Reissuance of a state of emergency and 2nd Cash Handout of Japan
In the case you are operating a business in Japan and received impact owing to reissuance of state of emergency, you can read through this post.
Even if you are in Okinawa where state of emergency was not reissued, there are possibilities that you can apply for this benefit.
In order to apply for this Cash Handout, sales amount should be decreased due to state of emergency by 50% or more.
How much amount you can receive this benefit ?
Assumed that Sales amount in 2020 or 2019
January 900,000 yen
February 1 million yen
March 800,000 yen
Sales amount in 2021
January 1 million yen
February 400,000 yen (owing to a State of Emergency. Decreased month)
March 1 million yen
In this case you can say sales amount in February in 2021 was decreased by 50% or more compared to 2020 or 2019.
1 million + 400,000 + 1 million = 2.4 million yen (sales amount in Jan, Feb, March 2019 or 2020)
400,000 yen (Decreased month) * 3 months = 1.2 million yen.
2.4 million – 1.2 million = 1.2 million yen.
However you can not receive 1.2 million yen.
Maximum amount of benefit is 600,000 yen (in the case of company) or 300,000 yen (in the case of sole proprietor).
Even if you are operating several shops, one legal entity can receive up to 600,000 yen (in the case of company)
Even if you are operating several shops, one person can receive up to 300,000 yen (in the case of sole proprietor).
Who can receive this benefit ?
Government of Japan reissued State of emergency and extended it in some areas.
Owing to a State of Emergency, the number of persons who go out decreased and it influenced wide range of business operators (even if they are located in area where state of emergency was not issued).
Owing to a State of Emergency, restaurant business operators are suffered from negative impact.
(even if they are located in area where state of emergency is not issued)
And business operators who sale food to such restaurant have also receive some negative impact.
Moreover, a state of emergency caused some impact toward retailer shop and hotel business operators, taxi driver (even if they are located in area where a State of Emergency is NOT issued. Because their customers come from Tokyo etc.).
So government of Japan announced that wide range of business operators can apply for this additional Cash Handout.
If a person sales merchandise (ex. chopsticks) to a restaurant that is in state of emergency area or not (directly or indirectly), it can apply for this Cash Handout.
(as far as there is negative impact of a state of emergency)
If a person maintains equipment of a restaurant that is in state of emergency area or not for business, it can apply for this Cash Handout.
(as far as there is negative impact of a state of emergency)
Assumed that a person is operating language school in Okinawa.
She is not located in area where state of emergency is issued.
Her customers are only neighboring persons.
However some persons hesitate to go out to come to her school due to covid-19.
In that case she may not be able to apply for this Cash Handout.
Assumed that you are operating a restaurant business in Tokyo and received business suspension request (Kyugyo Yosei).
Then you suspended your business or you did not accept the request in spite of such request.
In both cases, you can not apply for this Benefit.
Because if you suspended your business according to such request, you can receive benefit (Cooperation money) from Tokyo government.
Even if you did not suspend your business and could not receive money, you can not apply for this Benefit.
Assumed that a person (Mr.R) is operating restaurant business in Tokyo where state of emergency was issued.
Mr.R suspended his business according to Business suspension request.
You have had sold sausage to Mr.R’s restaurant continuously.
And because of suspension of Mr.R’s business, sale amount of your business decreased by 50% or more.
In this case you will be able to apply for this Subsidy.(Named Ichiji Shienkin)
Then when you sent sausage to Mr.R’s restaurant, you used logistics company operated by Mr.L.
And when you (Mr.A) made sausage, you purchased food material from Mr.W’s shop.
In this case, both of Mr.L and Mr.W do not have direct transaction with Mr.R’s restaurant.
However as far as sales amount of their business decreased by 50% or more, they will be able to apply for this subsidy (Named IchijiShienkin).
Assumed that you are operating a travel agency, museum, hotel, clothing store, wedding ceremony place etc.
You are operating your business where state of emergency is not issued.
However more than 50% of your customers come from area where state of emergency was issued.
And such customers did not come to your shop and sales amount of your business decreased by 50% or more.
In this case, you will be able to apply for this Subsidy (Named いちじしえんきん).
Necessary documents to be kept
Even after you apply for this subsidy, you need to preserve some documents that prove you applied for this subsidy appropriately.
For instance, in the case of Mr. W mentioned above.
Mr.W needs to keep document that proves Mr.W has transacted with Mr. A.
And Mr.W also needs to keep document that proves Mr.A has transaction with Mr.R.
So it is very hard hurdle.
Assumed that you were operating hotel business where state of emergency was not issued.
But most of customers came from area where state of emergency was issued before pandemic.
However such persons did not come to your hotel and sales amount decreased by 50% or more.
So you hope to apply for this Ichiji Shienkin Subsidy.
In this case you need to prepare following evidence.
Documents that proves you had customers continuously and they came from area where state of emergency was issued.
Though you do not need to submit these evidence at the time of application for subsidy, you need to prepare and keep these evidences for seven years.
Flow of application process
In the case of company, it needs to prepare tax filing paper for fiscal year of 2018 and 2019 and 2020.
(It needs to included Janu, Feb, March of 2019 and 2020. With receipt of Tax office).
And you need to receive confirmation with Registration Confirmation Organization (Toroku Kakunin Kikan=登録確認機関).
The Toroku Kakunin Kikan will confirm if you are operating your business actually and you have understood requirements to receive this Benefit etc. and issue you registration number.
In other subsidy, many persons received subsidy illegally. So government of Japan prepared this kind of complicated process.
So at first you need to receive interview with 登録確認機関.
You need to find 登録確認機関(とうろくかくにんきかん). So if your familiar tax accountant knows this process, he may register as 登録確認機関 with government.
If your familiar tax accountant is too busy to become 登録確認機関, you will look for other person or organization.
This administrative office who handles application for this subsidy will establish its 登録確認機関 in end of March.
So most of persons will wait for end of March. Otherwise, you will need to outlay some money to 登録確認機関.
If you have found 登録確認機関, you need to make appointment with them. And they will ask you only formal questions.
ex. “Do you have understood requirement, qualification for this subsidy and prepared necessary evidence ?”
After you receive confirmation with 登録確認機関, you can apply for this benefit.
Application will be submitted from March to end of May 2021.
In Japanese language, name of this benefit is “Ichiji Shienkin一時支援金”