Inbound services: Japan business network (JBN)

Building bridges between businesses in Japan and the US

Japanese companies face a wide range of potential political, economic and financial issues when building subsidiaries in the US. Japanese-owned businesses have special needs that call for savvy professionals who are experienced in both Japanese and US compliance issues and business strategy. At PwC, we support the specialized needs of Japanese owned-companies, with services covering tax and financial planning, cost management, financial effectiveness and risk management, J-SOX, IFRS conversion, compliance, integration, transfer pricing, health and safety, and sustainability.

PwC's Japan Business Network assists companies expand their international footprint. If you’re thinking about investing — or already have invested — in the US or Japan, PwC’s Japan Business Network's team of bilingual professionals can help navigate the technical, regulatory, and cultural challenges facing your business today. 

Why invest in the US?

With a large consumer base, an educated workforce and an innovative environment, the US remains the leading destination of Japan’s outbound deals. It’s no surprise then that in 2017 Japan’s total global FDI flows to the US reached $469 billion — an increase of 12% from the previous year. Japan continues to invest heavily in the US, with the majority of investment concentrated in manufacturing, wholesale trade, finance and information services sectors. While the US remains an attractive market to Japanese investors, businesses should ensure they are extracting the most value out of their investment and deals as the trade and regulatory landscape undergoes significant changes in the US.

Why invest in Japan?

A leading economic power, Japan has the world’s third largest economy (by nominal GDP); a stable, innovative environment; and a highly skilled labor force. Japan's investment environment is improving due to government efforts. Investment opportunities in the vast, sophisticated Japanese market include automobile and automotive parts manufacturing, electronic equipment, machine tools, chemicals, textiles and processed foods. Japan has long been a face of national commitment to research and development (R&D); since 2000, Japan has ranked in the top three countries for total percentage of GDP devoted to research and development practices.

“Japan and the US share values and strategic interests, and attach importance to freedom, as well as the rule of law. On this basis, the two countries would preserve what shouldn't be changed, but deal with various issues dynamically and play a leading role in economic growth in the world."

Shinzō Abe | Japan Prime Minister

Our inbound and outbound business services

PwC's Japan Business Network advisors have extensive experience working in the US and Japan. As you consider entering the US or Japanese market, we'll help you calculate efforts and costs realistically and adapt approaches to local circumstances and needs. Our PwC Japan Business Network experts have the technical and cultural expertise to assist in our three main service areas: deals and consulting, cross-border tax services, and audit and assurance.

Deals and consulting

  • Market entry strategy and assessment
  • M&A due diligence, execution and integration
  • Valuation services (business combinations, fair value measurements)
  • Capital project management and delivery
  • HR strategy and shared services advisory
  • Corporate compliance, fraud and FCPA consulting
  • Supply chain and operations consulting
  • IT system strategy/development and IT support
  • Forensic services (investigation of fraud, economic crimes, and disputes)

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Tax services

  • Acquisitions and dispositions

Evaluate the US tax implications of US inbound acquisitions and disposition to help implement key initatives

  • Business and tax alignment

Align cross-border business and tax objectives

  • Compliance

Address compliance requirements with respect to US federal and state tax laws, and hot topic areas such as transfer pricing and FATCA

  • Income tax provision and uncertain tax position analysis
  • Individual income and payroll taxes
  • US income tax treaties and competent authority

Determine the applicability and desirability of obtaining the benefits of US tax treaties in the context of cross-border financing and investment, international mergers, acquisitions and dispositions

  • US tax benefits

Consider federal and state tax benefits, including credits and incentives available to US inbound companies

  • Legislative and regulatory services

Monitor real-time developments on fast-moving US federal and state legislative and regulatory developments

  • IRS audit support

Respond to IRS and state revenue services’ challenges, including proper characterization of US inbound financing as debt vs. equity

  • US trade

Navigating the US customs and tariffs regimes

 

Learn more about US inbound tax services

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Audit and assurance

  • Audit and assurance reviews
  • Audit on internal control over financial reporting (J-SOX)
  • Accounting and regulatory advisory
  • Internal controls assessments
  • Reporting standards conversion (GAAP/CAS/IFRS)
  • Cost reduction/efficiency improvement reviews

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Contact us

Michael Burak

Partner, US Inbound Services Leader, PwC US

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