tax reform

Broadening of corporate tax breaks for executive compensation – linked with ROE

The Japanese government is investigating broadening of preferential tax treatment for compensation of company executives. Because the possibility of lowering of corporate taxation is limited to profit and fixed income earnings, the government is now also looking into compensation linked to return-on-investment (ROE) or return-on-assets (ROA).  The options for compensation of executives’ activities will be broadened, and this will (hopefully) push the improvement of profits and investment returns. 

 

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