print PRINT

ECONOMY

Gov’t to support regional efforts to lure foreign capital

  • July 30, 2018
  • , Nikkei , p. 2
  • JMH Translation

The government will draw up measures to invite foreign investment in regional cities in 2018. It will consider providing tax breaks to foreign-owned enterprises and subsidizing foreign companies setting up R&D centers for cutting-edge technologies.

 

The government will establish an “advisory committee on creating regional attractiveness (provisional name)” under the Council on Overcoming Population Decline and Vitalizing Local Economy as early as August to discuss criteria for selecting regional cities eligible for the support. It will also begin receiving applications from cities hoping for the support in autumn this year. Eligible cities will be ordinance-designated cities and core cities with a population of more than 200,000 which has authority pursuant to that of ordinance-designated cities.

 

The support measures will be centered on preferential treatments to invite foreign firms. The government will consider lowering corporate tax rates and providing low-interest loans from government-affiliated financial institutions. It will also come up with plans to offer subsidies and grants for R&D activities.

 

The government is also looking to dole out tax breaks for Japanese companies in a bid to spur the relocation of headquarters functions from Tokyo’s 23 wards to regional cities and capital investments by core companies in regional cities. (Abridged)

  • Ambassador
  • Ukraine
  • OPINION POLLS
  • COVID-19
  • Trending Japan