Tax - News .com: Japan Mulls investment Incentives

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Japan mulls incentives to investment, by Mary Swire, tax - News .com, Hong Kong
Last updated 62 minutes ago |26 October 2010

The Japanese Government can introduce rates of preferential taxation for foreign companies investing in Japan, Nikkei Keizai newspaper reported.

Discussions on Japanese companies for all companies in 5% tax rate reduction has already progressed that extra incentives for investments may involve 10–15% reductions in the effective rate over the first five years.

Incentives would be attributed to high-tech, medical, biotechnology and similar technologically advanced wishing to establish a regional center for basic research and business development.

25-30% For the first five years effective corporate tax rate is intended to be competitive with China, Korea and other countries in the region of Asia .Aussi, additional concessions on local taxes could reduce the rate of effective tax paid by foreign investors.

Other issues have been reported include:

Concessions for mergers or acquisitions of businesses in the Japan;Office rental incentives or acquisition of land or buildings.Streamlining of visa processing; promoting more favourable conditions for foreigners coming to work at Japan; and procedures for fast-tracking in the process of approval of pharmaceutical products.

Proposals are have been sponsored by the Ministry of economy, trade and industry, but opposition to the Ministry of finance between autres.Panneau top-level Government, chaired by the Prime Minister would turn discussions in concrete proposals in the coming weeks for the implementation of the next year.

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