The establishment of so-called inclined taxation system in 1951, supported by the Firm
Rationalization Promotion Law in 1952, also had a substantial impact. This system
provided generous corporate tax exemption arrangements in purchasing specific types
of machinery and equipment, and accelerated the introduction of foreign technologies
and investment on imported machinery and equipment. For a long time, due to the war
Japanese firms had no access to new technology developed abroad, and it was thus
extremely important to enable these firms to obtain technology transfers in order to
bridge the gap. In this regard, the system worked well.
The establishment of so-called inclined taxation system in 1951, supported by the FirmRationalization Promotion Law in 1952, also had a substantial impact. This systemprovided generous corporate tax exemption arrangements in purchasing specific typesof machinery and equipment, and accelerated the introduction of foreign technologiesand investment on imported machinery and equipment. For a long time, due to the warJapanese firms had no access to new technology developed abroad, and it was thusextremely important to enable these firms to obtain technology transfers in order tobridge the gap. In this regard, the system worked well.
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