IncentivesSubsidy Programs

O-BIC

Program O-BIC Support Program for Foreign Companies.
Eligibility Companies which complete registration as a corporation, assisted by O-BIC or other related public organizations.
Requirements
  1. Must have been interviewed by O-BIC prior to the registration.
  2. Must have completed the corporate registration of its head office or branch office in Osaka Prefecture.
  3. Must have completed the corporate registration using the services of a Supporting Company of O-BIC.
  4. Foreign capital ratio must be one-third or more.
Subsidy Up to 100,000 yen
  • The subsidy covers compensation paid to the service provider Supporting Company.
  • The followings are NOT covered:
    Expenses for stamps, notarization, and additional costs paid to governmental or public offices, including consumption taxes. Also, expenses supported (either subsidized or otherwise) by any other programs.
  • The program will be terminated when the annual budget amount is reached, even in the middle of the fiscal year.
Application deadline All required documents must be submitted within 60 days of the registration date (including the registration date).
See details here (PDF: 411KB)

Osaka Prefecture Subsidy

(i)Foreign-affiliated company establishing a business with headquarter functions in Osaka Prefecture.

Acquiring a Building : 5% of the cost of the house or depreciable assets is subsidized (up to 100 million yen).
Leasing a Building: one-third of the rent and other costs (24 months worth) is subsidized (up to 60 million yen).

(ii)Small or medium-sized companies newly building or expanding factories or research and development facilities.

5% of the cost for building and machinery equipment is subsidized (10% in the case of companies having their head office, factory, or research and development facility in Osaka Prefecture) (up to 30 million yen).

Tax incentives in Osaka Prefecture and Osaka City

Companies engaged in pioneering projects related to new energy and life sciences

Osaka Prefecture Real estate acquisition tax will be reduced by up to 100%. Prefectural inhabitant tax for corporations and corporate business tax will be reduced by up to 100% for the first 5 years and will be reduced by up to 50% for the subsequent 5 years.
Osaka City City inhabitant tax for corporations, business office tax, fixed asset tax and city planning tax be reduced by up to 100% for the first 5 years and will be reduced by up to 50% for the subsequent 5 years.
  • You may use the tax incentives of both Osaka Prefecture and Osaka City together. However, duplicate use with (i) and/or (ii) is not allowed.

Sakai City Business Growth Promotion Subsidy

When a company establishes its headquarters functions in an existing urban district

Subsidy amounts

Subsidy for investment: Target costs × 5% (10% for SMEs). Upper limit 100 million yen
Subsidy for employment: Number of newly hired full-time employees living in the city x 0.2 million yen x 3 years. Upper limit 50 million yen.

Tax Reduction System for Promoting Investment in Sakai City

Investment in sites suitable for manufacturing

Fixed property tax, Urban planning tax, Business office tax: Tax reduce rate is 1/2 to 2/3. Maximum 5 years.

Investment in urban business sites

Fixed property tax, Urban planning tax, Business office tax: Tax reduce rate is 1/2 to 3/4. Maximum 5 years.

For cities other than Sakai City, please contact each local administration.

Subsidy Program for Foreign Financial companies, etc., Establishing a Base in Osaka City

This subsidy program aims to support foreign financial companies, etc., to establish a new business location in Osaka City by subsidizing their expenses for conducting a preliminary survey or establishing a business location

Subsidy amounts

Preliminary survey: Total amount of expenses that are applicable for the subsidy, up to a maximum of 1.1 million yen
Base establishment: 50% of the total amount of expenses that are applicable for the subsidy, up to a maximum of 10 million yen

Information on Local Tax Credit Scheme for Overseas Financial Corporations

Incentives to reduce corporate inhabitant tax and corporate enterprise tax for up to 10 years available to companies locating in Osaka City by FY 2025, the year of Expo 2025 Osaka, Kansai.

Taxes eligible for tax credit By Osaka Prefecture : Corporate inhabitant tax (per capita levy/corporation levy), corporate tax.
By Osaka City : Corporate inhabitant tax (per capita levy/corporation levy).
Effective tax credit rate Tax credit calculated based on the proportion of the corporation’s business activities engaged in “eligible business activities” (100% at maximum).
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