Fukui. Tax cuts. Financing program
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1 Fukui Reduction or exemption of business tax, real estate acquisition tax, fixed asset tax, etc. on businesses in applicable areas for 3 years. Financing to promote establishment of corporate sites Low-interest loans for businesses to encourage companies to locate in the prefecture and hire local residents (Rate: 1.5% a year (fixed rate), limit: 500 million ( 1 billion if specially approved), duration: 15 years max.) Business start-up subsidy (financial aid for facilities) Subsidies for equipment acquired for high-tech,health-and-longevity or food businesses (maximum of 3 billion). Subsidies for facility acquisition and new hiring for HQ function (including test research) (maximum of 600 million) Business start-up subsidy (financial aid for business activity costs) Subsidies for the business expenses of high-tech or health-and-longevity businesses (Maximum of 100 million per year for 3 years) Business start-up subsidies (financial aid for R&D) Subsidies for the research and development expenses of businesses that plan to establish or expand research facilities in applicable areas (Subsidize 50% of total cost; maximum of 100 million/year and an overall total of 500 million) 27
2 Shiga Reduction or exemption of business tax, real estate acquisition tax, etc. on businesses in applicable areas for 3 years. Low-interest loans for the equipment for plants or research institutes. (Annual interest rate: 1.25%; limit: 200 million (land acquisition: 100 million); duration: 10 years max (including an up-to-two-year period of deferment)) Subsidies for the establishment of headquarters, research and development facilities and mother factories of growth industries (up to 1 billion) Subsidies supporting electric power costs in the establishment or expansion of facilities in applicable areas near nuclear power stations. 28
3 Kyoto Reducing real estate acquisition tax by 50% at maximum, if a factory or the like is built or expanded in an integration promotion area for manufacturing and other industries Low-interest loans for necessary funds for building or expanding a factory or the like applicable to the Special Business Subsidy under Kyoto Industrial Site Strategy 21 (Annual interest rate (fixed during the first 10 years): 1.7%; special rate: 1.2%; upper limit: 2 billion; duration: up to 20 years for equipment fund, and up to 7 years for operating fund) Special Business Subsidies under Kyoto Industrial Site Strategy 21 Subsidizing companies that build or expand a factory or the like in Kyoto Prefecture, to compensate their labor costs for regular employees within the prefecture and their investments in fixed assets Subsidies for supporting businesses located near nuclear power plants, etc. Subsidizing companies that build or expand a factory or the like in applicable areas, to compensate their electricity charges resulting from their electricity contracts. Subsidies for developing Kyoto-type top global niche companies: Subsidizing target companies, including companies ranked A by the Kyoto City venture business committee, which build or expand business locations, to compensate the fixed asset tax and city planning tax for five years, and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts Kyoto City Subsidies for promoting the establishment of corporate facilities in Kyoto City: Subsidizing companies that build or expand their head offices, factories, research institutes, and R&D centers in the city, to compensate the fixed asset tax and city planning tax on the newly acquired assets (for five years for SMEs and for two years for large enterprises with a one-year extension for all enterprises located in specified areas, such as Rakunan Shinto), and to cover archaeological excavation costs and costs for establishing rainwater runoff control facilities in specified exclusive industrial districts Kyoto City landowner incentives for promoting the establishment of business facilities: Providing owners of land in specified industrial districts with incentives when they sell their land to businesses intending to use the land to establish business facilities 29
4 Osaka Cooperation with Osaka City etc. Growth zone tax system (prefectural tax) Reducing the local taxes (prefectural tax and municipal tax) on companies advancing to a special zone in the prefecture to do business on new energy and life sciences under approved business plans. Maximum reduction to prefectural tax is 100%. Tax system to promote industrial clusters (Reduction of Real Estate Acquisition Tax) Real estate acquisition tax on land and buildings (factories, buildings for research etc.) acquired in regional industrial promotion areas will be cut 50% (limit: 200 million) Subsidies to promote business start-ups by foreign companies Subsidies for foreign companies advancing into the prefecture to establish head offices. Building acquisition: 5% (subsidy rate) for buildings, facilities, etc.; maximum of 100 million Rent: 1/3 of rent (24 months); maximum of 60 million City tax preferential treatment under Sakai s municipal regulations on manufacturing investment promotion Taxes, such as the fixed asset taxes, on companies expanding or renovating factories in industrially suitable sites in the city will be reduced from 3/4 to 1/2 (for five years). Loans Proposed by Financial Institutions Loans necessary for construction of plants or research institutes etc. in Osaka Prefecture (Conditions differ depending on the financial institution.) Subsidies to promote investment in the prefecture Subsidies for building, expanding, or renovating plants or R&D facilities in target areas (maximum of 30 million) Subsidies for corporate enterprise taxes (maximum of 20 million for each company, only when a company is granted subsidies for the investment above). Sakai City subsidies for attracting business Subsidizing companies that newly open business locations in the city s downtown area, the Nakamozu area or Senboku New Town, to cover their rent and other costs, with increased subsidy rates for company headquarters, foreign-affiliated companies and foreign public establishments (50% at maximum for three years within an upper limit of 5 million) Sakai City Sakai City 30
5 Hyogo A 1/3 reduction in corporate business tax for five years and 50% reduction in real estate acquisition tax (maximum of 200 million) for companies relocating their headquarters from one of three major cities in Japan or from overseas to a special zone. Subsidies to promote establishment of industries (employment standards) Subsidies for new local employers (regular employment) ( 300,000 per person, maximum of 300 million) Start-up subsidy Financial assistance for market research and cost of corporate registration (up to 50%-the limit for market research is 1 million and 200,000 for registration costs) Assisting relocation of headquarters from one of three major cities in Japan or from overseas Including subsidies within 5% for capital investment Kobe City Reducing the fixed asset tax, the business facility tax, etc. on companies in strategic industries by 9/10 for five years (or 10 years for large facilities applicable to special treatment) (without upper limits) (by 2/3 for companies in non-strategic industries) Kobe City Subsidies to promote the large-scale investment of leading-edge manufacturing businesses Subsidies within 6% for capital investment (no ceiling) Subsidies for relocating headquarters from Tokyo s 23 wards, etc. Subsidies within 7% for the acquisition of buildings Employment assistance (up to 500,000 per person) (Up to 30% of the tax for the current term) Cooperation with Kobe & Himeji City etc. Subsidies for office rent Subsidizing 50% of office rent for foreign companies for 3 years (up to 2 million for each company per year). * The upper limit of subsidies for companies with offices in specified areas in Kobe City is 11 million, including additional subsidies from Kobe City. 31
6 Nara Exemption of real estate acquisition tax Reduction of business tax ( 75% for 3 years) Subsidy to promote strengthening of local sites Granted to companies investing in the relocation of HQs from the outside of the prefecture or in the expansion of HQs within the prefecture (maximum of 100 million) Business start-up subsidy Subsidies for businesses establishing plants or research institutes in the prefecture (up to 3 billion for large-scale lots ( 2 billion for plant / institute construction work which will start in FY2018 or later), 1 billion for medium sized lots). Subsidies for promoting establishment of telecommunications businesses Subsidizing capital investment and rent for the establishment of telecommunications businesses. Subsidies to support securing human resources Subsidies for recruitment advertisements and human resources introductions by businesses located in the prefecture. 32
7 Wakayama Reduction or exemption of business tax, real estate acquisition tax, fixed asset tax, etc. on businesses in applicable areas for 3 years. Low-interest loans for businesses located in the prefecture employing local residents. (Rate: long-term prime rate 3/4%; limit: 200 million; duration: Up to 10 years) Granted to businesses constructing applicable facilities and employing local people in the prefecture (up to 1 billion in the case of employing 100 or more people). Up to 15% of the fixed assets of applicable businesses employing local people in the prefecture (up to 9 billion in the case of employing 500 or more people). 33
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