In this News, we will introduce the Tokyo Metropolitan Government (TMG)’s initiatives to regain its status as a leading global financial center.
Tokyo, the capital of Japan, is now the focus of global attention for anime, manga, and food culture. There are also many historical sites to visit. Tokyo attracts many visitors from all over the world, and the number of foreign visitors to the city hit a record high in 2023.
In this situation, TMG has been designated as a Special Zone for Financial and Asset Management Businesses and proactively continuing initiatives to improve its presence as a global financial city.
To become a gateway to attract global funds, talent, technology, and information, TMG is taking proactive measures based on the three pillars: “the leading city for sustainable finance,” “the city where global startups are born,” and “the city where the global standard for business in English.”
In detail, TMG is accelerating the following measures to bring benefits to foreign companies that will expand businesses into Tokyo.
① Request to abolish withholding tax on investment profits of foreign investors
Currently, in cases where a foreign investor invests in a fund in Japan (investment corporation, contractual-type investment trust, limited participants for investment, etc.), investment profits are subject to withholding at source.
Although there are tax exemptions under tax conventions or the Act on Special Measures concerning Taxation, the requirements and procedures for application are so complicated that it is difficult for foreign investors to use. Therefore, in order to facilitate more investment by foreign investors in Japan, TMG is requesting the national government to consider more appropriate measures such as eliminating withholding tax on dividends, etc. foreign investors receive from a fund created in Tokyo.
② Enhancing procedures in English at the time of founding
The Tokyo One-Stop Business Establishment Center (TOSBEC) is promoting to complete administrative procedures for establishment in English, including those for certification of articles of incorporation, employment insurance, labor insurance, health insurance, and employees’ pension insurance. This will reduce the burden of procedures when starting a business and facilitate the entry of foreign companies into Japan.
③ Promotion of information disclosure in English
As the Tokyo Stock Exchange requires all companies listed on the Prime Market to disclose key information in English, starting in 2025, TMG is offering companies an English-language disclosure support program.
Currently, the quality and availability of English IR disclosure by Japanese companies are not satisfactory, and this affects investment decisions of foreign investors. If more Japanese companies promote English-language disclosure, it will attract more overseas investment, and Tokyo can achieve the goal as a “major financial hub in Asia.”
In this News, we mentioned TMG’s initiatives to create Tokyo as an “Innovation and Financial Hub in Asia” toward realizing a sustainable society.
For information on TMG’s support programs for attracting foreign companies and expanding into Tokyo, please visit Our supports - Invest Tokyo - Tokyo Metropolitan Government As for overseas information dissemination and consultation desks, please visit Access to Tokyo - Invest Tokyo - Tokyo Metropolitan Government
■ About the Tokyo Metropolitan Government’s Initiatives
① Attracting foreign companies and supporting their expansion into Tokyo
② Overseas information dissemination and consultation desks: Access to Tokyo
③ Support for startups:Tokyo Innovation Base (TIB)
■ Proposal to the national government regarding the Tokyo Metropolitan Government’s “Special Zone for Financial and Asset Management Businesses”
If you have any questions about this article, please contact us below.
Strategic Projects Section, Strategy Promotion Division,
Office for Startup and Global Financial City Strategy
E-mail address: S1130103@section.metro.tokyo.jp
Query on the phone+81-3-6821-9455