Osaka offers a variety of incentives according to the type of investment and business field.
Special municipal tax incentive programs in Special Zones of Osaka City
In case new businesses are established within the Special Zones 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).
Target Areas: Kansai Innovation International Strategic Comprehensive Special Zones
The Osaka Station Area, Yumeshima/Sakishima Area and Hanshin Port Area are special zones in which local and national governments offer comprehensive support to promote innovation in the fields of new energy and life science - two strong business fields in the Kansai region.
１．Outline of Special Municipal Tax Incentive Programs Available in Osaka City
|Program Outline||Reduces municipal taxes for conducting pioneering business related to new energy or the life sciences in Special Zones of Osaka City. The reduction is granted after certification of a business plan and the enterprise’s entry into the Special Zone. The purpose is to concentrate industry and strengthen international industrial competitiveness.|
|Target Areas||Osaka Station Area, Yumeshima & Sakishima Areas and Hanshin Port Area|
|Eligible Business||Businesses related to or supporting 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, 2024|
|Special Tax Incentive Program for Osaka Prefecture||
■Special Growth Zone Tax Incentive Program for Osaka PrefectureThe program offers exemptions to prefectural taxes in Osaka Prefecture (prefectural corporate tax, corporate enterprise tax, real estate acquisition tax).
By applying this program alongside the aforementioned municipal tax incentive programs, local taxes (municipal and prefectural) levied on operations approved in a business plan can be reduced to as low as zero. For more about the Special Growth Zone Tax Incentive Program for Osaka Prefecture, see here (Japanese only).
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 life science, new energy, etc.|
|Requirements for subsidies/Subsidy rate||
2.Outline of Subsidy for Business Start-up of Foreign-Capital Enterprise
|Program Outline||Foreign companies, etc., which have their headquarters functions in the Prefecture, will be subsidized for part of their investments, etc.|
|Eligible business||Foreign companies, etc., which have their offices with headquarters functions* in Osaka Prefecture
(*Business offices where one of the following departments are located: research and planning department, information processing department, research and development department, international business department, information service business department, or other administrative operations department)
|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 50㎡ or more and 5 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