Investing in Japan
To facilitate investment in Japan, the government offers appealing incentives, as well as operating single contact points in relevant ministries and agencies for inquires/support regarding doing business in Japan.Local governments also offer various incentives and support exclusively for foreign-affiliated companies and foreign companies that are planning to open an office in their region.
The following shows incentives relevant to overseas/foreign-affiliated companies.
|Title||Overview||Eligible Costs||Subsidy Rates and Maximum Amount||Application Period||Organization in Charge|
|Subsidy Program for Global Innovation Centers||This subsidy program subsidizes the cost of companies from overseas for setting up innovation centers, experimental studies and feasibility studies (F/S) with respect to regenerative medicine or IoT in collaboration with Japanese companies and other organizations in Japan with the aim of drawing investments and excellent management resources from overseas by promoting location of high-value-added sections of overseas companies such as R&D facilities, and making Japan a high value-added hub and innovation base for global value chains.||
February 16, 2016 to September 9, 2016 (12:00 p.m. Japan Time)
Period for Acceptance of Application Forms: (first screening) March 10, 2016)
|Invest Japan Department, JETRO|
Tax incentives for companies that relocate their headquarters from the 23 wards in Tokyo to other regions, or that enhance and expand the function of their headquarters in those regions
|Enhancing/expanding headquarters of companies in local regions||Relocation from 23 wards in Tokyo|
|Target regions for support||Regions other than Tokyo Metropolitan Area, central Chubu region (Nagoya area) and central Kinki region (Osaka area)|
|Employment promotion taxation||
|Tax credit for office acquisition||15% for special depreciation or 4% for tax credit (for two years)||25% for special depreciation or 7% for tax credit (for two years)|
|Compensation for decreased local tax revenue||Partial compensation for decreased tax revenue of local governments through local tax grants when these governments take tax reduction measures related to property tax and real estate acquisition tax||Partial compensation for decreased tax revenue of local governments through local tax grants when these governments take tax reduction measures related to property tax, real estate acquisition tax and business tax|
FY2015 Japan Tax Reform(March,2015)(Please refer the page 8.)
Incentives regarding Special Zones
|Title||Overview||The Competent Authorities|
|National Strategic Special Zone (228KB)||Special regulatory measures, tax treatment (for corporate income tax), and financial/monetary support are available for companies with business plans in National Strategic Special Zones.||
Office forRegional Revitalization Promotion, Cabinet Office
|Comprehensive Special Zones (358KB)||Special regulatory measures, tax treatment (for corporate income tax), and financial/monetary support are available for companies with business plans in designated zones. CSZs have two types: those for international competitiveness and those for local revitalization. CSZs aim at providing tailored, integrated support for comprehensive and strategic challenges in selected regions.||
Office for Regional Revitalization Promotion, Cabinet Office
|Special Zones for Reconstruction (250KB)||Special measures such as deregulation, tax incentives, etc. are available for companies with business plans in disaster afflicted areas.||Reconstruction Agency|
Tax incentives based on Industrial Competitiveness Enhancement Act
|Title||Overview||Applicable Facilities||Tax incentives||Applicable Period||The Competent Authorities|
|Tax incentives to promote capital investment to improve production efficiency (394KB)||Tax incentives for corporations to promote capital investment in cutting-edge facilities to improve production efficiency||“Cutting-edge facilities” and “facilities contributing to improving production lines and operations”||
||Hotline for consultation regarding productivity improvement tax (METI) *Japanese only|
Tax credit for research and development (R&D) expenses
|Title||Overview||Note||The Competent Authorities|
R&D tax incentives (138KB)
|Tax incentives through which a certain rate of R&D expenses conducted by private companies as part of their business activities can be deducted from their corporate tax (national tax) of the relevant fiscal year. Four types of tax incentives are provided under “R&D tax system.”||
In the revision in 2015 (838KB) , the incentive was drastically enhanced to promote open innovation of companies
Innovation and Industry-University Collaboration Division, Industrial Science and Technology Policy and Environment Bureau, METI
Immigration Treatment Incentive
|Title||Overview||Note||The Competent Authorities|
Commentary by JETRO
|Under the points-based system, foreign professionals who earn 70 points or more will be recognized as "highly skilled foreign professionals" and will be given preferential immigration treatment.||
||Foreign Residents Information Center, Immigration Bureau, Ministry of Justice|
|Title||Subsidized Projects||Eligible Costs||
|The Competent Authorities|
Subsidy Program for New Business Establishment in the Areas Recovering from Tsunami and Nuclear Disaster towards Employment Creation [ Manufacturing business site location support project ] (Sixth Offering of Subsidy)
|A subsidy program for establishment of new factories (manufacturing), distribution facilities, research laboratories, call centers, data centers and others, so as to activate the regional economy through employment creation in the areas within prefectures inundated by the tsunami and Tohoku Earthquake and the areas in Fukushima prefecture affected by the nuclear power station accident and where the evacuation order has been lifted.||Initial expenditure for factory/facility location covering from acquisition of land to construction of buildings and installation of production equipment||
Rate of subsidy depends on the size of the enterprises making investment.
Subsidy up to 1/3 of the investment is offered for big businesses and up to 1/2 for SMEs.
[Maximum subsidy: 3 billion yen]
＊For projects which are planned in the municipalities devastated by tsunami and are particularly highly evaluated by the third party committee set up for this incentive, the upper limit shall be placed at 5 billion yen.
From May 9,
until noon on
July 29, 2016
Industrial facilities Division, Regional Economic and Industrial Policy Group, METI
Prefectural and Municipal Incentives
Prefectures and Municipals have their own unique incentives. You can search on Regional Information.
Introduction of in-depth profile of Japan's local regions, covering all 47 prefectures and 29 major cities: major industries including size, features and R&D facilities; business climate including infrastructure, incentives, government support, and more. More details
Incentives of local governments for foreign-affiliated companies
|Prefecture/city||Name of subsidies/incentives||Incentives of local governments for foreign-affiliated companies|
|Fukushima Pref.||Note: Japanese website only. English documents are available on the Japanese website.||Subsidizing portion of rent expenses, consultant commissioning fees, expenses required for incorporation (registration of corporation, acquisition of resident status, etc.) Eligible companies are those establishing facilities for manufacturing, R&D and/or sales in Fukushima Prefecture for the first time in the fields of pharmaceuticals, medical equipment, renewable energy and/or robotics (Subsidy rate of 3/4, with up to 28m yen per company)|
|Chiba Pref.||Office Lease Subsidies for Foreign-Affiliated Companies in Chiba Prefecture||Subsidizing portion of rent for offices or other facilities (1/3 of annual rent x 1 year, maximum 600,000 yen for companies with a number of employees between 1- 5 and 1.8m yen for more than 5)|
Note: Japanese website only
|Subsidizing portion of rent (1/2 of rent x 3 years, cumulative total limit of 3m yen), reduction of corporate inhabitant tax (municipal tax) (1/2 x 3 years)|
|Tokyo Metropolis||Special Zone for Asian Headquarters Subsidy||Subsidizing portion of expenses related to the establishment of a new Asian regional headquarters or R&D center (up to 1/2 of actual expenses paid to experts such as administrative scriveners and recruitment agencies, maximum 5m yen per company)|
|Kanagawa Pref.||Financing grant to promote new locations of foreign businesses||Subsidizing portion of rent for factories or research laboratories (1/3 of monthly rent x 6 months, maximum 3m yen)|
|Shizuoka Pref.||Office rent subsidy for foreign-affiliated or foreign companies||Subsidizing portion of office rent (1/2 of monthly rent x 1 year, maximum 500,000 yen in total)|
Note: Japanese website only
|Subsidizing portion of rent (1/2 x 3 years, maximum 3m yen [up to 1m yen per year for 3 years])|
Note: View the PDF file "the Support for Setting Up Your Business in Niigata"
|Subsidizing registration fees (maximum 150,000 yen per company) and rent (1/2 of monthly rent x 2 years, maximum 50,000 yen per month)|
|Aichi Pref.||GNI Business Start-up Support Program for foreign-affiliated companies||
Subsidizing expenses for incorporation and commencement of operations of foreign-affiliated companies in Greater Nagoya Area
(1. Expenses required for the establishment of corporations. 2. Expenses for recruitment advertising, brokerage cost paid to real-estate agents, market research, etc.). Maximum 500,000 yen each for #1 and #2 per company)
|Mie Pref.||Subsidy for foreign affiliated enterprises planning to establish an Asian base in Mie||Subsidizing 20% of depreciable assets invested by foreign-affiliated companies when establishing manufacturing bases (factories) (maximum 500m yen)|
|Osaka Pref.||Osaka Prefecture's Subsidies for Investment Promotion (Subsidy for Foreign-affiliated Companies) (222KB)||Subsidizing portion of investment of foreign-affiliated companies establishing new corporate headquarters or Asian regional headquarters in Osaka Prefecture (5% of investment on building and capital goods or 1/3 of office rent, with limitation depending on number of full-time employees)|
Note: Japanese website only
|Subsidizing expenses for registration (up to 100,000 yen per company) and acquisition of resident status (up to 50,000 yen per company)|
Note: Japanese website only. English brochure and leaflet are available on the website. "Best Portal Zone"
Subsidizing portion of office rent (up to 1/2 x 3 years, maximum 1,500 yen/square meter per month and 2m yen per year)
|Kobe City||Subsidy for Office Rent||Subsidizing portion of office rent (up to 1/2 x 3 years, maximum 1,500 yen/square meter per month and 2m yen per year)|
|Fukuoka Pref.||Subsidy for Visit to Fukuoka||Subsidizing portion of travel expenses by foreign-affiliated companies to or within Japan (eligible companies are those in fields of automobiles, IT, semiconductors, biotechnology, environment and robots, which are considering entry into Fukuoka Prefecture). 1. Travel from regions in Japan other than Fukuoka Prefecture: up to 100,000 yen per company 2. Travel from foreign countries other than Europe/America: 150,000 yen per company 3. Travel from Europe/America: up to 200,000 yen per company|
|Incentives to encourage establishment of its subsidiary in Japan||Subsidizing portion of registration fee (foreign-affiliated companies in fields of automobiles, IT, semiconductors, biotechnology, environment and robots; 1/2 of registration fee, maximum 150,000 yen)|
|Fukuoka City||Subsidies for Promoting Business Establishment (Business Targeting Asia)||
|Kumamoto Pref.||Subsidy for Business Setup for Foreign Affiliations in Kumamoto Prefecture||Subsidizing 5% of investment amount by foreign-affiliated companies in R&D or in manufacturing in 5 targeted fields (semiconductors, mobility, environment, food and life, social systems) (maximum 150m yen)|
Data source: Websites of local governments
* This list includes subsidies/incentives of local governments that are limited to foreign-affiliated companies or foreign companies. This list does NOT include subsidies/incentives that are applicable to both Japanese companies and foreign-affiliated companies. Please see websites of relevant local governments for details and the latest information.
Invest Japan Offices
The Japanese government sets up INVEST JAPAN offices in relevant ministries and agencies to serve as single contact points for foreign business people seeking information or help in setting up business in Japan. The offices are also located in the Ministry of Economy, Trade and Industry (METI), its regional bureaus and in the Department of Economy, Trade and Industry within the Okinawa General Bureau.