🇯🇵🔬 Japan’s Special Tax Credit for R&D Expenses (試験研究費の特別控除)

In Japan, corporations can claim a special tax credit for R&D expenses (試験研究費の特別控除), in addition to deducting these costs as expenses.

After the 2026 tax reform (令和8年度税制改正), the regime now covers:
-Total R&D expenses (試験研究費・一般試験研究費)
-Special R&D expenses for open innovation (特別試験研究費)
-A new strategic technology area–type credit (戦略技術領域型) for AI, quantum, semiconductors, biotech, and other key fields.

📊 Credit Rates and Caps
The benefit depends on the credit rate and the cap tied to corporate tax liability.
-Total R&D expenses (試験研究費・一般試験研究費) use a variable rate, with the credit capped at a percentage of the tax due.
-Special R&D expenses (特別試験研究費) for collaborative or commissioned research enjoy higher rates, also within a separate cap.
-The strategic technology area–type credit (戦略技術領域型) offers even higher rates for priority technologies, subject to a fixed cap and possible carryforward of unused credits.

✅ Basic Eligibility (Simplified)
Blue‑return filer (青色申告) with properly recorded R&D expenses (試験研究費)
Correct choice and disclosure of the applicable scheme:
total R&D (試験研究費・一般試験研究費), special R&D (特別試験研究費), or strategic technology (戦略技術領域型)
Ability to document collaborative/commissioned research and targeted fields for 特別試験研究費 and 戦略技術領域型

🧑‍⚖️ Talk to a Specialist
Post‑reform, this is no longer a simple “tax saving” rule, but a strategic tool that interacts with global minimum taxation and cross‑border structures.

If you are planning significant R&D investment in Japan and want to understand how these credits (試験研究費の特別控除) can work for your organization, it is advisable to consult a tax professional experienced in Japanese R&D incentives and international taxation.