Incentive System of Kagawa Prefecture
Kagawa Prefectural Incentive System
1 Subsidy system for plants, experimental research establishments and information processing facilities
(Kagawa Prefecture Business Attraction Regulations)
| Class | Plants | Experimental Reseach Establishments | Information Processing Facilities | |
|---|---|---|---|---|
| Area | All Areas in Prefecture | |||
| Conditions | + Value of investment in fixed assets (excluding land) greater than 100 million yen and hiring of more than 10 new, full-time employees note: More than 10 new, full-time employees must be employed at the time of the grant application, and furthermore the average number of new, full-time employees employed at months end for the 6 months prior to the date of application must be 10 or more. note: New, full-time employees are employees who 1.are covered by unemployment insurance, 2.work more than 30 hours in a work week, and 3.have their residence registered in Kagawa Prefecture |
Non-Call Center Businesses + More than 10 new, full-time employees(Exception: companies employing 5 or more graduates of Kagawa high schools or universities are eligible for support) Call Centers + More than 50 new, full-time employees However, "Depopulated/Distant Island Promotion Areas" are eligible at 25 or more note: More than 10 new, full-time employees (more than 50 [25] for call centers) must be in office at the time of the grant application, and furthermore the average number of new, full-time employees in office recorded at month's end for the 6 months prior to the date of application must be 10 or more (more than 50 [25] for call centers) |
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| Assistance Percentage | Assistance for Investment + 10% of Value Invested in Fixed Assets (Including land purchased from the prefecture) Specific Fields Assistance for Investment + 15% of Value Invested in Fixed Assets (Including land purchased from the prefecture) note: Specific Fields: 1.Energy; 2.Robotics, Aeronautics, and Aerospace; 3.Industrial Activities in Fields Related to Food and Biotechnology |
Assistance for Investment + 15% of Value Invested in Fixed Assets (Including land purchased from the prefecture) |
Non-Call Center Businesses + 10% of Value Invested in Fixed Assets (not including land) + 50% of expenses for administrative office leasing (3 years) + 50% of expenses for use of communication lines (First year only) note: Maximum assistance limit for administrative office leasing and communication line use is limited to 10 million yen (20 million yen for companies employing more than 10 new, full time employees) + 500,000 yen per person for new, full-time employees beyond the first 10 Call Centers + 10% for Investment in Fixed Assets (not including land) [3 year term, but starting the second year, calculations based on only the net increase in asset value] + 10% of hiring expenses(3 years) + 50% of expenses for administrative office leasing, use of communications lines(3 years) + 50% of expenses for telecommunications equipment leasing for first fiscal year(only the first fiscal year) note: Maximum assistance limit for hiring expenses, administrative office leasing, using communications lines, and renting communications equipment is limited to 20 million yen + 300,000 yen per person for new, full-time employees (3 year periodAbut starting the second year, calculations based on only the net increase in number of new employees) + 150,000 yen per person for new, part-time workers (3 year periodAbut starting the second year, calculations based on only the net increase in number of new employees) note: If the business changes locations within the prefecture, the number of the new location's desks with information processing computer terminals must be greater than the number of desks with information processing computer terminals at the former location. |
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| Employment Assistance + 500,000 yen per person for new, full-time employees beyond the first 10 + 1 million yen per person for new, full-time employees beyond the first 50 |
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| note: Fixed assets qualifying for assistance are those that have been acquired after construction has commenced AND have been acquired no more than three years before the business has opened for operation (This includes land purchased from the prefecture no more than 3 years before commencement of construction) note: If the business changes locations within the prefecture, the new location's factory area must be greater than the factory area of the former location.The amount is calculated by dividing the increase in factory area by the gross floor space of the new factory, then multiplying that number by the value invested in fixed assets by the assistance percentage. |
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| Amount Limit | 500 million yen (500 million yen over 3 years for Call Centers) | |||
<Contact for Further Information>
>>Industry Promotion Office; Commerce, Industry and Labor Department; Kagawa Prefecture Phone: +81-87-832-3354
2 Financing System for Factories, Distribution Facilities, etc.
(Main Points of the Kagawa Prefecture Factory Establishment Promotion Fund System)
| Name of Fund | Factory Establishment Promotion Fund Distribution Facilities Preparation Promotion Fund | |
|---|---|---|
| Eligible Groups | For small/mid-range businesses that have been conducting operations continuously for over one year and that are (in accordance with the Kagawa Prefecture Business Attraction Regulations) establishing new or expanded factories, research testing facilities, information processing facilities (all of which shall hereafter be called "plants"), or are acquiring existing plants, etc.within the prefecture, the following conditions must be met in their entirety: + More than 50 million yen invested in fixed assets (excluding land) + More than 5 new, full-time employees (people living in Kagawa) + Operations at the plant in question must begin within 3 years + In the case of relocation within the prefecture, a plant for which the new plant production facilities to be established will have an area larger than that of the production facilities whose operations have been discontinued. |
For small/mid-range businesses that have been conducting operations continuously for over one year or that are recognized as having an operation history longer than this and who are establishing new distribution facilities or acquiring existing distribution facilities within the prefecture in the areas designated by the attached "List of Special Districts" or in the areas designated by the "Basic Plan for Establishing Distribution Facilities in Kagawa Prefecture," the following conditions must be met in their entirety: + More than 150 million yen invested in fixed assets (including land) [Exception: Companies which have invested 50 million yen in fixed assets, if the facilities are established in a special district where the land subdivision sales are done by a local self -governing body or by a Public Land Development Corporation which is financed by a local self-governing body.] + More than 5 new, full-time employees (people living in Kagawa) + Operations at the distribution facilities in question must begin within 3 years. |
| How the Fund May is Used | As necessary funding for the maintenance of factories | As necessary funding for the maintenance of distribution facilities |
| Financing Limit | An amount of up to either two-thirds of the expenses for the acquisition or construction of facilities being financed or 500 million yen - whichever is lower | An amount of up to either two-thirds of the expenses for the acquisition or construction of facilities being financed or 100 million yen - whichever is lower (Exception: cases in which the governor of Kagawa designates that a value of up to 300 million yen is necessary) |
| Period of Finance | 10 years | |
| Deferral Period | 3 years or less | |
| Financing Interest Rate | 2.00% (fixed rate) | |
| Guarantor | Decided by financial institutions | |
| Available Financial Institutions | 114 Bank, Kagawa Bank, Takamatsu Shinkin Bank, Kanonji Shinkin Bank, Kagawa Prefectural Shinkin Bank, Chugoku Bank, Iyo Bank,Ehime Bank, Shikoku Bank, Bank of Kochi, Awa Bank, Tokushima Bank, Shoko Chukin Bank, Mizuho Bank, Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation | |
| Application Method | Receive confirmation from the governor of Kagawa and then apply at the customer service desk of one of the available financial institutions | |
- According to Article 341 of the Local Tax Law, the amount of fixed assets is determined to be the value at which land, buildings, or depreciating assets can be acquired.(The acquisition value for land is considered to be the acquisition value of that land during the year before the construction of facilities begins)
- According to the provisions of Article 7 of the Employment Insurance Law, a full-time worker is determined to be someone who has been recognized according to Article 9 Item 1 of the same law, and who has a residence in Kagawa Prefecture.
<Contact for Further Information>
>>Business Support Division; Commerce, Industry and Labor Department; Kagawa Prefecture Phone: +81-87-832-3343
3.Prefectural Tax Incentive Measures
| Classification | Special Measures for Prefectural Taxes related to Industrial Accumulation Areas | Special Measures for Prefectural Taxes related to Business Attraction |
|---|---|---|
| Industry Category: | + Manufacturing + Information Technology + Information Technology Application Industries + Natural Science Research Facilities |
+ Factories + Research Facilities + Information Processing Facilities + Distribution Facilities |
| Eligible Areas | All Areas in Prefecture | Factories/Research Facilities/Information Processing Facilities + All Areas in Prefecture Distribution Facilities + Specialty industrial areas, manufacturing areas, agricultural industrial districts, land suitable for factories, industrial parks, distribution facility accumulation and promotion areas |
| Terms that Apply | + Approval according to the Industrial Location Promotion Law's "Industrial Location Plan" + More than 5 new, full-time employees with residences in Kagawa Prefecture must be employed at the new facility (Please verify the conditions for worker eligibility before hand). + The price for acquisition of land and buildings on the premises must exceed 200 million yen ( Must exceed 50 million yen for industries related to agriculture, forestry, and fishing). |
+ Value of buildings and depreciating assets must be more than 50 million yen + More than 5 new, full-time employees(Please verify the conditions for worker eligibility before hand). |
| Tax Item Content | + Exemption from Real Estate Acquisition Tax | + Application of 1% real estate acquisition tax |
| Term | + Until December 19, 2012 | + Until March 31, 2013 |
| Caution | + Qualifying land is limited to that portion which is directly under the orthographic projection of the company's buildings whose construction is to begin within one year of acquistion of said land. | |
| Application Period | + Application for Business Tax Exemption is due when you file your final income tax return for each fiscal year. + Application for the Real Estate Tax Exemption is due within 60 days of purchase of real estate |
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<Contact for Further Information>
>>Tax Administration Division; General Affairs Department; Kagawa Prefecture Phone: +81-87-832-3066
