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2020/05/22 Update


A comprehensive list of financial aid for business owners in Japan amid COVID-19.

Subsidy program for sustaining business (持続化給付金) for small and medium size enterprises (SMEs)

1. What is the program for sustaining business?
This program is to give an amount of relief package up to 2 million yen (approximately $18,000) to companies or up to 1 million yen to individual businesses (approximately $9,000) which are facing severe conditions as a result of the coronavirus pandemic.
The benefits can be used widely in all areas of the business to support the continuation of the business and provide sustenance for recovery whose sales have decreased by 50% or more compared to the same month in the previous year.

2. Who is eligible?
(2.1) Companies, including medical corporations, agricultural corporations, NPOs and individual business etc. that meet one of two the following criteria:
・The amount of capital or total investment must be less than 1 billion yen (approximately $9 million).
・In case its capital or total investment is not specified, the number of regular employees must be less than 2,000.

(2.2) Companies that had revenue from 2019 and are willing to continue the business in the future.

(2.3) Companies whose business income decreased more than 50% from January 2020 onward compared to the same month of the previous year due to the disease outbreak.

*Note: Businesses that had once applied to the program can not apply again.

3. Application period.
・Started from May 1, 2020 to January 15, 2021.
・Process time: usually 2 weeks.
・The handout is wired to the applicant’s registered bank account.

4. How to apply?
Visit the link (Japanese only) HERE

Postponement of national tax payment (国税・地方税徴収の猶予制度の特例)

1. What is the program for postponement of national tax payment?
This program allows businesses which are facing severe conditions as a result of calamities ors disease epidemics to defer their payment of tax without collaterals or delinquency charges to up to 1 year since their application at tax offices.

2. Who is eligible?
Companies whose income in any period of time (one month or more) after February 2020 decreased more than 20% compared to the same period of the previous year due to the impact of the coronavirus that led to difficulties in paying national tax.

3. How to apply?
・Download application form from HERE: Application form and submit to the taxation office near your place.

* List of taxation offices can be searched HERE: List of taxation offices in Japan

Reduction of commercial real estate taxations for SMEs (中小事業者等が所有する事業用家屋及び設備等に係る固定資産税等の軽減措置).

1. What is the program for reduction of commercial real estate taxes?
This program is to reduce fixed asset tax and city planning tax in the fiscal year 2021 for the SMes to zero or one-half, depending on the extent of the drop in business income.

2. Who is eligible?
Companies whose business income in any consecutive months from February to October 2020 has decreased more than 30% compared to the same period of the previous year.
➞ From 30% to 50% income loss: 100% (reduced tax rate)
➞ More than 50% income loss: 50% (reduced tax rate)

3. Application period (will be updated).
Application is planned to start from mid-May.

Source: Source:Ministry of Health, Labour and Welfare