Tax Incentives & Grants - Japan

Japan has taken significant strides to position itself as a competitive destination for international film and television productions. The recent introduction of a robust incentive program underscores the country's commitment to attracting large-scale projects and fostering collaborations between Japanese and international filmmakers.

Japan’s 50% cash rebate program, coupled with its cultural richness, diverse locations, and advanced infrastructure, makes it an increasingly attractive destination for international filmmakers. With government support, an emphasis on large-scale productions, and a strategic focus on global collaborations, Japan is poised to become a major hub for the global film industry. For filmmakers seeking both financial benefits and artistic inspiration, Japan offers a compelling opportunity.

Below is an overview of Japan's offerings:

  • Japan's flagship incentive program provides a generous cash rebate designed to attract high-budget international productions.

    Key Features

    • Cash Rebate Rate:

      • Up to 50% of qualifying production expenditures incurred in Japan.

      • Maximum rebate amount: JPY 1 billion (~USD 6.8 million).

    • Eligible Expenses:

      • Direct production costs incurred within Japan, including:

        • Location fees.

        • Salaries and wages for local crew and talent.

        • Set construction and design costs.

        • Equipment rentals and transportation expenses.

    Eligibility Criteria

    • Minimum Spend:

      • Total production costs in Japan must meet one of the following:

        • JPY 500 million (~USD 3.3 million) in direct production costs within Japan.

        • Total global production budget exceeding JPY 1 billion (~USD 6.8 million), with at least JPY 200 million (~USD 1.3 million) spent in Japan.

      • Productions planned for international release, screening, broadcast, or distribution in 10 or more countries must spend at least JPY 200 million in Japan.

    • Japanese Production Partner:

      • The application must be submitted by a Japanese production company or legal entity established under Japanese law.

      • Foreign production companies are required to partner with a local production company to access the incentive.

    Application Process

    1. Submission:

      • Applications must be submitted to the Visual Industry Promotion Organization (VIPO) before the start of production activities in Japan.

      • Applications are reviewed in rounds; for example, the third round in 2024 ran from August 26 to September 13.

    2. Approval:

      • Projects are evaluated based on eligibility criteria, cultural relevance, and economic impact.

      • Grants are allocated on a first-come, first-served basis until the annual budget is exhausted.

    3. Disbursement:

      • The rebate is provided after a thorough audit of the project's expenses and compliance with program guidelines.

  • Program Launch and Impact

    • Launch:

      • The incentive program was officially launched in 2023, replacing an earlier initiative that offered rebates of up to 20%.

      • The upgraded program with a 50% rebate aims to make Japan more competitive globally.

    • Attracted Productions:

      • High-profile international projects have already benefited from the program, including:

        • "Rental Family" (U.S. theatrical release).

        • "YOROI" (French theatrical release).

        • "Monarch: Legacy of Monsters Season 2" (U.S. streaming series).

      • The program has positioned Japan as a key player in the global audiovisual production market.

    Increased Budget Allocation:

    • The Japanese government has allocated a significant budget for this incentive, ensuring the program remains accessible to large-scale productions.

  • Application Tips for International Filmmakers

    • Engage Early:

      • Partner with a Japanese production company early in the planning stages to streamline the application process.

    • Budget for Compliance:

      • Ensure your project meets the minimum expenditure requirements and cultural eligibility criteria.

    • Leverage Local Expertise:

      • Utilize local talent and resources to enhance authenticity and maximize eligible expenses.