Supports for Foreign Companies

Tax Incentives

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: 10% of acquisition cost; Buildings: 5% of acquisition cost
  • Special Depreciation
    Machinery: 34% of acquisition cost; Buildings: 17% of acquisition cost
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.


  • 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 theBusiness Development Center Tokyo or Attraction of Foreign Companies, Strategic Projects Division, Office of the Governor for Policy Planning, Tokyo Metropolitan Government (E-mail:

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
[Metropolitan tax]
Outline of Exemption of Metropolitan Corporate Real Estate Acquisition Tax, Fixed Assets Tax, and City Planning Tax in the Special Zone for Asian Headquarters

National Strategic Special Zone

Companies directly engaged in a designated business in the NSSZ (companies receiving designation by the Minister of State for the National Strategic Special Zones) are eligible for a taxable income deduction of 20% if they fulfill certain conditions.

Reduction of effective corporation tax rate

Companies with capital of over 100 million yen
Current rate: 30.62%
After deduction of taxable income: 24.50%
Companies with capital up to 100 million yen and subject to a higher than standard tax rate
Current rate: 34.59%
After deduction of taxable income: 27.67%

Companies are also eligible to receive one of the following benefits if they purchase machinery, etc., within the special zone.

  1. Investment tax credit
    Buildings, etc.: 5% deduction; Machinery, etc.: 10% deduction
  2. Special depreciation
    Buildings, etc.: 17% deduction; Machinery, etc.: 34% deduction

Special provisions to the fixed asset tax and for national strategic private sector urban renewal projects can also apply to a company if it fulfills certain conditions.