Deloitte Tohmatsu Strengthens Consulting Services for Foreign Companies Utilizing Japanese Incentives

This is an English translation of the news release issued by Deloitte Tohmatsu Group on September 27, 2024. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

27 September, 2024

Deloitte Tohmatsu Group (Chiyoda-ku, Tokyo; Group CEO: Kenichi Kimura; "Deloitte Tohmatsu", hereinafter) is strengthening its consulting services to help foreign companies effectively leverage Japanese grants and tax incentives (collectively, "incentives"). As part of this initiative, we have launched the "Japan Incentive Insights"^*1 website. Our website enables foreign companies to search for and consult on Japanese incentives in English. Through our integrated approach, we aim to streamline the process of identifying and utilizing Japanese incentives for foreign companies. This strategy is expected to increase inbound investment, thereby contributing to the revitalization of the Japanese economy.

■Background

In Japan, where the population is declining, increasing foreign direct investment (FDI) is critical for strengthening economic growth. Despite an increase in FDI, the ratio of Japan's inward FDI amount to GDP remains significantly lower than the OECD average, highlighting the urgent need to enhance locational competitiveness^*2. To address this issue, both the Japanese government and local municipalities have established support measures such as grants and tax incentives to encourage investment within Japan. However, information about these incentives is scattered across various websites, and the availability of information in English is limited. Consequently, foreign companies considering investment in Japan often encounter challenges in gathering the necessary incentive information and applying for these incentives.

■Strengthening Services

Deloitte Tohmatsu's Global Investment & Innovation Incentives (Gi3) team, comprised of Deloitte Tohmatsu Tax Co. and Deloitte Tohmatsu Immigration and License Co., offers specialized expertise in both domestic and international incentives. The Gi3 team has launched “Japan Incentive Insights” to support foreign companies in utilizing these incentives, addressing the challenges of fragmented information and limited English-language resources. Our website also facilitates consultations in English, thereby enhancing Deloitte Tohmatsu’s consulting capabilities for foreign companies looking to leverage Japanese incentives. Furthermore, in collaboration with other domestic tax teams and DT Legal Japan within Deloitte Tohmatsu Group, we provide comprehensive consulting services related to tax and legal matters for foreign companies entering the Japanese market to promote inbound investment.

■Features of Japan Incentive Insights

“Japan Incentive Insights” is designed to promote the utilization of major incentives in Japan, featuring the following key functions:

Incentive Search: Managed in accordance with the Certified Public Tax Accountant Act and the Certified Administrative Procedures Legal Specialist Act, Deloitte Tohmatsu Tax Co. handles tax incentives, while Deloitte Tohmatsu Immigration and License Co. oversees grants. Our website aggregates information on over 2,000 major incentives, searchable in both English and Japanese, enabling foreign companies to easily gather the necessary information for investing in Japan.
Articles: Our website features articles highlighting noteworthy incentives and providing useful information for investing in Japan.
Consultation with Experts: Users can directly consult with Deloitte Tohmatsu through our website when proceeding with the application process for selected incentives.

Japan Incentive Insights

■Utilization Scenarios

“Japan Incentive Insights” supports both English and Japanese, enabling the following use cases:

Headquarters of Foreign Companies: Search for incentives in English, switch to Japanese to obtain the exact Japanese names, and communicate efficiently with administrative offices or Japanese subsidiaries about the incentives.
Japanese Subsidiaries of Foreign Companies: Identify incentives in Japanese and provide the information to the overseas parent company without the need for translation.

Additionally, through our website, foreign companies can directly consult with Deloitte Tohmatsu about the incentive application process, facilitating a smooth transition from identification to consultation.^*3

Through “Japan Incentive Insights”, Deloitte Tohmatsu aims to strongly support foreign companies in leveraging Japanese incentives, thereby accelerating inbound investment and contributing to the development of the Japanese economy.

*1: “Japan Incentive Insights” is pending trademark registration

*2: "FY2022 Report on the Actual Situation of Japanese and Foreign Companies for the Promotion of Globalization" (Ministry of Economy, Trade and Industry) 

*3: Not all incentives are eligible for consulting services

Comment from Masaaki Miura, Partner at Deloitte Tohmatsu Tax Co. and Deloitte Tohmatsu Immigration and License Co.

"While Japan offers numerous incentives from both national and local governments, only a fraction of companies fully utilize them. However, leveraging these incentives is crucial for sustainable growth. By maximizing the use of incentives, companies can improve cash flow and enhance their return on investment to significantly boost their competitiveness.

Company growth is also connected to benefits for employees and contributions to local communities. “Japan Incentive Insights” serves as a powerful tool to achieve this. We are committed to support companies in maximizing the use of available incentives and achieving sustainable growth and development."

Deloitte Tohmatsu Group (Deloitte Japan) is a collective term that refers to Deloitte Tohmatsu LLC, which is the Member of Deloitte Asia Pacific Limited and of the Deloitte Network in Japan, and firms affiliated with Deloitte Tohmatsu LLC that include Deloitte Touche Tohmatsu LLC, Deloitte Tohmatsu Risk Advisory LLC, Deloitte Tohmatsu Consulting LLC, Deloitte Tohmatsu Financial Advisory LLC, Deloitte Tohmatsu Tax Co., DT Legal Japan, and Deloitte Tohmatsu Group LLC. Deloitte Tohmatsu Group is known as one of the largest professional services groups in Japan. Through the firms in the Group, Deloitte Tohmatsu Group provides audit & assurance, risk advisory, consulting, financial advisory, tax, legal and related services in accordance with applicable laws and regulations. With approximately 20,000 people in about 30 cities throughout Japan, Deloitte Tohmatsu Group serves a number of clients including multinational enterprises and major Japanese businesses. For more information, please visit the Group’s website at www.deloitte.com/jp/en.

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