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Subsidy program/tax benefits

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
  • ■Corporate citizens' tax / Office tax
    When moving from outside of Osaka City: 100% tax reduction for the first 5 years and a 50% reduction for the following 5 years (For the largest case. The same applies below.)
    ⇒ 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.
  • ■Fixed asset tax / City planning tax
    100% tax reduction for the first 5 years and a 50% reduction for the following 5 years for fixed assets (land, buildings, depreciable property) acquired after submitting a business plan application and put into service within 3 years after the plan’s approval
    *Only fixed assets for operations approved in the business plan are eligible.
Application period for approval Until Mar 31, 2024
Special Tax Incentive Program for Osaka Prefecture
■Special Growth Zone Tax Incentive Program for Osaka Prefecture
The 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).

Click here for more information

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.

Click here for more information
(Only available in Japanese.)

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
  • 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.

Click here for more information
(Only available in Japanese.)

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

Number of fulltime employees Maximum amount
5～24 employees 15 million yen
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
5～24 employees 10 million yen
25～99 employees 20 million yen
100～199 employees 40 million yen
200 or more employees 60 million yen

Click here for more information
(Only available in Japanese.)

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