In today's NHK news,
"3% of the investment is deducted from corporate taxes for companies that share data by cloud IT system."
"Additional 30% of company's investment to depreciation (for the first year only)(*1,*2,*3)"
I honestly couldn't believe my ears when I heard the news that. Because I'm not sure "DX = Cloud" is not correct.
But now I've reconsidered " that's good too"
Right now, the priority would be to go digital, rather than worrying about those details.
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The tax reform bill by the government and the ruling party is, with misleading saying
"Don't say a word, use AWS (Virtual Private Could) and build a collaborative system with two or more companies"
Just on the condition that the
"Tell the government what's in the system"
Well, it is natural.
"I'm well aware that DX is quite a difficult trial, if they are not a "company with a lot of engineers" like the one I work for.
I think the "digitization drive" with tax incentives is good.
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By the way, I'm doing a weekend study of system construction, in cloud computing, using AWS Lightsail.
Using the original AWS platform would be "EC2 + LBS + Route53 + domain cost = (personally) ridiculously high".
I would like to ask you to consider government subsidies for these "weekend cloud self-students", though,
Is it still too much to ask?
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(*1) Depreciation is a system to divide a large investment (payment) of a certain size into multiple years.
For example: a system of 10 billion yen worth of equipment is purchased each year for 200 million yen for 50 years.
The benefit of this program is that (A) companies do not incur a large deficit when they purchase equipment, and (B) 200 million yen is deducted from their profits each year, thus saving the taxpayer money.
(*2) I understand that the "extra 30%" means that the amount of normal depreciation will be larger -> make the profit look smaller -> lower taxes.
But if the annual depreciation disappears, the company should be in trouble.
If this is the case, it seems to me that the system allows for a virtual increase in the first year's depreciation and amortization, leaving the depreciation expense unchanged, which is a "de facto tax break".
(*3)This is the study of Ebata.