National and Local Support Systems in Strategic Zone
Business applicants as Strategic Zone Business Model are subjected to exemptions from governmental authoritative requirements and also tax, financial and monetary support.
National Support Systems
Preferential legal measures
- Preferential legal measures are prescribed in advance concerning the relaxation of regulations on industrial land use (special measures of the Building Standards Act) and on green land areas in factory sites (special measures of the Factory Location Act and the Act on Formation and Development of Regional Industrial Clusters through Promotion of Establishment of New Business Facilities, etc.)
- Preferential measures to promote projects in the comprehensive special zones are successively added by national and local councils,
which discuss the matter together and then revise the law, government ordinance, ministerial ordinance or notification based on the regulations.
Financial support measures
Budgets of related ministries and agencies will be preferentially utilized, and flexibly topped up from the reserve fund for promoting comprehensive special zones.
Preferential tax measures (International Strategic Zone)
Following measures are selectively applied:
An investment tax credit or special depreciation
Upon acquisition of machines, buildings, etc. to be used for business in a comprehensive special zone, an investment tax credit or special depreciation is available.
- Investment tax credit: 15% of the acquisition cost (8% for buildings)
- Special depreciation: 50% of the acquisition cost (25% for buildings)
A tax deduction
A tax deduction of 20% exemption on income is available for enterprises that exclusively conduct business in a comprehensive special zone, based on the preferential legal measures.
An interest subsidy
An interest subsidy (not exceeding 0.7%, for five years) is available on loans made by a government-designated financial institution for conducting business in a comprehensive special zone.
Local Support Systems
Ibaraki Prefectural Government
Exemption from prefectural taxes for businesses in Ibaraki Prefecture
Exemption from prefectural taxes for businesses that set up or construct a new office (factory, plant, etc.) in Ibaraki Prefecture and hire at least five additional employees by March 2015
- Exemption for three years from enterprise tax on corporations, depending on the percentage of employees additionally hired when opening a new office, etc.
- Exemption from real estate acquisition tax for buildings and land (the part on which the building is built) related to the opening of the new office, etc.
City of Tsukuba
Tax abatement for entities engaged in one or more strategic zone projects
Exemption from fixed asset tax and city planning tax for corporate entities that engage in projects in the international strategic zone and receive corresponding national preferential tax measures (tax measures for the promotion of investment in plant and equipment) by March 2016
- Abatement for up to three years of fixed asset tax and city planning tax related to buildings, machinery, equipment and land
- Exemption from fixed asset tax and city planning tax for those who provide land for verification tests by March 2016
Tsukuba City Subsidy for stimulating industries
For enterprises opening a new office, etc. in the city by March 2015, a subsidy equivalent to the fixed asset tax for the office in question
- A one-year (three years for robot/environment-related enterprises) subsidy equivalent to the fixed asset tax on the land, building and depreciable assets of the new office, etc. depending on the number of employees additionally hired when opening the new office, etc.