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30% of companies plan to implement pay raises, and 20% plan to implement capital investment.

-- The higher the awareness of reform, the higher is the motivation for pay raises and capital investment. -

Various countries have announced policies to support the improvement of corporate competitiveness through their tax systems, such as by lowering the corporate tax rate. For tax reform to promote work style reform and improve productivity, the government is considering a corporate tax system that may alleviate the burden on companies that have increased pay and investment in advanced technology, while considering a policy to review tax incentives for companies that have not been active in these respects. Under these circumstances, the ruling coalition officially announced their outline of the 2018 tax reform proposals on December 14, 2017.

Teikoku Databank has conducted a survey of corporate attitudes toward corporate tax reform. This survey was conducted in conjunction with the December 2017 TDB Trends Research.

*Survey period: December 18, 2017 - January 9, 2018; Companies Surveyed: 23,113; Valid Responses: 10,168 (Response Rate: 44.0%)

*Details of this survey can be found on the dedicated Economic Trend Survey HP. (

Survey Results (Summary)

1. With respect to the awareness of corporate tax reform, companies that "know about it, including the details" account for 4.9%. Combined with the 67.9% of companies that "know about the summary only," it is 72.8%, and over 70% of companies are at least aware of the outline of corporate tax reform.

2. In response to this corporate tax reform, 30.3% and 20.3% of companies responded "implement (including plan to implement)" pay raises and capital investment, respectively. Pay raises are expected in over 30% of companies with 6 to 100 employees, and capital investment is expected in over 20% of companies with 21-1000 employees. Although there is a difference in the intention to implement pay raises through capital funding, there is no such big difference in capital investment as in pay raises. However, the intention to implement differs according to awareness. In particular, 52.5% of companies whose capital funding is up to 100 million yen and that "know about it, including the details" plan to implement pay raises.

3. With respect to policies that companies would request of the government for corporate taxation system reform, the highest is "reduction in effective corporate tax rate" at 48.0%, followed by "reduction of corporate tax" (36.1%) in over 30%, "expansion of grants and subsidies" (28.2%), and "simplification of the tax system" (27.7%). On the other hand, "reduction in effective corporate tax rate," and "review of pro forma standard taxation" showed high percentages in large companies, and "reduction of corporate enterprise tax," "reduction of corporate inhabitant tax,” "reduction of corporate tax" and "review of fixed assets tax" showed high percentages in small to medium-sized companies.

4. With respect to contribution to the revitalization of the Japanese economy through this corporate tax reform, 28.6% of companies responded "contribute," and 26.2% responded "not contribute,” so opinions were almost polarized. However, up to almost half of companies, or 45.3%, responded "do not know,” and this suggests many companies cannot fully determine the effect on the entire Japanese economy.


1.Research Subjects(Companies Researched 23,113; Valid responses: 10,168 ; Response rate: 44.0%)

2.Research Items

*Business Confidence (current, in 3 months, in 6 months, in 1 year)

*Business Conditions (sales, purchasing and selling unit price, inventory, capacity utilization ratio, number of employees, overtime work hours)

3.Research Period and Methodology

Internet-based survey conducted December 18 2017– January 9 2017

The explanation of the Economic Diffusion Index

Research Purpose/Researched Terms

TDB Economic Trend Research (started from May 2002) is a monthly statistical survey conducted for over 20,000 nationwide corporations on their general business activities including the current condition and future outlook of the industry business performance and operating climate. The primary purpose of such a survey is to assess the current state of Japan’s economy.

Selection of the Subject Corporations

Companies of all sizes in all domestic industries are eligible to participate in the survey.

DI Formula The DI (Diffusion Index) is calculated by attaching a number (in parenthesis in the diagram below) to each of seven possible responses. Then multiplying the percentage of each response by the appropriate number, and adding the results.

A DI over 50 is in the range of “Good.” A score under 50 is “Bad.” The number 50 is the dividing point (“Neither Good or Bad”). All numbers are rounded off to the hundredth. It should be noted that no weight is given to a company’s responses based on its size. Calculations are made according to a “one company, one vote” rule.

For example, all corporations rated ‘Very Good’.


All corporations rated ‘Neither Good nor Bad’.


Size Classification

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