Special Zone for Asian Headquarters
Local subsidiaries of foreign companies that have been newly established as research and development center are eligible for national and metropolitan tax breaks if certain conditions are fulfilled.
Taxes Subject to Reduction or Exemption
Type: Comprehensive Special Zones Act *1
- National Tax (corporate tax)
-
- Investment Tax Credit
Machinery: ８% of acquisition cost; Buildings: ４% of acquisition cost - Special Depreciation
Machinery: 30% of acquisition cost; Buildings: 15% of acquisition cost
- Investment Tax Credit
- Metropolitan Tax
- Exemption of Real Estate Acquisition Tax (buildings), Fixed Assets Tax (buildings, depreciable assets), and City Planning Tax (buildings)
*1Income tax deduction and metropolitan corporate enterprise tax exemption based on the Comprehensive Special Zones Act will be applied after the national government has the items for deregulation positioned as part of the special zone project.
Important
- In order to receive national tax and metropolitan tax breaks, companies must first be recognized as eligible under the guidelines set forth by the Tokyo Metropolitan Government.
- In order to receive national tax breaks, companies may have to have their business plan approved by the relevant ministry or agency.
- Regarding conditions for company eligibility and preferential tax treatment, please inquire at the Business Development Center Tokyo.
Guidelines/Application Forms
- [National tax/ Metropolitan tax]
- Outline of Matters Concerning Certification as a Multinational Enterprise Engaging in Research and Development Business in the Special Zone for Asian Headquarters
- [National tax]
- Comprehensive Special Zone System Revisions