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Subsidy program/tax benefits

Osaka offers a variety of incentives according to the type of investment and business field.

Tax incentive programs available in designated areas in Osaka City. (Local Tax Reduction up to 100%)

In case new businesses are established within designated areas of Osaka City that are engaged in the advanced fields of new energy and life science, municipal and prefectural local tax reduction can be applied up to 100% for the first 5 years and 50% for the following 5 years. (when the required conditions are met).

(Sample image of corporate effective tax rates when using a combination of municipal, prefectural and national tax incentives)

(Target areas: Kansai Innovation Comprehensive Global Strategic Special Zones) Osaka Station Area, Yumeshima/Sakishima Area and Hanshin Port* Area are special zones in which local and national government offer comprehensive supports to promote innovation in the fields of new energy and life science - two strong busines fields in Kansai region.

*A collective term for Sakai Senboku Port, Osaka Port, Amagasaki Nishinomiya Ashiya Port and Kobe Port.


1.Outline of Tax Incentive Programs in Osaka City and Osaka Prefecture

Program Outline Local tax can be reduced to the corporations /organizations that have established their business operations in the designated areas of Kansai Innovation Comprehensive Global Strategic Special Zones within Osaka City and those that have started their new business in new energy. life science and the related business.
Target Areas Osaka Station Area, Yumeshima & Sakishima Areas and Hanshin Port Area
Eligible Business New energy, Life Science, Business related to New Energy and Life Science. As a rule, business plans will be approved upon considering the opinions of a review board comprised of external experts. Please be aware that business operations must commence within 3 years of approval.
Applicable taxes/details on deductions
  • ■Corporate citizens' tax / Office tax
    When moving from outside of Osaka City into the designated area of the Special Zones to establish a new business: 100% tax reduction for the first 5 years and 50% for the following 5 years.
    ⇒ When moving within Osaka City to the designated area of the Special Zones, tax reduction is applicable based on the increase rate of the employees etc.
  • ■Corporate prefectural resident's tax / Corporate Enterprise tax
    When moving from outside of Osaka Prefecture into the Special Zones to establish a new business: 100% tax reduction for the first 5 years and 50% for the following 5 years.
    ⇒ When moving from inside Osaka Prefecture into the Special Zones: Tax reduction is applicable based on the increase rate of the employees etc.
  • ■Fixed asset tax/City planning tax
    For the fixed property in the designated zones that has been acquired and has begun to be used within 3 years after receiving approval for a business plan : 100% tax reduction up to 5years and 50% for the following 5 years.
  • ■Real estate acquisition tax
    Tax exemption(Maximum 100% exemption) of fixed assets (land, buildings) acquired after submitting a business plan application and put into service within 3 years after the plan’s approval and which have been in operation for 1 year in the specified growth industry.
    *For the fixed asset tax/city planning tax and real estate acquisition tax, only fixed assets for operations approved by the above-mentioned business plan are eligible.
Application period for approval Until Mar 31, 2022
2.National Government Support Programs

In case the applied business was approved as an eligible business through the deliberation by the national government, preferential measures of regulations / institutional policies will be applied in addition to the support in taxation and finance.

Support Program available throughout Osaka City

The following subsidies are available through Osaka Prefecture including Osaka City (upon approval from a review board). However, they cannot be applied in conjunction with the above tax incentives.

1.Outline of subsidies for promoting prefectural investment

Program Outline Subsidies will be offered to small and medium-sized corporations carrying out new construction or renovation projects for R&D facilities.
Eligible business Small and medium-sized enterprises which are engaged in advanced technologies that newly build, expand or renovate R&D facilities in the fields of biotechnology/life science, robotics, information appliances, new energy, etc.
Requirements for subsidies/Subsidy rate
  • ■Subsidies for investments
    Company size Small and medium-sized enterprises
    (In case of manufacturing companies, companies or private proprietor with 300 or less employees or companies and private proprietor with 300 million yen or less in capital except for certain field of business.)
    Investment 100 million yen or more
    Employment requirements The total number of fulltime employees in Osaka prefecture must not be less than the numbers applied at the time of grant applications on the starting date of operations
    Subsidy rate 5% of the amount invested in buildings and machinery and equipment.
    (10% in case of companies which already have a head office, factory or R&D facility in the prefecture)
    Maximum amount Up to 30 million yen
    Application period By one day prior to the official contract or order placement for building/installation/renovation of the projects.
  • ■Subsidies on corporate enterprise taxes

    Businesses which have been awarded a subsidy for the above investments and met the following employment requirements, may receive a subsidy on corporate enterprise taxes upon filing an application.

    Employment requirements 5 or more new employees must be hired from within Osaka prefecture and 10 or more fulltime employees residing in the prefecture must be employed at the time of application
    Subsidy rate 50% of corporate enterprise taxes imposed on business activities for subsidized private business establishments in the first and second fiscal years following the commencement of operations
    Maximum amount 20 million yen
    Application period Up until 3 months from the date of payment for corporation enterprise taxes at the end of the first and second fiscal years following the commencement of operations

2.Outline of Subsidy for Business Start-up of Foreign-Capital Enterprise

Program Outline Non-Japanese companies moving into Osaka Prefecture to establish a new head office are entitled to a partial subsidy of the amount invested in Osaka Prefecture.
*Offices registered as Corporate Head office and those which possesses head office functions
Eligible business Foreign-affiliated companies to establish a headquarters in Osaka Prefecture.
Requirements for subsidies The following requirements must be met within three years from the day following the date of application.
Acquisition of an office space with a total area of 250㎡ or more and 25 or more fulltime employees
(When moving within Osaka Prefecture, 25 or more employees must be added)
Application period By a previous day of the official contract or order placement for lease or acquisition.
Subsidy rate / limit The maximum amount available for subsidies may change depending on the form of establishment (whether a property is purchased or leased) and the total number of full-time employees.
■When a property has been purchased

5% subsidy of the cost of the property, machinery and equipment

Number of fulltime employees Maximum amount
25~99employees 30 million yen
100~199employees 60 million yen
200 or more employees 100 million yen
■When a property has been leased

Subsidy of 1/3 of the rent over a period of 24 months

Number of fulltime employees Maximum amount
25~99 employees 20 million yen
100~199 employees 40 million yen
200 or more employees 60 million yen

For details of other programs or any requests, please reach us via following contact or inquiry form.

Osaka International Business Promotion Center International Affairs Department
(IBPC Osaka Investment Promotion Project)
Address:
1-5-102, Nanko-kita, Suminoe-ku, Osaka 559-0034 Japan
TEL:+81-6-6615-7130 FAX:+81-6-6615-5518