Development Plan Program for Tax Saving and Financing

Here is an overview of Business Development Plan Program, that can provide you with variety of benefits such as Tax Benefits and Financial Support.

What is Business Development Plan Program?

Business Development Plan (経営力向上計画 Keiei-ryoku Kojo Keikaku) is a plan for business development, such as human resource development and cost management development as well as investment in equipment.  If you submit the plan to the competent authorities and they approve such a plan, you can obtain variety of benefits such as tax benefits and financial support in bank loans.  

You can apply for this program when you purchase equipment that falls under any of A through D.

A. Equipment that develops productivity

B. Equipment that develops profitability

C. Digitalization equipment for remote control, visualization or automatic control

D. Equipment to integrate business resources

Benefits of Business Development Plan Program 1 - Tax Benefits

  • Immediate depreciation or
  • 10% (or 7%) tax credit
  • The effect of immediate depreciation is tax deferral, but tax credit provides permanent tax saving

Benefits of Business Development Plan Program 2 - Financial Support

  • Additional loan facility
  • Reduced interest rate
  • Eligible for a cross-border loan for an overseas subsidiary

Benefits of Business Development Plan Program 3 - Extra Point for Government Grant

For example, a business development plan approved by the authority earns an extra point for Small Business Sales Expansion Grant Program (小規模事業者持続化補助金 shokibo jigyosha jizokuka hojokin) (as of January 2022).

Who is eligible for Business Development Plan Program?

  • Corporations and self-employed business owners (such as clinics) with employees of 2,000 or less.
  • Those whose number of employees exceeds 2,000 are still eligible if its capital stock is JPY 1 billion until March 31, 2023.
  • In order to obtain tax benefits, you need to satisfy additional conditions such as capital stock of JPY 100 million or less.

We assist you in preparation of Business Development Plan and application for the program.

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