Call me: +81-3-3536-5691
Japan’s subsidy package aimed at sole proprietorships, medium, and small-sized businesses

Japan’s subsidy package aimed at sole proprietorships, medium, and small-sized businesses

Business operator suffering from Covid-19 may acquire subsidy of one or two million yen from the  government of Japan

Summary
Sole Proprietorship can receive subsidy up to one million yen from Japanese government
Small and Medium-sized company can receive subsidy up to two million yen from government

How to calculate amount of subsidy receivable?

Assumed that you are operating business in Japan.

Due to corona virus, sales amount (Not profit) of your business in either of month of 2020 is less than 50% of that of 2019.

EX. (In the case of Blue return tax payer=Aoiro shinkoku)
Sales amount of January 2019 : 500,000 yen
Sales amount of February 2019 : 500,000 yen
Sales amount of March 2019 : 500,000 yen

Sales amount of January 2020 : 500,000 yen (You can prove it by accounting book etc.)
Sales amount of February 2020 : 200,000 yen
Sales amount of March 2020 : 500,000 yen

In this case you can say sales amount of your business in February 2020 is less than 50% of that of 2019.

(In the case of corporation, it is determined based on its fiscal year. Not based on calendar year)

Assumed that your annual sales amount in 2019 was 6 million yen. (You can prove it by tax filing paper etc.)

So, 6 million yen – (200,000 yen × 12 months) = 3.6 million yen.

If you can receive 3.6 million yen, it was nice. 

However in the case you are operating your business as Sole Proprietorship (without incorporation of company) , you can receive up to one million yen.

In the case you are operating your business as Small and Medium-sized companies, you can receive up to two million yen.

You need to have business income in 2019.
(If you are renting out a real estate as individual, your income is not Business Income basically. It is “Real Estate Income”.
Even if your real estate business is 事業的規模, you are not qualified for this subsidy.
On the other hand, if you are renting out a real estate as a Company, income of your company is Business Income. So your company can apply for this subsidy)
So, if you have started her business in 2020, you can not use this subsidy.
(However Government of Japan will change this arrangement)

If you have decided to close your business in 2020, you can not receive this subsidy.

In the case of adult entertainment business, you can not use this subsidy.

How to prove reduction of your sales amount to apply for this subsidy?

You can provide financial statement of your business (accounting book etc.) to prove your monthly sales amount of 2020.

And as for last years annual sales amount, you need to submit duplicate copy of tax filing paper (You submitted in March 2020)

On tax filing paper, monthly sales amount should be clarified. Otherwise, you need to receive seal of tax accountant.

You can make accounting book of 2020 that clarifies sales amount and your tax accountant needs to put her seal on it.

If you did not submit tax filing in March 2020, but submitted it in March 2019, you can use the document.

If you have started your business in 2020, you can not apply for this subsidy.
(However Government of Japan may change this arrangement)

Other necessary documents

Soft copy of your bank book to receive subsidy

In the case you are operationg your business by company name, if you do not have bank account by company name, bank account of representative director is acceptable.

ID (Resident card etc.) of business operator

Company registration number issued by tax office (In the case of legal entity)

How can you apply for this subsidy ?

You can apply for it via internet.

Tangible application papers are not necessary.
You can take picture of necessary documents and send them to authority via internet.

Though this is subsidy, it may be levied by Japanese government.

Period of this application for subsidy

You can apply during 1st May 2020 to 15th January 2021.
(Withing budget of Japanese government)

You will receive money in May 2020 at the earliest.

Once you have received it, there is no limitation on purpose of usage of money.

You can use the money to purchase a food at shop or payment of salary to your employees.
Whatever is fine.

In the case you started your business in 2019 without incorporation of company and you converted your business entity and started your business by 1st, April 2020 as a company, you can apply for this subsidy as company and receive 2 million yen.

If you are a salaried worker and operating a side business and filed tax return as business income (Jigyoshotoku), you will be able to apply for this subsidy.

Leave a Reply