Certification of Advanced Equipment Introduction Plan Based on the Small and Medium-Sized Enterprise Management Enhancement Act
[Important Notes on System Changes Due to the 2023 Tax Reform]
Due to the 2023 tax reform, the requirements and details of the Property Tax special provisions have been revised. Additionally, the formats of the Application Form and other documents have changed in accordance with the amendments to the regulations related to the introduction of advanced equipment under the Small and Medium-sized Enterprises Management Enhancement Act, effective April 1, 2023.
Note: Please be aware that applications using the old format are not accepted.
About the Introduction Plan for Advanced Equipment
The "Advanced Equipment Introduction Plan" is a plan for small and medium-sized enterprises as stipulated by the Small and Medium-Sized Enterprise Management Strengthening Act, aimed at improving labor productivity through capital investment. Inagi City received approval from the national government for the "Basic Plan for Promotion of Introduction" on April 1, 2023, and is certifying the "Advanced Equipment Introduction Plans" formulated by small and medium-sized enterprises within the city.
If certified, you can receive tax and financial support as follows.
Support Details
(1) Tax System Support (Property Tax Special Provisions for Depreciable Assets Contributing to Productivity Improvement)
Based on the "Advanced Equipment Introduction Plan" certified by Inagi City, small and medium-sized enterprises that introduce new equipment contributing to labor productivity improvement within the application period can receive the following tax measures for Property Tax on that equipment.
Note: The application period is from April 1, 2023, to March 31, 2025 (2 years).
| Item | Contents |
|---|---|
| Period and Special Rate | Special rate 1/2 for 3 years |
| Period / Special Rate (In case of wage increase declaration) |
|
| Equipment Requirements | Facilities essential for achieving the investment objectives stated in the investment plan, which is expected to have an average annual return on investment of 5% or more. |
| Target Equipment Note: Limited to those subject to taxation as depreciable assets |
|
(2) Financial Support
Small and medium-sized enterprises can receive additional guarantees separate from the usual framework of ordinary insurance through the credit guarantee association when obtaining loans from private financial institutions for the implementation of the "Advanced Equipment Introduction Plan" certified by Inagi City. If you are considering utilizing this, please consult with the relevant organizations before applying for certification of the "Advanced Equipment Introduction Plan."
The relevant organizations are as follows.
Tokyo Credit Guarantee Association (Phone) Hachioji Branch 042-646-2511
Note: For more information on the Small and Medium-sized Enterprises Management Enhancement Act, please visit the following Small and Medium-sized Enterprises Agency website. Also, for information on the procedures to receive special measures for Property Tax, please see "Procedures to Receive Special Measures for Property Tax" at the bottom of the page.
Certification of Advanced Equipment Introduction Plan
In Inagi City, based on the "Small and Medium-sized Enterprises Management Enhancement Act," we accept and review certification applications for the "Advanced Equipment Introduction Plan" formulated by small and medium-sized business operators with offices in the city to improve labor productivity to a certain extent. Certification will be granted if it aligns with Inagi City's "Basic Promotion Plan for Introduction."
Basic Plan for Promoting Introduction in Inagi City
Eligible Small and Medium Enterprises
The scale of small and medium-sized enterprises that can receive certification is as follows in the table below.
| Industry Classification | Amount of capital or total investment | Number of employees regularly used |
|---|---|---|
| Manufacturing and Others (Note: 1) | 300 million yen or less | Less than 300 people |
| Wholesale Industry | Under 100 million yen | Less than 100 people |
| Retail Industry | Under 50 million yen | 50 or fewer people |
| Service Industry | Under 50 million yen | Less than 100 people |
| Rubber Product Manufacturing Industry (Note: 2) | 300 million yen or less | Less than 900 people |
| Software Industry or Information Processing Services | 300 million yen or less | Less than 300 people |
| Inn Industry | Under 50 million yen | Less than 200 people |
- Note 1: "Manufacturing and others" refers to industries other than those from "Wholesale" to "Inn business" mentioned above.
- Note 2: Excludes the manufacturing of tires and tubes for automobiles or aircraft, as well as the manufacturing of industrial belts.
In addition, corporate unions, cooperative unions, and business cooperatives can also receive certification for advanced equipment introduction plans.
Contents of the Advanced Equipment Introduction Plan
To receive certification from Inagi City, eligible small and medium-sized enterprises must formulate a "Advanced Equipment Introduction Plan" to improve labor productivity by an average of 3% or more per year compared to the base year (the most recent fiscal year-end) within the planning period.
The main requirements are as shown in the table below.
| Main Requirements | Content |
|---|---|
| Planning Period | 3 years, 4 years, or 5 years from plan approval |
| Labor Productivity | During the planning period, labor productivity is expected to improve by an average of 3% or more compared to the base year (the most recent fiscal year-end) . [Calculation Formula] (Operating profit + Labor costs + Depreciation) ÷ Labor input (Number of workers or Number of workers × Annual working hours per person) |
| Types of Advanced Equipment, etc. | The following equipment directly used for production, sales activities, etc., necessary for improving labor productivity [Types of depreciable assets] Machinery and equipment, measuring tools and inspection tools, instruments and equipment, building auxiliary facilities, software |
| Plan Details | It conforms to the national promotion guidelines and the basic promotion plan of Inagi City. It is expected that the introduction of advanced equipment will be carried out smoothly and reliably. It is a plan that has undergone prior confirmation by certified management innovation support organizations (financial institutions, Commerce and Industry Association, professionals, etc.). |
Guidelines for Formulating Advanced Equipment Introduction Plans
Please refer to the following guidelines when formulating the introduction plan for advanced equipment, etc.
Application for Certification of Advanced Equipment Introduction Plan
Flow of Certification for Advanced Equipment Introduction Plan
The process for the certification of advanced equipment introduction plans is as follows.
- Create a plan for the introduction of advanced equipment, and request prior confirmation from support organizations for management innovation (financial institutions, Commerce and Industry Association, professionals, etc.)
- If the content is appropriate, receive the issuance of a "confirmation letter" from the management innovation support organization.
- Attach necessary documents such as the "Confirmation Letter" and apply to Inagi City for the introduction plan of advanced equipment.
- If the content is applicable, receive a "Certification Notification" from the Mayor of Inagi City
- After the issuance of the 'Certification Notification', acquire equipment based on the introduced plan for advanced equipment that has received certification.
- Note: It is essential to acquire advanced equipment after the certification of the "Advanced Equipment Introduction Plan," so please pay attention to the timing of acquisition.
- Note: When formulating the "Advanced Equipment Introduction Plan", please refer to the above "Guidelines for Formulating the Advanced Equipment Introduction Plan".
Confirmation of Management Innovation Support Organizations
When applying for the "Advanced Equipment Introduction Plan," it is essential to receive prior confirmation and the issuance of a "Confirmation Document" from a management innovation support organization (financial institutions, Commerce and Industry Association, professionals, etc.) that the introduction of equipment directly used for production and sales activities necessary for improving labor productivity is expected to increase labor productivity by an average of 3% or more per year.
You can check the management innovation support organizations in the Kanto region from the following Kanto Bureau of Economy, Trade and Industry website.
Documents for Submission of Certification Application
When applying for certification, please submit one copy of the following application documents.
(1) Application Form, Advanced Equipment Introduction Plan (Note: 1)
(2) Pre-confirmation Document by Certified Management Innovation Support Organization (Copy)
(3) Consent Form for Viewing and Copying Municipal Tax Assessment and Payment Status
(4) Pledge Regarding Exclusion of Organized Crime Groups
Note: 1 Defined by the Ministry of Economy, Trade and Industry's Special Measures Act for Productivity Improvement Enforcement Regulations.
Documents Required for Special Measures for Property Tax
In addition to the above (1) to (4), the following documents are required:
(5) Confirmation letter regarding the investment plan issued by the certified management innovation support organization
When introducing leased equipment and receiving reduction measures
In cases where the user of the equipment and the burden bearer of the Property Tax are different (including cases where it is a transfer of ownership lease and the leasing company bears the Property Tax), in addition to the above (1) to (5), the following documents are required.
(6) Copy of the lease contract estimate
(7) Copy of the reduction calculation document confirmed by the Leasing Business Association
If you want to express a wage increase policy (to receive a 1/3 reduction in Property Tax)
In addition to the above (1) to (5) (for leases, (1) to (7)), the following documents are required.
(9) A document certifying that the policy for wage increases has been communicated to employees.
- Note: The wage increase policy can only be positioned within the plan at the time of new application.
- Note: It is not possible to add a wage increase policy to the plan at the time of the change application.
Various Application Forms
- Application Form, Advanced Equipment Introduction Plan (Word 26.7KB)
- Pre-confirmation document by certified management innovation support organizations (Word 22.0KB)
- Viewing and Copying Consent Form for Municipal Tax Assessment and Payment Status (Word 14.9KB)
- Pledge Regarding Exclusion of Organized Crime Groups (Word 14.7KB)
- Confirmation Document Regarding Investment Plans for Advanced Equipment, etc. (Word 33.8KB)
- Document certifying the declaration of wage increase policy to employees (Word 19.8KB)
- (In case of a change application) Certification Application Form, Advanced Equipment Introduction Plan (Word 23.4KB)
Documents Required for Application Changes
(1) (In case of a change application) Certification Application Form, Advanced Equipment Introduction Plan
- Note: Please create it in the form of a revision to the certified "Advanced Equipment Introduction Plan".
- Note: For the changes and additions, please underline the parts that have been modified for clarity.
(2) Preliminary confirmation letter by certified management innovation support organizations
(3) A copy of the old advanced equipment introduction plan set (a copy of the one returned after certification)
- Note: Please indicate in the plan document that this is the plan before the changes, using handwritten notes or similar methods.
If it includes equipment subject to tax measures
(4) Confirmation document regarding the investment plan issued by the certified management innovation support organization
(5) Lease contract estimate (copy)
(6) Reduced calculation document confirmed by the Lease Business Association (copy)
Application Method
Reception Hours
From 8:30 AM to 5:15 PM
Application Method
Mail or Bring In
Submission Destination
Inagi City Hall Department of Industry, Culture, and Sports Economic Affairs Section Commerce Division
Points to Note
- It is essential to acquire advanced equipment after the certification of the "Advanced Equipment Introduction Plan." Please note that there are no exceptions that allow for plan applications to be approved after the acquisition of equipment.
- If there are no deficiencies in the submitted documents, the certificate will be issued in approximately 1 to 2 weeks.
- After the plan is approved, we may conduct surveys to understand the progress of the introduction plan for advanced equipment and other related matters.
- If there are changes to the plan (such as changes to equipment or additional acquisitions), it is necessary to obtain approval for the plan change. Please contact the Economic Affairs Section, Commerce and Industry Division, Department of Industry, Culture, and Sports, Inagi City Hall.
- Regarding financial support, the loan and guarantee examinations by financial institutions and credit guarantee associations are conducted separately from the certification examination of the advanced equipment introduction plan by the city. Even if you obtain certification for the advanced equipment introduction plan from the city, there may be cases where you cannot receive loans or guarantees.
Procedures for Receiving Special Measures for Property Tax
Documents Required for Special Measures for Property Tax
- Copy of the Certificate
- Copy of the certified advanced equipment introduction plan
Contact Information for Special Measures Regarding Property Tax
Inagi City Hall Department of Citizen Affairs Taxation Division Housing Section
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Inquiries about this page
Inagi City Department of Industry, Culture, and Sports Economic Affairs Section
2111 Higashi-Naganuma, Inagi City, Tokyo 206-8601
Phone number: 042-378-2111 Fax number: 042-377-4781
Contact Inagi City Department of Industry, Culture, and Sports Economic Affairs Section