Consulting Services for Tax Incentives and Subsidies in Japan and Abroad

Consulting on Surveys of Tax Incentives and Subsidies in Japan and Abroad

Governments across the globe have implemented various tax incentives and subsidies (collectively, “incentives") to tackle challenges that cannot be addressed solely by private sector efforts. In recent years, Japan has implemented incentives in areas such as carbon neutrality, open innovation, research and development (R&D), digital transformation (DX), strategic sectors (including semiconductors, batteries, and electric vehicles), wage increases, and support for mid-sized enterprises. Similarly, foreign governments also offer a broad range of incentives in these areas.

For companies to effectively incorporate these incentives into their investment plans and maximize incentives, they first need to identify, comprehend, and prioritize these opportunities. However, the absence of centralized information and the varying availability and content of incentives across municipalities make it challenging for companies to fully understand their options independently.

In response to this, Deloitte's Gi3 teams worldwide collaborate to provide seamless support for companies in surveying and applying for these incentives, irrespective of their location or industry.

In Japan, should you decide to consult with a specialist, the law requires separate consultations with certified public tax accountants for tax incentives and administrative scriveners for subsidies. Our Gi3 team, comprising both tax accountants and administrative scriveners, can provide comprehensive, one-stop consultations for both tax incentives and subsidies.

Gi3 offers extensive consulting services on incentives to businesses of all sizes, from small and medium-sized companies to large corporations. Our services aim to enhance cash flow and return on investment, while concurrently contributing to the resolution of societal issues.

Consulting on the Application of Individual Incentives

Even when a company identifies eligible incentives, applying for and implementing them necessitates a profound understanding of the specific requirements stipulated in laws, regulations, and public offering guidelines. This involves ensuring all conditions are met and preparing the requisite application forms. Given the time-sensitive nature of these incentives, gaining timely information and inputs is crucial for many businesses. Moreover, engaging in negotiations with relevant ministries, agencies, and secretariats, as well as conducting post-implementation reporting, are often required. Many companies find it challenging to allocate additional resources while managing their existing operations, which can lead to them abandoning the application process. Even when resources are secured, a lack of knowledge and experience in successfully navigating the application process often results in companies giving up.

Considering the significant impact that incentives can have, it is crucial to ensure that all eligible applications are submitted.

Deloitte's Gi3 team continuously collects information on tax reform requests, proposals, governmental budgets, and proposed bills. With extensive experience in supporting the application and execution of various incentives, we are well-positioned to assist private companies while minimizing any additional burden.

Government Support for Incentives

Gi3 extends its support beyond private companies, also assisting governments by conducting surveys, research, and impact assessments of tax reforms and system changes.

In aiding governments, Gi3 collaborates with other businesses within the Deloitte Tohmatsu Group, such as audit, risk advisory, and consulting, to assemble the optimal team. This collaboration allows us to deliver valuable insights and measure the effectiveness of incentives.