High Tax Rates May Dash Japan’s Hopes to Lure Hong Kong Business

Japan needs new incentives if it hopes to lure businesses leaving Hong Kong after the Chinese government imposed a national security law on the former colony, international tax analysts said.

The Japanese market watchdog, the Financial Services Agency, called Monday in a report for measures to make the country’s “financial and capital market more sophisticated and attractive.” It suggested increasing the use of English administrative services and cutting red tape. It also suggested “improving the business environment, including tax treatment.”

Prime Minister Shinzo Abe took office more than seven years ago promising to make Japan a more attractive destination for ...