Investment Guide
Subsidies
Aichi Prefecture Business Facility Investment Subsidy for Cutting-edge Sectors of the 21st Century
Purpose | To support investments in large plants and research institutes in Japan’s top-tier cutting-edge sectors |
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Eligible Business Sectors | Aerospace, environment and new energy, information and communication, health and healthy aging, advanced materials, nanotechnology and biotechnology |
Subsidy Rate (maximum amount) |
Large enterprises: 8% (10 billion yen) Medium and small sized enterprises: 10% (10 billion yen) (For investments of up to 30 billion yen: 1 billion yen) |
Remarks | An application for a business license must be submitted at least 30 days before the start of construction. In addition to the above, there are several other eligibility requirements. |
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Web Link to Aichi Prefecture Business Facility Investment Subsidy for Cutting-edge Sectors of the 21st Century(in Japanese)
https://www.pref.aichi.jp/soshiki/ricchitsusho/yuuguu-ken.html#21seiki
Aichi Prefecture Business Facility Investment Subsidy for Promising Industries (Type B)
Purpose | To support investments from companies engaged in the manufacturing and research of products and materials which contribute to strengthening the competitiveness of industries in Aichi |
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Eligible Business Sectors | Products and components recognized for their potential for creating new markets, advancing technologies, and achieving high growth (contributing to enhancing competitiveness) in the automobile, aerospace, robotics, environmental and new energy, information and communication, and healthy longevity sectors |
Subsidy Rate (maximum amount) |
Large enterprises: 8% (1 billion yen) Medium and small sized enterprises: 10% (1 billion yen) |
Remarks | An application for a business license must be submitted at least 30 days before the start of construction. In addition to the above, there are several other eligibility requirements. |
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Web Link to Aichi Prefecture Business Facility Investment Subsidy for Promising Industries (Type B)(in Japanese)
https://www.pref.aichi.jp/soshiki/ricchitsusho/yuuguu-ken.html#shinnaichi
Aichi Prefecture Business Facility Investment Subsidy for Promising Industries (Type C)
Purpose | To support IT (software) companies which start business in Aichi for the first time or further expand existing business across Aichi, and startups that move out of STATION Ai to another location |
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Eligible Business Sectors |
① IT companies which are engaged in the following businesses ・Software development ・Information processing and provision (excluding research services) ・Internet related services ② Startups that move out of STATION Ai to another location |
Subsidy Rate (maximum amount) |
Businesses beginning operations in Aichi for the first time: 50% and additional personnel allowance [500,000 yen per employee] (First year: 10 million yen, Second and third years: 3.5 million yen each) Further expansion, and startups relocating from STATION Ai: 30% (First year: 7 million yen, Second year: 3 million yen) |
Remarks | An application for a business license must be submitted at least 30 days before the office lease begins. In addition to the above, there are several other eligibility requirements. |
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Web Link to Aichi Prefecture Business Facility Investment Subsidy for Promising Industries (Type C)(in Japanese)
https://www.pref.aichi.jp/soshiki/ricchitsusho/yuuguu-ken.html#shinnaichi
Aichi Prefecture Research and Development Subsidy
Purpose | To support research and development as well as demonstration experiments conducted by companies and other organizations in business sectors with high growth potential |
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Eligible Business Sectors | Next-generation vehicles, aerospace, environment and new energy, health and life-span extension, information and communication, robots, digital (AI), carbon neutrality, etc. |
Subsidy Rates |
Large companies: One third Medium sized companies: One Half Small and medium sized companies: Two thirds |
Maximum amount |
Digital(AI)/Carbon Neutrality Category, General Category, Demonstration Projects: 100 million yen Startup Trial Category : 10 million yen |
Remarks | In addition to the above, there are requirements for eligible expenses and other criteria. |
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Web Link to Aichi Prefecture Research and Development Subsidy (in Japanese)
https://www.pref.aichi.jp/site/shin-aichi/about.html
Tax Incentives
Business Facility Investment Tax Incentive (Real Estate Acquisition Tax Exemption and Reduction)
Eligible Business Sectors | Manufacturing sector of the aerospace industry | Manufacturing sectors of other industries | |
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Eligible Districts |
(1) Districts of the Special Zone to Create Asia No. 1 Aerospace Industrial Cluster or (2) Districts designated by the Governor of Aichi upon request from the mayor of the municipality where the applicable area is located |
Districts designated by the prefectural governor upon request by mayors of municipalities | |
Eligible Property | Buildings | Newly constructed buildings for eligible business purposes | Newly constructed buildings on newly acquired or leased land for the purpose of the relevant project |
Land | Land acquired during the target period, on which buildings were newly constructed within three years after the date of acqusition | ||
Amount to Be Reduced | Total tax amount |
Large companies: Amount equivalent to half (50%) of total tax amount Small and medium-sized companies: Amount equivalent to three-fourths (75%) of total tax amount |
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Web Link to Business Facility Investment Tax Incentive (Real Estate Acquisition Tax Exemption and Reduction)(in Japanese)
https://www.pref.aichi.jp/soshiki/ricchitsusho/yuuguu-ken.html#zeisei
Industrial Sites (Land Owned by the Aichi Public Enterprise Bureau)
The Aichi Public Enterprise Bureau provides optimal sites that meet the needs of companies, as well as offering several preferential systems for the acquisition of industrial land.
Long-term Installment Plan for Repayment of Land Acquisition Fees
Installments Period | Within 10 years (to be paid in 10 or fewer installments including the first payment) |
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Amount of the First Payment | 10% or more of the total price agreed (to be paid within 15 days from the day following the date on which the agreement is made) |
Division of the Installments | Equal annual installments to cover the amount that remains after deducting the first payment from the total amount agreed to be paid (due each year by the anniversary date of the day the agreement was originally made) |
Interest Rate on the Installments |
The Aichi Prefectural Bond interest rate (10-year bond) is applied (fixed interest rate) *Please contact the Aichi Public Enterprise Bureau for the applicable interest rate. |
Remarks |
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Web Link to Long-term Installment Plan for Repayment of Land Acquisition Fees (in Japanese)
https://www.pref.aichi.jp/youchi/yuuguu/index.html
Leasing System (not applicable to some districts)
Land Use | Industrial, logistics, and commercial land | ||
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Type of Land Leasehold | Fixed-term land lease for business-use land | ||
Overview of the Land Lease System |
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Laws and Regulations | Act on Land and Building Leases, Article 23, Section 2 | ||
Leasing Period | 10-20 years | ||
Contracting Method | The contract must be notarized. (The borrower is responsible for the cost of preparation.) | ||
Annual Leasing Fees | Coastal-area land | (selling price x 3%) + An amount comparable to the fixed asset tax | |
Chubu “Rinku” coastal area covering part of the artificial island hosting Chubu Centrair International Airport and its vicinity | (selling price x 4.2%) + An amount comparable to the fixed asset tax | ||
However, during the building construction period, the land lease fee will be reduced by half for a maximum of six months. | |||
Revision of Leasing Fees |
Leasing fees are subject to revision every three years due to changes in social and economic conditions. (Except for the Chubu “Rinku” coastal area) |
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Payment Method |
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Deposit | Amount | Monthly leasing fee x 12 to 24 months | |
Payment Method | To be paid by the day before the start of the leasehold term | ||
Provision of Contract | During or upon expiration of the lease term, the land shall be sold at market value (appraised value) upon request of the borrower. | ||
Remarks |
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Web Link to Leasing System (not applicable to some districts)(in Japanese)
https://www.pref.aichi.jp/youchi/yuuguu/index.html