To attract more foreign investments is one of Japan’s goals under the leadership of Prime Minister Abe. It has been known to many Japanese people that the country’s economy is trying to get back, so attracting foreign investors is one good strategy.
In relation to this, the Japanese government, particularly the Ministry of Economy, Trade and Industry (METI) has formulated a good plan to promote Japan as an Asian Business Center. This took effect in July of 2012.
To attract investors easily, the government is now offering several investment incentives that include reduction of fees and taxes. They are as follows:
1. Corporate tax breaks – With regards to the fees and taxes paid by corporations, the government decided to create a special measure by reducing the costs. In order to help corporations, there will be a 20% income deduction for a period of 5 years.
2. Income tax breaks – For income taxes, the treatment will be similar to enterprises in their taxation on stock options that benefit foreign enterprises or parent companies.
3. Fund raising assistance – Through this, fund raising efforts will become easier because of the assistance given by the Small and Medium Business Investment and Consultation Company, Ltd.
4. Faster results for patent examinations – This would mean faster processing in the patent examination results. Previously, it takes 22.2 months to complete it, but it has been reduced to 1.9 months.
5. Deduction in patent fees – This refers to the decrease of patent fees applicable to Small and Medium Enterprises (SME).
6. Easier investment procedures – Now, the timeframe of notification has been reduced from a month to 2 weeks under the Foreign Exchange and Foreign Trade Act.
7. Faster processing of Residency status – Foreign nationals, who want to work in Japan need to take an entrance examination to secure a Certificate of Eligibility for Status of Residence. Previously, the whole process takes a month, but it has been shorten to 10 days.
If all these actions will be fulfilled, it will surely bring great benefits not only to the Japanese government, but to foreign investors as well.