Introduction of Kagawa Prefecture Transportation Access Introduction of industrial estate Preferential system Research and support organization

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
sIn specific industriest
[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)
ƒFor further information contact„ œIndustry Promotion Office of Kagawa Prefecture Phone: +81-87-832-3354
Procedures of subsidy system


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.
ƒFor further information contact„œBusiness 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.
ƒFor further information contact„
œTax Administration Division of Kagawa Prefecture Phone: +81- 87-832-3066
œChusan Region Prefecture Tax Office Phone: +81- 877-46-1613
œTosan Region Prefecture Tax Office Phone: +81- 87-831-3151
œSeisan Region Prefecture Tax Office Phone: +81-875-25-3084
œShozu 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