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)

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 ※More than 10 new, full-time employees must be in 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.		【Non-Call Center Businesses】 ◎More than 10 new, full-time employees 【Call Centers】 ◎More than 50 new, full-time employees However, "Depopulated/Distant Island Promotion Areas" are eligible at 25 or more ※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)
	◎Based on the Kagawa Prefecture Business Attraction Regulations, the business must not have received assistance measures in the past (Except in the case of the installation of facilities for newly initiated projects)
Assistance Percentage	【Assistance for Investment】 ◎10% of Value Invested in Fixed Assets (Including land purchased from the prefecture)	【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) 【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） ※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 period、but 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 period、but starting the second year, calculations based on only the net increase in number of new employees）
	Specific Fields 【Assistance for Investment】 ◎12% of Value Invested in Fixed Assets (Including land purchased from the prefecture) ※Specific Fields：Industrial activities in fields related to Environment, Medicine/Welfare, Telecommunications, Biotechnology, Nanotechnology
	【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
	※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) ※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.
Amount Limit	500 million yen (500 million yen over 3 years for Call Centers)

＜For further information contact＞ ●Industry Promotion Office of 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:	◎Expenses for the acquisition or construction of land that is included in the new or expanded plant facilities, buildings, or other facilities ◎Expenses for the acquisition of already existing plants, or the acquisition or construction of other facilities	◎Expenses for the acquisition or construction of land that is included in the new or expanded distribution facilities, buildings, or other facilities ◎Expenses for the acquisition of already existing distribution facilities, or the acquisition or construction of other 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, Shikoku Bank, Awa Bank, Tokushima Bank, Shoko Chukin Bank
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 the 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.

＜For further information contact＞●Business Support Division of 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	Special Measures for Prefectural Taxes related to the Introduction of Industrial Facilities into Agricultural Regions	Special Measures for Prefectural Taxes related to Depopulated Areas
Industry Category:	◎Manufacturing ◎Information Technology ◎Information Technology Application Industries ◎Natural Science Research Facilities	◎Factories ◎Research Facilities ◎Information Processing Facilities ◎Distribution Facilities	◎Manufacturing ◎Highway Freight Transportation ◎Storage ◎Packaging ◎Wholesale	◎Manufacturing ◎Inns and Hotels ◎Software Companies ◎Stockbreeding (individuals) ◎Marine Products （individuals）
Eligible Areas:	Industrial Accumulation Areas as listed in the "Kagawa Production Promotion Plan" (All of Kagawa)	【Factories・Research Facilities・Information Processing Facilities】 ◎All areas in Kagawa 【Distribution Facilities】 ◎Specialty industrial areas、manufacturing areas、agricultural industrial districts、land suitable for factories, industrial parks、distribution facility accumulation and promotion areas	Among areas for the Introduction of Industrial Facilities into Agricultural Regions, the following are eligible: ◎Sanuki City: Shido Seafront, Mitakabe ◎Higashi Kagawa City: Minamino, Fukue, Nishiyama ◎Mitoyo City: Harashimo, Nishi-no-gawa, Kouda Chuo, Ie-no-ura, Taki-no-shita,、Marutani ◎Ayagawa Town: Ushikawa, Sanno, Kunihiro, Tadokoro, Higashi Tomikawa, Yokoyama Maruyama, Minami Ashibi ◎Manno Town: Tsubakitani, Ikama, Miyata, Oiage, Sabumi	◎Takamatsu City（former Shionoe Town） ◎Higashi Kagawa City（Former Hiketa Town） ◎Tonosho Town ◎Shodoshima Town ◎Ayagawa Town（former Ayakami Town） ◎Manno Town（former　Kotonami Town） Total: 6 cities and towns
Terms that Apply:	◎Approval according to the Industrial Location Promotion Law's "Industrial Location Plan"	◎Value of buildings and depreciating assets must be more than 50 million yen ◎More than 5 new, full-time employees	◎Value of new or expanded manufacturing facilities more than 30 million yen ◎Personnel increase of more than 15 employees（Except in manufacturing）	◎Value of new or expanded manufacturing facilities more than 27 million yen
Tax Item Content:	◎Exemption from Real Estate Acquisition Tax	◎1% reduction in Real Estate Acquisition Tax	◎Exemption from Business Tax (3 year period) ◎Exemption from Real Estate Acquisition Tax	◎Exemption from Business Tax (3 year period) [5 year period for stockbreeding and marine product industries] ◎Exemption from Real Estate Acquisition Tax
Term:	◎Until December 19, 2012	◎Until March 31, 2013	◎Until December 31, 2009	◎Until March 31, 2010
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


	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