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||
|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||
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
■When a property has been leased
Subsidy of 1/3 of the rent over a period of 24 months
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)
1-5-102, Nanko-kita, Suminoe-ku, Osaka 559-0034 Japan