On 1/May, Japanese Government started to accept applications of "持続化給付金" or JIZOKUKA-KYUFUKIN, じぞくかきゅうふきん for the companies suffer from Sales decrease due to COVID-19. The Government pays up to 2 million yen for an incorporated SME or 1 million yen for a non-incorporated self-employed persons where applicable.
In this article, you will see the overview of the benefit program.
What is "持続化給付金" or JIZOKUKA-KYUFUKIN じぞくかきゅうふきん
The points
- The Government pays up to 2 million yen for an incorporateEnterd SME or 1 million yen for a non-incorporated self-employed persons.
- Those who, suffer from Sales (or turnover) decrease less than half in a month of 2020 compared to the same month of 2019, are qualified.
- The paid money can be used in any uses.
- The program is carried out by the government's extra budget of 2020. The budget's amount is 2.3 trillion yen.
- 3rd party (Service Design Engineering Council) is the front desk of the application.
- Basically on-line application. Those who are not well at PC or smartphone may contact the supporting team (to be announced later)
- Cash will be paid approxilately 2 week later after application (unless filling mistakenly)
Which SMEs or persons are qualified?
Every non-incorporated self-employed persons (known as "freelance" in Japan) who fulfills sales (or turnover) criteria below.
Incorporated SMEs whose # of employess are less than 2,000 or which is capitalized less than 1 billlion yen.
Sales (turnover) criteria
The Government will pay up to 2 million yen for incorporated SMEs or 1 million yen for non-incorporated self-employed persons who fulfill the Sales criteria below.
Criteria
Total Sales of the last yeas (2019) minus (A Monthly Sales which is less than half of the same month of the last year multiples 12 (month) )
Case study
The formula is too complicated to undestand, so I will show a case on how to calculate the amount of the benefit.
Some different criteria may be applicable for those who started the business during 2019, or for those whose Sales deviates a lot month by month. Please see details below.
How to demonstrate Sales decrease?
How should you demonstrate Sales decrease? Basically, you need to file in-come tax return process of 2019. On top of this, you need the following documents;
For incoraporated SMEs
- 確定申告書別表一の控え（a reserve document of in-come tax return application form No.1) and 法人事業概況説明書 の控え (2 reserve documents of corporates business overview briefing). （２枚）. 確定申告書別表一の控え（a reserve document of in-come tax return application form No.1) must be stamped with the date of reception. For those who submitted these documents on-line (by "e-Tax"), you need to attach 受信通知 (Nofitication of receipt)
- A document which shows the monthly Sales of 2020 which is less than half of the same month of the previous year. i.e. a bookeeping document like Sales ledger.
For non-incoraporated self-employed persons
- Blue return
- 確定申告書第一表の控え（a reserve document of in-come tax return application form No.1 of 2019) with the stamp of the date of reception. For those who submitted these documents on-line (by "e-Tax"), you need to attach 受信通知 (Nofitication of receipt) and
- 所得税青色申告決算書の控え (2 reserve documents of In-come tax Blue return financial statement)
- White return
- 確定申告書第一表の控え（a reserve document of in-come tax return application form No.1 of 2019) with the stamp of the date of reception. For those who submitted these documents on-line (by "e-Tax"), you need to attach 受信通知 (Nofitication of receipt)
- (Both Blue and White) A document which shows the monthly Sales of 2020 which is less than half of the same month of the previous year. i.e. a bookeeping document like Sales ledger.
How to apply on-line?
Basically you should apply on-line. If you are not well at PC, tablet, or smartphone, you might want to ask support teams for face-to-face help, which will be announced later.
For those who started the business during 2019
Those who started the business (both of incorporated SME and of non-incorporated self-employed person) during 2019 need to follow a different criteria.
Case study
In the case you started the business in Oct 2019, you achieved the Sales of 1.2 mio yen for the 3 months of the year. Firstly you should calculate the average monthly Sales of 2019, which is 40K yen. You also assume that the yearly Sales might be 40K x 12 months = 480K yen.
Secondly, you should find the Sales of the month where the monthly Sales is less than the monthly avarage Sales of the previous year -- 40K yen. In the picture below, The sales of Apr 2020 is less than the average. In this case you are qualified for the benefit.
The amount of the benefit is calculated that 480K yen (assumed yearly Sales of 2019 ) minus 20K yen (Sales of 2020 Apr) x 12 months equals 240K Yen. However you will be paid up to 1 mio yen when you are non-incorporated self-employed person, so the amount to be paid will be 1 mio yen.
Unfortunately, SMEs or persons who started the business in 2020 are NOT qualified.
Official point of contact
持続化給付金事業コールセンター (JIZOKUKA-KYUFUKIN call center) are on duty now. They are probably not able to communicate in English or any other languages than Japanese.
Official point of contact
0120ｰ115ｰ570 (toll free) or 03-6831-0613
Available everyday from 8:30 to 19:00 (May and June)
Available on weekdays from 8:30 to 19:00 (July)
Available on weekdays from 8:30 to 17:00 (From August on)