Incentives for foreign/foreign-affiliated companies expanding into the International Economic Zone
Incentives for business establishment are available for foreign/foreign-affiliated companies that are starting business in or transferring to the International Economic Zone (IEZ) designated by Hyogo Prefecture, and conducting Designated Priority Business certified by Hyogo Prefecture under certain conditions.
1. Office rent subsidy
|Object||Office rent for a foreign-affiliated company that established business operations in the IEZ by renting an office or other building.|
|Subsidy ratio||Up to 1/2 (1/4 each by the prefecture and the municipality)|
|Max. amount||[Kobe City] JPY ¥1,500/m2 per month; JPY ¥10,000,000 per year|
[Hyogo Prefecture] JPY ¥750/m2 per month; JPY ¥1,000,000 per year
(JPY ¥1,500/m2 per month; JPY ¥10,000,000 per year if 11 or more new full-time employees are hired)
|Period||Up to 3 years|
*Kobe city adds another rent subsidy in the IEZ in Kobe when a company meets a certain requirements.
2. Establishment support subsidy
〇 Subsidy for market research cost, etc.
|Object||Costs related to market research conducted with the purpose of establishing business operations in the IEZ.|
|Subsidy ratio||Up to 1/2|
|Max. amount||¥1 million per company|
〇 Subsidy for corporate registration costs, etc.
|Object||Costs for the corporate registration and acquisition of status of residence required when the company establishes business operations in the IEZ.|
|Subsidy ratio||Up to 1/2|
|Max. amount||¥200,000 per company|
*An application is required prior to starting market research or related activities (expenses after the acceptance of the application are subject to this system).
*The subsidy will be provided only after the company has established itself in the IEZ. Approval will not be given with the above mentioned application. The expenses to be covered by the subsidy will be decided through examination.
3. Employment Subsidy
|Object||Personnel costs for newly employed workers of a company that has established business operations in the IEZ.|
|Amount||¥300,000 per newly employed full-time worker|
|Requirement||New employment of 11 or more full-time workers|
|Max. amount||¥300 million|
*Newly employed full-time worker: A person newly employed or transferred from outside of Hyogo Prefecture after the date the confirmation of Designated Priority Business is made, directly employed and joining the employment insurance system, continuously employed without a fixed term, and with a registered address within Hyogo Prefecture.
4. Reduction of corporate enterprise tax
|Object||Differential taxation on a company that has established business operations in the IEZ.|
|Reduction ratio||1/3, for 5 years|
|Requirement||Occupied floor area of 1,000 m2 or more.|
*The amount of the reduction will be decided by multiplying the standard taxable value by the ratio of the employees who are engaged in Designated Priority Business to overall employees within Hyogo Prefecture.
〇 Foreign and foreign-affiliated companies
|Foreign company||A company registered outside Japan under foreign decree|
|Foreign-affiliated company||A company registered in Japan under Japanese decree, and whose issued stock is owned by, or which has received contributions from, a foreign company in excess of one-third of its total value|
〇 International Economic Zone
The International Economic Zone includes the following areas, as designated in the Ordinance concerning Invigoration of Economy and Employment through Promotion of Business Establishment with an aim of creating an international economic hub equipped with a global and attractive business environment
[Sannomiya, Port Island (Phase I and II), Rokko Island, HAT Kobe, Minami-Ashiya, Harima Science Garden City, around Himeji Station, Hirohata and Aboshi]
〇 Designated Priority Business
A business that contributes to the invigoration of Hyogo’s economy and the creation of new employment, and that (i) utilizes high technology or (ii) contributes to the creation of comfortable and high-quality life for citizens or to the promotion of international economic exchange