The Tokyo Metropolitan Government (TMG) has awarded Accenture (NYSE:ACN) a second, one-year contract, through March 2015, to continue attracting foreign companies to locate their regional headquarters or research and development (R&D) centers in Tokyo's Special Zone for Asian Headquarters.
Accenture exceeded its original FY13 objective of recruiting 10 foreign firms, which represent a diverse range of industries, including environmental, medical, entertainment as well as information, communications and technology (ICT) companies. The TMG has a goal of attracting 50 regional headquarters or R&D centers to the Special Zone by the end of 2016.
The “Special Zone” includes areas designated by the national government that are designed to increase foreign investment by offering companies that locate there preferential tax treatment, a more deregulated business environment as well as fiscal and financial assistance. The zone includes areas located around the Shinjuku, Shibuya, Shinagawa and Tamachi stations, Central Tokyo and the waterfront, as well as the area around the Haneda airport.
Accenture will continue its outreach to new, prospective company targets to further enhance Tokyo’s international competitiveness by marketing the city’s attractiveness for foreign investment.“We are honored to continue working on a program that is critically important, not only to Tokyo, but to Japan’s global competitive positioning as well,” said Hiroshi Goto, who leads Accenture’s Health & Public Service business in Japan. “We will do our best to recruit foreign companies, based on the experience and knowledge we’ve gained during the first year of this project.” Companies that locate in the Special Zone are eligible for the following benefits:
- Consulting services: Accenture will provide management consulting services to foreign companies, from initial consideration of entry or expansion into the Japanese market until they make their final decision to locate their Asian regional headquarters or R&D centers in the Special Zone. These services will include the formulation of growth strategies, market research and analysis and the identification of prospective business partners.
- Business Development Center TOKYO: The government has created a bilingual center designed to support business activities, including general business consulting services, and also provides assistance to employees relocating to Tokyo – helping them build their lives in a new city. The TMG has commissioned Medical Associa to provide these services.
- Subsidy programs: Subsidies through the TMG will be provided for up to 50 percent of “Status of Residence” costs, including recruiting costs, the cost of establishing offices in Tokyo and various notification costs when locating Asian regional headquarters or R&D centers in the Special Zone.
- Preferential Tax Treatment: If newly established Japanese corporations locate their Asian regional headquarters or R&D centers in Tokyo, and satisfy certain requirements, they will be eligible to receive either a reduced effective corporate tax rate, competitive with other Asian cities, or special depreciation rates (50 percent of machinery acquisition costs, 25 percent of building acquisition costs) or an investment tax credit (15 percent of machinery acquisition costs, 8 percent of building acquisition costs).