Passersby walk at Shibuya Crossing in Tokyo, Japan July 8, 2025. REUTERS/Issei Kato

TOKYO, Dec 11 (Reuters) - Japan's government plans to introduce additional tax breaks to spur corporate investment, the Nikkei business daily reported on Thursday, even though the administration and ruling coalition have begun debate on how to cut government spending.

Tax breaks under consideration include either giving companies a tax credit of up to 7% of capital expenditure or allowing them to start accounting for depreciation on assets purchased immediately, the Nikkei reported, without citing sources.

The new incentives will fall under so-called special tax measures. The government has, however, set up a Japanese version of U.S. President Donald Trump's now-disbanded Department of Government Efficiency (DOGE) which is reviewing such measures.

The planned tax breaks are set to be included in a tax reform outline due to be published later this month. The industry ministry estimates a reduction of around 400 billion yen ($2.6 billion) in annual tax revenue due to the new measure, according to the Nikkei.

($1 = 155.6100 yen)

(Reporting by Makiko Yamazaki; Editing by Edwina Gibbs)