COVID-19 Crisis: A New Rent Subsidy in Japan For Business Owners and Freelancers

[Updated on 7th of July]

For the past month, I have been posting about the different subsidies that the Japanese government is offering to people who are affected by the pandemic. Recently, a new one has been announced and it’s a financial aid to help pay the rental fee of shops, offices, or any establishment leased by business owners and freelancers. 

For companies, they can claim up to 6 million yen.

For the self-employed or freelancers, they can get up to 3 million yen.

Who are eligible for this subsidy?

Small business owners, self employed, or freelancers who rent a space for their business — e.g. shop, office, school, learning center, restaurant.

Update: If your home is also your work space, you can also apply.

What are the criteria?

• Income dropped by more than 50% in one of the months between May 2020 to December 2020 compared to the same month of last year

or

• Income dropped by more than 30% in 3 contiguous months between May 2020 to December 2020 compared to the same contiguous months of last year. (Ex. May, June, July)

Another criterion is if you are self-employed or a freelancer, you should have declared your tax last year using the blue return system.

Update: You can apply whether you used the blue form system or the white form system when you filed your tax return.

How is the subsidy computed?

For self-employed or freelancers:

If your rent fee is less than ¥375,000, the subsidy will cover two-third (2/3) of the amount.

If it is between ¥375,001 to ￥1,125,000, the subsidy will cover one-third (1/3) of the amount.

This will then be multiplied by 6.

For example, if your rent is ¥300,000 per month, then:

300,000 yen × 2/3 =200,000 yen

200,000 yen × 6 month =1,200,000 yen

So you will receive 1.2 million yen from the government.

For the self employed or freelancers who work at home:

If you had declared a portion of your house rent as office or work space rent, you can apply for a subsidy for that amount that you declared.

What are the requirements to apply?

• Tax return form
• ID
• Sales book
• Bank passbook
• Copy of your rental contract

When can I start to apply?

Probably middle of July.

14th of July, 2020 [Updated on 7th of July]

NEED HELP?

If you need help with this or any of the available subsidies I’ve shared on my blog, don’t hesitate to contact me. Tell me about your situation, ask questions, and let me help you confirm your eligibility.

Stay safe,
AKIKO