METI Requests a Review of the Acquisition-Price Thresholds (JPY 100,000 / 200,000) for Depreciable Assets (Not Yet Decided)Asking to Rethink the JPY 100,000 / 200,000 Lines for Buying Equipment (Not Decided Yet)
For the FY2027 (Reiwa 9) tax reform, the Ministry of Economy, Trade and Industry (METI) has requested a review of the threshold amounts used when acquiring depreciable assets. Currently, assets under JPY 100,000 can be fully deducted when acquired, and assets of JPY 100,000 to under JPY 200,000 can be deducted in equal installments over 3 years. The request is to review thresholds left unchanged for many years in light of rising prices.
Key points
- Current system: assets under JPY 100,000 are fully deductible at acquisition; assets of JPY 100,000 to under JPY 200,000 can be deducted in equal installments over 3 years
- The scope of local-tax depreciable assets (subject to fixed asset tax) is also defined by excluding assets that are wholly or partly deductible under these rules
- Requested: a review of the threshold amounts in light of recent price increases
- The stated reasons are reducing the administrative burden on businesses by reviewing thresholds unchanged for many years, and the Cabinet decision of July 21, 2026 (Reiwa 8) calling for a check and review of thresholds in the budget and tax systems
What to do in practice
- Until new thresholds are decided, keep handling assets under the current JPY 100,000 / 200,000 thresholds
- Check how the amounts are shown in the coming tax reform outline
When a company buys equipment, the rules change depending on the price. For example, under JPY 100,000 can be counted as an expense in the year it is bought. METI has asked to rethink these price lines because prices have risen. Nothing has been decided yet.
- Price paid
- JPY 150,000
- Per year, spread over 3 years
- JPY 50,000
- Total expense over 3 years
- JPY 150,000
Points
- Not decided yet. It is only a request from the ministry
- Right now, items under JPY 100,000 can be counted fully as an expense in the year of purchase
- Items from JPY 100,000 up to under JPY 200,000 can be spread over 3 years
What the words mean
- Expense
- Money taken off sales to make the profit that is taxed smaller
- Threshold
- A price line used to split how things are handled
- Ministry of Economy, Trade and Industry (METI): Ministry of Internal Affairs and Communications: FY2027 (Reiwa 9) local tax reform request (METI), review of acquisition price thresholds for depreciable assets (PDF)
- Ministry of Economy, Trade and Industry (METI): Ministry of Internal Affairs and Communications: list of FY2027 (Reiwa 9) tax reform requests (METI)
This article previews items that are still under consideration or only requested. Whether they will be adopted, and whether the content or timing will change, is not final. Please check the official source again once a decision is made.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.