Browse > Home / Business / Taxation, immigration changes to lure foreign firms to Japan?

Taxation, immigration changes to lure foreign firms to Japan?

April 22, 2010
By Ken Worsley


A major Japanese newspaper (which we may not link to) is reporting that the Japanese government is considering tax breaks and simplified immigration procedures in an attempt to boost foreign investment in Japan (By the way, if you would allow us to link to your website, you would have thousands of potential new subscribers).

According to the article (which we cannot link to due to threat of legal action):

The Ministry of Economy, Trade and Industry is proposing that foreign firms’ corporate and income taxes be reduced for a limited time based on such factors as the size of their investments and the number of jobs they create. It is also working with relevant ministries to make it easier for engineers and other skilled foreign workers to enter the country.

Direct foreign investment contributed 3.6% to Japan’s GDP in last year, compared to 15.8% for the U.S., 46.5% for the U.K. and 10.5% for South Korea. While the DPJ hopes to boost Japan’s direct foreign investment to 10% of GDP, it faces many challenges, including the fact that Japan’s business environment does not make things easy for foreign firms.

The paper’s article (which we cannot link to) makes it clear that many major global firms have abandoned Japan in recent years. As an example, Proctor & Gamble and Nokia have both moved their Asian operations from Japan to Singapore.

METI intends for their recommendations to be ready in June, a delay which means they fear complaints from domestic firms that don’t want to see tax breaks for foreign firms moving into Japan.

As someone who has lived a decade in Japan and seen “entertainer” visas issued with ease, I have to wonder what would possibly prevent relaxing visa standards for engineers and highly qualified managers, let alone foreign capital. Here’s hoping Japan can get its priorities straight.

It’s the economy, baka.

Filed Under Business 

Social Bookmarks:
del.icio.us:Taxation, immigration changes to lure foreign firms to Japan? digg:Taxation, immigration changes to lure foreign firms to Japan? newsvine:Taxation, immigration changes to lure foreign firms to Japan? furl:Taxation, immigration changes to lure foreign firms to Japan? reddit:Taxation, immigration changes to lure foreign firms to Japan?
Related Posts:
More on Foreign Workers in Japan: What is Keidanren After?
Foreign Minister: Japanese ability might be necessary for work visas in future
Have we found Dejima (the new district for foreign workers in Tokyo)?
Foreign Students Staying on to Work in Japan Hits Record High: Ministry of Justice
Bank of Japan Governor Fukui calls for further discussion on immigration

Comments

3 Responses to “Taxation, immigration changes to lure foreign firms to Japan?”

  1. Phil on April 22nd, 2010 7:02 pm

    Is it hard to get an Engineer visa? I got one, didn’t seem to hard, however I’ve also got an engineering degree, that was a little harder to get :-)

    Getting a job to sponsor a visa was the hard part for the visa, and i don’t think you would really want the visa without the job to go with it. It has always seemed to me the limit on the issuing of engineer visas for Japan was demand by employers, rather than government protections such as the H1B quota in the US.

  2. David H. on April 22nd, 2010 7:19 pm

    I won’t hold my breath.

    Gee, I wonder what newspaper that is? Shame I can’t get a link to it. Sounds like a pare with interesting articles, but I can’t tell. Maybe they’ll copy this idea and open up to boost subscribers?

  3. David H. on April 22nd, 2010 7:20 pm

    I meant “paper/site with interesting articles.”

Got something to say?