The Incentive System in Numbers

If you conduct business in depopulated areas or areas where peninsula revitalization measures are being implemented, you may be eligible for tax benefits based on various laws.

Special Measures Act on Support for Sustainable Development in Depopulated Areas (Depopulation Act) 　Act No. 19 of March 31, 2021

Bungotakada City, Usa City, Kunisaki City, Himeshima Village, Kitsuki City, Taki City, Tsukumi City, Oita City (former Nozuhara Town, former Saganoseki Town), Yufu City (former Shonai Town), Saiki City, Taketa City, Bungo-Ono City, Kokonoe Town, Kuju Town, Hita City, Nakatsu City (former Sanko Village, former Honyamakei Town, former Yamakuni Town)
* Only the areas within the brackets are included in the municipalities listed in parentheses.

 

*1 Businesses with capital exceeding 50 million yen are only eligible for acquisition through new construction or expansion.
*2 Facilities attached to buildings are only eligible when acquired together with the building.
*3 For corporations with a consolidated parent corporation for tax purposes, the capital of the parent corporation is used for the determination.
*4 If accelerated depreciation has been applied through subsidies, etc., the value after the accelerated depreciation is used for the determination.
*5 The total amount of fixed assets (limited to those directly used for business purposes) acquired per business year is determined.
*6 Calculated by "income that should be the tax base in Oita Prefecture x number of employees related to the newly constructed or other facilities / number of employees in the prefecture".
*7 Tax exemption for land is only available if construction of the house begins within one year from the day after the acquisition date.
*8 Only the portion directly used for business purposes is eligible for tax exemption.

Peninsula Development Act　June 14, 1985, Act No. 63

Hinode Town

*1 Calculated by: "Income that should be the tax base in Oita Prefecture x number of employees related to the newly installed equipment / number of employees in the prefecture".
*2 Land tax exemption is only available if construction of a house begins within one year from the day after the acquisition date.
*3 Only the portion directly used for business purposes is eligible for tax exemption.

When making capital investments on remote islands, tax benefits are available if certain requirements regarding industry and acquisition price are met.

If you submit a "Regional Economic Leading Business Plan" to the prefecture during the planning stage (before construction begins) and it is approved, you will be eligible for the following various preferential treatment measures.

 *1 Added value = Sales revenue – Total expenses (cost of sales + selling, general and administrative expenses) + Total wages + Taxes

 *1 Added value = Sales revenue – Total expenses (cost of sales + selling, general and administrative expenses) + Total wages + Taxes

(2) Satisfy any of the following (determined by business establishments within the prefecture) (※3):
　　1) The amount of transactions between businesses within the prefecture has increased by 15 million yen since the start of the program ;
　　2) Sales have increased by 330 million yen since the start of the program ;
　　3) The number of employees has increased by 10 people since the start of the program;
　　4) The amount of wages, etc. paid has increased by 30 million yen since the start of the program.

(※2) (※3) Values ​​assuming a business plan period of 5 years. If the plan period is shorter than that, the value is calculated by dividing the plan period by 5 years.

Special tax treatment for local taxes (real estate acquisition tax, fixed asset tax)

　You will need to apply for certification from the government and receive a certificate of certification.

Requirements

All of (1) to (4) must be met. *For detailed requirements, please check the Oita Prefecture website.
(1) Investment amount requirement (for items acquired by March 31, 2025)

(2) Sales growth rate must increase to a certain level.
(3) Other (return on investment, labor productivity, etc. must be met.)
(4) The company must be a corporation that files a blue tax return.

nefits

・Assets eligible for tax exemption = land, buildings, attached facilities, and structures

pecial provisions for corporate tax

You need to apply for certification from the government and receive a certificate of certification.

Requirements

(1) "Investment amount ≧ 20 million yen" and "Investment amount ≧ 20% of the previous year's depreciation expense" (for assets acquired by March 31, 2025)
(2) to (4) are the same as the "Special tax treatment for local taxes (real estate acquisition tax, fixed asset tax)"

Benefits

others

(1) Reduction in interest rates on equipment loans by the Japan Finance Corporation
(2) Separation of guarantees by credit guarantee corporations
(3) Debt guarantees by the Food Distribution Structure Improvement Promotion Organization
(4) Reduction in patent fees (limited to small and medium-sized enterprises) and reduction in registration fees for regional collective trademarks
For more information, please contact each organization.

Special Measures Act for the Sustainable Development of Depopulated Areas

Applicability requirements

 Benefits

 Application deadline

　March 31, 2027

Pre-application procedures

Not required

Regional Future Investment Promotion Act

Applicability requirements

  Benefits

Taxation					others
National Tax		Local taxes
Special depreciation	Tax Credit	Business Tax	Real estate acquisition tax	Property tax
〇	〇	―	〇	〇 (3 years)	Low-interest loans, etc.

Application deadline

　March 31, 2025

Pre-application procedures

　Required

 

Eligible persons: Small and medium-sized enterprises filing blue tax returns who will install the applicable equipment by the end of March 2025

Incentives

Immediate depreciation or tax deduction of corporate tax etc. on acquired assets

　Eligible items: Building accessories, machinery, tools, fixtures, and software.
　Acquisition price requirements: Must be above a certain price.
　　Machinery: 1.6 million yen. Tools and fixtures: 300,000 yen.
　　Building accessories: 600,000 yen. Software: 700,000 yen.

　Other requirements　:

• It must be production facilities (facilities directly used for business purposes)
  *Office equipment and fixtures, building and auxiliary facilities related to head offices, etc. are not eligible.
• It must be a domestic investment.
• It cannot be a used asset or a rental asset, etc.

Introduction of equipment to improve productivity

Target equipment

Single equipment

Necessary procedures

Please obtain a certificate from the equipment manufacturer.

Requirements

Equipment with an average annual productivity improvement of 1% or more compared to the previous model

Introducing equipment to improve profitability or digitalize equipment

Target equipment

Multiple equipment allowed

Necessary procedures

Prepare an investment plan and have it reviewed in advance by a certified public accountant or tax accountant.

Requirements

For profit-enhancing equipment, the average annual return on investment must be 5% or more.

• Digitalization equipment: Equipment that enables remote operation, visualization, or automated control.
  　*1 When introducing any of these types of equipment, it is necessary to set up a management evolution methodology for small and medium-sized enterprises, etc.

Contact

　

Contact name

Ministry of Economy, Trade and Industry, Kyushu Bureau of Economy, Trade and Industry, Management Support Division

ＴＥＬ

092-482-5593

When relocating or expanding head office functions, you can apply for a "Plan for the Development of Specific Business Facilities in Regional Vitality Improvement Areas, etc." at the planning stage (before construction begins) and receive preferential treatment such as tax exemptions and debt guarantees by receiving approval.

Business location

Those who carry out business across multiple business locations or company-wide business

Research and Planning Division

A department that develops standards and plans for businesses and products, and conducts market research

Information Processing Department

Departments that specialize in developing systems and programs for their own company (not for commercial purposes) Departments that conduct basic research, applied research, and development research

Research and Development Department

Departments conducting basic research, applied research, and development research

International Business Division

A department that handles trade operations related to imports and exports and oversees overseas business.

Other Management Department

A department that handles general affairs, accounting, and human resources management.

Information Services Business Division

A division that develops software, provides information processing and provision services, and provides Internet-related services.

Part of the Commercial Business Division

A department that handles sales and purchasing operations that are conducted exclusively within the company using telephone and online tools.

Part of the Service Business Division

A department that handles research and planning, information processing, research and development, international business, and other management-related outsourcing.

Research Institute

Those who play an important role in research and development by business operators (including research and development facilities within factories)

Training Center

Playing an important role in human resource development by business operators

1.  It must conform to the Oita Prefecture Certified Regional Revitalization Plan (Oita Prefecture Regional Vitality Improvement Area Specific Business Facility Development Promotion Project)
2.  The number of full-time employees at the specific business facility must increase by 5 people (1 small and medium-sized business owner) or more
   (in the case of relocation, the majority of employees must be transferees from businesses in the 23 wards of Tokyo within one year from the date the specific business facility is put into use for business purposes, and thereafter, the number must be 1/4 or more during the plan period)

Note: Permanent employment refers to employment in which the scheduled working hours per week are 20 hours or more and the employment period is not set or is renewed repeatedly.

When relocating or expanding head office functions, you can apply for a "Plan for the Development of Specific Business Facilities in Regional Vitality Improvement Areas, etc." to the prefecture at the planning stage (before work begins) and receive preferential treatment such as tax exemptions and debt guarantees by receiving approval.

Special local tax treatment (plans must be approved by March 31, 2026)

Eligible: Depreciable assets used for business purposes such as land and specific business facilities
Acquisition price requirements: Total amount must be 38 million yen or more (SMEs, etc.: 19 million yen)