Financial Incentives Offered in Kyushu

Tax Incentive

Region Incentive Coal mining areas(article 6) Low - development areas Industry - introducing agricultural areas High - Technology industrial complexes areas Industry relocation law (induction area) Special depreciation on corporate and income tax (first year) * * * * - Exemption from enterprise tax (3 years) * * * - - Exemption from real estate acquisition tax * * * - - Exemption from fixed asset tax (3 years) * * * * * Exemption from special real estate tax * * * * * Special tax treatment for exchange of special asset * * * - -

Only for foreign enterprises - Extension of the carry - over period for losses

Subsidies Industrial relocation promotion subsidy [Depending on the location, the maximum subsidy is 7,500 yen per square meter of floor space (maximum 150 million yen)] Local government subsidies [Depending on the local government, the amount of facility investment and the number of newly hired for full-time positions, the maximum subsidy is 1,500 million yen. In general maximum amount is about 300 ~ 500 million yen.]

Low-Interest Loans (Only for foreign companies, foreign-owned companies) Promotion of foreign direct investment in Japan loan program [Loan Amount - 50% of investment categorized herein Interest Rate - 2.5%(fixed interest rate) Loan Period - From one year up to about 25 years] (All companies) Facilities for imported products loan program [Eligible companies - Importers, wholesalers or retailers of imported goods. Loan Amount - 50% of investment categorized herein(about 60% in a Foreign Access Zone) Interest Rate - 2.5%(fixed interest rate) Loan Period - From one year up to about 25 years] Promotion of international joint R&D projects loan program [Eligible companies - Foreign companies or foreign-owned companies and Japanese companies which is engaged in joint R&D projects. Loan Amount - 40% of investment categorized herein Interest Rate - 2.5%(fixed interest rate) Loan Period - From one year up to about 25 years] Local government loan program [Depending on the local government, the amount of facility investment and the number of newly hired for full - time positions, the maximum loan is 500 million yen. In general maximum amount is about 200 ~ 300 million yen. Interest Rate - about 1.7 ~ 2.0% (depending on the local government) Loan Period - Up to about 10 ~ 15 years]