Up to 2 Million JPY! (Approx. 18,500 USD)! How to Apply for the May 1st, “Subsidy Program for Sustaining Businesses” (持続化給付金)

May 11th 2020

In order to support businesses badly affected by the spread of coronavirus, especially those who have voluntarily refrained from operating etc., on May 1st the Subsidy Program for Sustaining Businesses (持続化給付金) started up, which can provide up to 2 million JPY (18,500USD) for small and medium-sized business and up to 1 million JPY (9,250USD) for individual business operators.

Many visitors to Chefs Wonderland run restaurants or general companies in Japan, so we will explain in detail how to apply for the subsidy program.

What Types of Businesses are Eligible?

Benefits are available to all small and medium-sized businesses, including restaurants and those run by individual business operators. The difference between the two is simply whether the business has been registered and is operating as a company (Kaisha, 会社), or as an individual business operator (Kojin-Jigyonushi, 個人事業主).

There are two conditions for small and medium-sized businesses or individual business operators to be eligible for benefits.

Subsidy Program for Sustaining Businesses in Japan

1.

From January 2020, there must be a month selected (hereinafter referred to as the “target month”) in which, due to the spread of the coronavirus, the business has faced a decrease in sales by 50% compared to the same month of the previous year.

* For the target month, select one month from January to December 2020, when the business faced a decrease in sales by 50% or more compared to the same month of the previous year.

2.

The business had revenue (sales) previous to 2019, and there is an intention to carry on with the business in the future.

Example of a Benefit Calculation

Let’s use the example of a restaurant whose business year was January to December 2019. Suppose due to the coronavirus, sales have been sluggish since March 2020, and have dropped to 300,000JPY in April.

Monthly business revenue in April of the last business year (FY2019): 1 million JPY
Monthly business revenue for April 2020: 300,000 JPY.

As the monthly sales decreased from 1 million to 300,000JPY, that is, a 70% decrease in sales, there is an appropriate “target month” in which the business revenue decreased by 50% or more compared to the same month of the previous year, therefore, this business meets the conditions.

Annual business revenue for the last business year (FY2019): 12 million JPY
Sales in the target month (April 2020): 300,000 JPY

12 million JPY – 300,000 JPY x 12 months = 8.4 million JPY

Sales in April were 300,000 JPY, so if the current sales continue for one year, 300,000 × 12 months will equal 3.6 million JPY, which is 8.4 million JPY less than the previous fiscal year (FY2019).

In such cases, the government will grant up to 2 million JPY for small and medium-sized business and up to 1 million JPY for individual business operators.

How to Apply for the Subsidy?

You can apply online through the website below, but as of May 2nd, all the information on the website was written in Japanese. If you can’t read Japanese, please ask someone who can read Japanese for help with this.

Alternately, you can ask a certified administrative procedures specialist (行政書士 Gyoseishoshi) or certified tax accountant (税理士 Zeirishi) who is familiar with these kinds of benefit applications to do to it for a fee.

Usually fees are about 5-10 % of the benefits if the application is successful.

jizokuka-kyufu

The official website of the Subsidy Program for Sustaining Businesses (持続化給付金-jizokuka-kyufukin)

What Documents are Needed?

The necessary documents are as follows.

For small and medium-sized company owners
Required Documents for small-middle sized companies for Jizokuka-Kyufukin
2.) For individual business operators
Required Documents for individual business owners for Jizokuka-Kyufukin

How Long Do You Need to wait?

If there are no problems with the application, the benefits will normally be paid to your bank account within about two weeks.

There are 26,000 foreigners staying in Japan with Business Owners visas. We’re not sure the number of foreigners registered as individual business operators, but a considerable number of people are doing business while paying taxes in Japan. There are many people who don’t yet know about this benefit program, so be sure to tell your friends.

Feel free to ask us contact about this program if you need a help.

What would you like to know more?

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