National Strategy Special districts more fiscally attractive for businesses

The Japanese Finance Ministry (MOFA) and the Cabinet Office (CAO) announced plans to give companies located in National Strategy Special districts (kokka senryaku tokku)  a 20% tax exemption on their corporate income.  The exemption is limited to newly established companies (within the last five years) designated by the country and those active in the district in areas such as agriculture and medical health.  The plan would be an addition to the accelerated decrease in corporate taxes announced earlier this month.

National Strategy Special districts were established last year and are part of the Abe government economic strategy, and allow the districts to operate with more relaxed regulations in order to attract (foreign) businesses. Thus far, Tokyo, Osaka, Okinawa, Fukuoka and Niigata have been selected as special districts, each with their own focal point. 

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