Business succession options: family succession, employee buyout (MBO), or M&A. Special tax measures (2018-2027) defer 100% of gift/inheritance tax on transferred shares (Special Taxation Measures Act Art. 70-7+). Business Succession Facilitation Act provides reserved portion exceptions, financial support, and planning assistance. Non-listed stock valuation uses comparable company, net asset, or dividend methods. Plan 5-10 years ahead.
Business Succession in Japan: Family, M&A, and MBO Options
Key Takeaways
- ✓Business succession has three paths: family, employee, or M&A
- ✓Special tax deferral provisions may apply to gift and inheritance taxes
- ✓Ideally, 5-10 years of planning is recommended
- ✓Stock valuation methods significantly affect the tax burden
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