KAGAWA INDUSTRIAL LOCATION GUIDE - Preferential system - Preferential system of Kagawa Prefecture

Preferential system of Kagawa Prefecture

1 Subsidy system for plants, experimental research establishments and information processing facilities (Corporate welcome ordinance of Kagawa Prefecture)

Sector	Plants		Experimental research establishments	Information processing facilities
Coverage area	All within the prefecture
Business category	Manufacturing		Establishment to conduct experiments and research	Information processing service business (including call centers)
Acquisition method	New building or extension	Others	New building or extension	New building or extension(Lease is available for call center.)
Require-ments	･Capital assets to invest excluding land should be over 100 Million yen and the number of new regular employees should be over 10.			･The number of new regular employees should be over 10. ･The number of new regular employees in call center should be over 50.
Subsidy rate	[Industrial park of the prefecture] ･10% of the capital assets to invest [Industrial park of the municipalities or city land development public corporation] ･10% of the capital assets to invest excluding land [Others] ･5% of the capital assets to invest excluding land	･5% of the capital assets to invest excluding land	[Industrial park of the prefecture / industrial support estate] ･15% of the capital assets to invest [Industrial park of the municipalities or city land development public corporation] ･15% of the capital assets to invest excluding land [Others] ･7.5% of the capital assets to invest excluding land	[Information processing service business other than call centers] ･10% of the capital assets to invest excluding land
Subsidy rate	《In specific industries》 [Industrial park of the prefecture] ･12% of the capital assets to invest [Industrial park of the municipalities or city land development public corporation] ･12% of the capital assets to invest excluding land [Others] ･6% of the capital assets to invest excluding land *Specific industries : manufacturing industry in environmental, medical, welfare, information and telecommunication, biotechnology, nanotechnology related industries	･6% of the capital assets to invest excluding land in specific area		[Call center] ･10% of the capital assets to invest excluding land (For 3 years. Only net increase is applicable after the second year.) ･Office rent expenses, 1/2 of communication cost (for 3 years) ･1/2 of equipment rental charge of lease equipment in the initial year over 5 years (Only the first year) * Limit of each rental charge and communication cost is 20 million yen a year. ･The number of new regular employees _ 300,000 yen (For 3 years. Only net increase is applicable after the second year.) ･The number of new short time worker insured employees _ 150,000 yen (For 3 years. Only net increase is applicable after the second year.)
Limit	Up to 500 million yen (Up to 500 million yen for 3 years for call center usage)

＜For further information contact＞ ●Industry Promotion Office of Kagawa Prefecture Phone: +81-87-832-3354

2 Financing system for plants and distribution facilities
(Kagawa prefectural financing system for the promotion of factory establishment)

Name of fund	Plant location promotion fund	Distribution facilities location promotion fund
Eligible establish-ment	The establishment of small and medium size enterprises should conduct the same business over one year. The establishment should have plans to build new or expand plant or experimental establishment or information processing facilities (hereafter called plants) within the prefecture, which are defined in the corporate welcome ordinance of Kagawa Prefecture, or obtain an existing plant within the prefecture. The following requirements must all be met: ･Capital assets value to invest excluding land: over 50 million yen ･Number of new regular employees should be over 5. (Those who live within the prefecture) ･The company must start business operation within 3 years in the designated plant. ･To relocate within the prefecture, the area of the production facility to be built should be of larger area than the plant to be abolished.	The establishment of small and medium size enterprises should conduct the same business over one year or be authorized as having same level of business experience. The establishment should have plans to build new or expand a distribution facility within the development area which are separately defined in specific areas or the basic plan of distribution base facility development of Kagawa Prefecture, or obtain an existing distribution facility within the prefecture. The following requirements must also all be met: ･Capital assets value to invest including land: over 150 million yen (It should be over 50 million yen if the distribution facility is to be built within a subdivision area by a local authority or by a land development corporation sponsored by a local authority within specific areas.) ･Number of new regular employees should be over 5. (Those who live within the prefecture) ･The company must start business operation within 3 years in the appropriate distribution facility.
Funds purpose	･The fund should be used for acquisition of land or construction of buildings and other facilities to be used for plant building or expansion. ･The fund should be used for acquisition of existing plant and other facilities or construction.	･The fund should be used for acquisition of land or construction of buildings and other facilities to be used for distribution facilities construction or expansion. ･The fund should be used for acquisition of existing distribution facility and other facilities or construction.
Limit of the funds	The lower value of either 2/3 of the cost for acquisition or construction of the facility or 500 million yen.	The lower value of either 2/3 of the cost for acquisition or construction of the facility or 100 million yen. (It will be lower value of 300 million yen if the prefecture governor authorizes it)
Period	Up to 10 years
Deferred period	Within 3 years
Rate	1.8%
Guarantor	By definition of financial institutions
Financial institutions	114 Bank, The Kagawa Bank, Takamatsu Shinkin Bank, Kanonji Shinkin Bank, Kagawa Community Bank Shinyo Kumiai, The Chugoku Bank, The Iyo Bank, Shikoku Bank, The Awa Bank, Tokushima Bank, The Shoko Chukin Bank
How to apply	Obtain confirmation of the governor of Kagawa Prefecture and apply at the counter for the financial institutions above.

*	Value of capital asset to invest means acquisition value of land, building and depreciable property defined by Clause 341 in the Local Tax Law. (Acquisition value within one year before start of construction of building is only applicable in acquisition value for land.)
*	Regular employees means those who receive confirmation by Section 1 in Clause 9 of the Employee Insurance Law by notification submission which is defined by Clause 7 and have a fixed address within the prefecture.

＜For further information contact＞●Business Support Division of Kagawa Prefecture Phone: +81-87-832-3343

3 Preferential measures for prefecture tax

Sector	Special measures for prefecture tax in order to welcome corporate organization	Special measures for prefecture tax in rural industry induction appointed area	Special measures for prefecture tax in a sparsely populated area
Business category	･Plants ･Experiment research establishments ･Information processing facilities ･Distribution facilities	･Manufacturing ･Road freight transport ･Warehouse ･Packaging ･Wholesale	･Manufacturing ･Hotel and inn ･Software ･Livestock farming (Private establishment) ･Fishery (Private establishment)
Applicable area	[Plants / Experimental research establishments / Information processing facilities] ･All areas within the prefecture [Distribution facilities] ･Industry dedicated area / industrial area / agricultural and industrial area / plant suitable area / industrial estate / distribution facility collective promotion area	Agricultural and industrial estate from rural industry induction appointed area ･Sanuki City Shidorinkai Mitakabe ･Higashikagawa City Minamino Fukue Nishiyama ･Mitoyo City Harashimo Nishinogawa Koudachuo Ienoura Takinoshita Marutani ･Ayagawa Town Ushikawa Sannou Kunihiro Tadokoro Higashitomikawa Yokoyamamaruyama Minamiasebi ･Mannou Town Tsubakidani Ikuma Miyata Oiage Sabumi	･Takamatsu City (Former Shionoe-Town) ･Higashikagawa City (Former Hiketa-Town) ･Tonosho Town ･Shodoshima Town ･Ayagawa Town (Former Ayakami-Town) ･Mannou Town (Former Kotonami-Town)
Applicable requirements	･Acquisition value of premises and depreciable assets: over 50 million yen ･Number of new regular employees should be over 5	･New expansion of industrial production facility: over 30 million yen ･Increase of employees should be over15. (Excludes manufacturing industry)	･New expansion of industrial production facility: over 27 million yen
Tax	･Real estate acquisition tax Tax rate reduction from 3% to 1%	･Exemption from enterprise tax (for 3 years) ･Exemption from real estate acquisition tax	･Exemption from enterprise tax (for 3 years) (For 5 years for livestock farming and fishery industry) ･Exemption from real estate acquisition tax
Applicable period	･By March 31 2009	･By March 31 2008	･By March 31 2007
Application time	･Apply for enterprise tax exemption when declaring enterprise tax every fiscal year. ･Apply for real estate acquisition tax exemption within 60 days after acquisition of real estate.

＜For further information contact＞
●Tax Administration Division of Kagawa Prefecture Phone: +81- 87-832-3066
●Chusan Region Prefecture Tax Office Phone: +81- 877-46-1613
●Tosan Region Prefecture Tax Office Phone: +81- 87-831-3151
●Seisan Region Prefecture Tax Office Phone: +81-875-25-3084
●Shozu Regional Office Taxation Division Phone: +81-879-62-0322


	For further information contact:Industry Promotion Office　Commerce, Industry and Labor Department　Kagawa Prefectural Government Phone: +81-87-832-3354 Fax: +81-87-806-0210 e-mail:sangyo@pref.kagawa.lg.jp