Japan Subsidies Closing September 2026: Watch the Wage

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This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative. For individual matters, consult a tax office or a licensed tax accountant (zeirishi).

September 2026 has few national subsidy deadlines, but it contains one that is easy to miss and impossible to recover from: the Business Improvement Subsidy (gyomu kaizen joseikin). From this fiscal year its filing deadline is the day before the regional minimum wage takes effect, which means an effective deadline of 30 September in prefectures where the new wage starts on 1 October. Applications only open on 1 September, so the real preparation window is a single month. Also closing this month are the Small Business Sustainability Subsidy <Joint and Collaborative Type> Round 3 (30 Sep, up to ¥50 million) and Tokyo's Product Improvement / Standards Compliance and Certification support (30 Sep, up to ¥5 million). Our previous round-up is July deadlines.

ProgrammeDeadlineCapRate
Business Improvement Subsidy (MHLW)Day before the minimum wage takes effect
(30 Sep if it starts 1 Oct)
Up to ¥6 million3/4–9/10
Small Business Sustainability Subsidy <Joint / Collaborative> Round 330 Sep (Wed) 17:00Up to ¥50 million2/3
Tokyo: Product Improvement / Certification support30 Sep (Wed) 17:00¥5 millionUp to 1/2
First, a warning: the big subsidy listed as "30 September" is actually 30 October

The New Business Entry / Manufacturing and Commercial Services Subsidy (Round 1, up to ¥90 million) was originally announced with a 30 September deadline, but the schedule was pushed back by one month on 17 July 2026 and the deadline is now 30 October at 18:00. Many explainer articles still show the old date, so there is no need to rush. See the section below.

September deadlines in detail

1

Business Improvement Subsidy (Ministry of Health, Labour and Welfare)

Day before the wage takes effect

This subsidises part of the cost of productivity-raising capital investment (machinery, systems, consulting) for small and medium businesses that also raise the minimum wage inside their workplace. Anyone employing even one worker can qualify, including sole proprietors.

Cap¥6 million
Opens1 September
Courses¥50 / 70 / 90
Apply toPrefectural Labour Bureau

This year's trap: the deadline differs by prefecture

For FY2026 the filing deadline is whichever comes first: the day before the regional minimum wage takes effect in the prefecture where your workplace is located, or 30 November 2026. The FY2026 regional minimum wages follow a national weighted-average guideline of ¥1,176 (up ¥55) and take effect from October onwards. If your prefecture starts on 1 October, your deadline is 30 September.

"I have until the end of November" can be wrong

Effective dates differ by prefecture, and in years with large increases some prefectures push the date back. Check your own prefecture's effective date first and work backwards. If it is 1 October, your entire preparation window is the month of September. We cover the FY2026 increase in the minimum wage rise and the ¥1.06 million threshold.

A second change: raise wages only after approval

In FY2026 the wage increase must be carried out after the grant application. Applying retroactively for a raise you have already made is not accepted. The order is apply → receive approval → raise wages and invest → report results. Getting this backwards disqualifies the application itself.

Who benefits most

Workplaces whose internal minimum wage is below ¥1,050 qualify as "special businesses" with a higher cap, as do businesses whose profit margin fell by three percentage points or more due to rising input costs. If you have to raise hourly pay anyway because of the minimum wage, pairing that raise with capital investment is the most efficient use of this programme.

2

Small Business Sustainability Subsidy <Joint and Collaborative Type> Round 3

30 Sep (Wed) 17:00

Here the applicant is not an individual business but a "regional promotion organisation" — a chamber of commerce, a society of commerce and industry, a tourism association or a town-development company — supporting a group of small businesses together. Do not confuse it with the familiar general-type sustainability subsidy.

Cap¥50 million
Rate2/3
Window14 Aug – 30 Sep
SystemjGrants

Eligible activities include running trade fairs and business-matching events, pop-up retail, and setting up marketing bases that open sales channels for the participating businesses. At least ten small businesses must take part. The rate is two-thirds, with secretariat costs covered at a fixed amount.

For sole proprietors

You cannot apply yourself, but if your local chamber of commerce has applied, you can join as a participating business and use the sales-channel opportunities at little or no cost. It is worth calling your local chamber before the end of September to ask whether they are applying.

3

Tokyo: Product Improvement / Standards Compliance and Certification Support

30 Sep (Wed) 17:00

This helps Tokyo-based SMEs pay for improving their own products to meet market needs, or for obtaining standards compliance and certification. The window is only three weeks, from 7 to 30 September.

Cap¥5 million
Floor¥500,000
RateUp to 1/2
Window7–30 Sep

Applications go only through the jGrants electronic system, and a GBizID Prime account is mandatory. Issuance can take around two weeks, so apply for the account now rather than waiting for the 7 September opening. Support from a "pricing strategy adviser" is also included, to help reflect technical value in your prices.

Programmes that open in September (deadlines in October or later)

September is a month of openings more than closings. Tracking only deadlines means missing the moment preparation should start.

New Business Entry / Manufacturing (Round 1)Up to ¥90 million. Deadline 30 October (Fri) 18:00. September is for finishing the business plan
Labour-Saving Investment Subsidy (General, Round 8)Applications expected to open mid-September, closing mid-October. For automation and labour-saving equipment
Business Improvement SubsidyOpens 1 September; as above, closes the day before the minimum wage takes effect
Tokyo Startup Support Grant (Round 2)Up to ¥4 million. In FY2025 the window ran from late September to early October. Check the Tokyo SME Support Center for the FY2026 dates

Programmes wrongly believed to close in September

This is the most important part this month. Rushing a weak business plan at a subsidy whose deadline has moved — or already passed — only buys you a rejection.

ProgrammeActual deadlineWhy the confusion
New Business Entry / Manufacturing and Commercial Services (Round 1) 30 Oct (Fri) 18:00 Announced with a 30 September deadline, then pushed back one month on 17 July 2026. Many explainers still carry the old date
Digitalisation and AI Adoption Subsidy 2026 (formerly the IT Introduction Subsidy) Round 4 closed 25 Aug All categories closed together at 17:00 on 25 August. Round 5 onwards is "to be updated", so there is no September deadline
Small Business Sustainability Subsidy <General, Standard> Round 20 15 Dec (Tue) 17:00 Applications open 5 November. Being the best-known subsidy, people assume it runs every month
Labour-Saving Investment Subsidy (General, Round 8) Mid-October (planned) Applications open in mid-September, so the opening date gets mistaken for the closing date
Where to verify a deadline

Subsidy deadlines change mid-year as a matter of course. Always check the "application schedule" page on each secretariat's official site, not a commentary article. You can search which companies were selected in the past in our subsidy award database, and the mechanics of the system are covered in our guide to subsidies and grants.

Before applying: GBizID and the tax treatment

Apply for GBizID Prime today

Both the sustainability subsidy and Tokyo's grant use the jGrants electronic system, which requires a GBizID Prime account. Issuance can take around two weeks. Realising this just before the deadline is too late — get the account before you start writing the plan.

Subsidies are taxable

This is widely overlooked: the money you receive is taxed. For a company it is gross profit; for a sole proprietor it is included in gross business revenue. Receiving ¥5 million does not mean keeping ¥5 million.

Example: buying ¥5 million of equipment with a 1/2 subsidy of ¥2.5 million

The ¥2.5 million is revenue in the year you receive it, while the ¥5 million of equipment is expensed through depreciation over several years. In year one, profit — and therefore tax — can swell.

→ This is what compressed entry accounting is for

Compressed entry accounting reduces the book value of an asset bought with a subsidy by the subsidy amount and books that reduction as a loss, deferring the tax on the subsidy into future years. The tax does not disappear; it is postponed. There are filing requirements, so consult a tax accountant when the amounts are large.

The same applies to grants

Ministry of Health, Labour and Welfare grants such as the Business Improvement Subsidy are taxable too. However, compressed entry accounting generally applies only to national subsidies used to acquire fixed assets. Amounts spent on expenses such as consulting fall outside it, so what you spent it on changes the treatment.

What to do today

  1. Check your prefecture's minimum wage effective date on the ministry or prefectural labour bureau site — it determines the Business Improvement Subsidy deadline
  2. If you do not have a GBizID Prime account, apply now (issuance takes about two weeks)
  3. Call your local chamber of commerce and ask whether they plan to apply for the joint and collaborative type

Frequently asked questions

When exactly is the Business Improvement Subsidy deadline?

Whichever comes first: the day before the regional minimum wage takes effect in the prefecture where your workplace is located, or 30 November 2026. Because the FY2026 minimum wages take effect from October onwards, prefectures starting on 1 October have an effective deadline of 30 September. Effective dates differ by prefecture, so check your own.

I already raised wages. Can I still apply?

In FY2026 the wage increase must be carried out after the grant application, so you cannot apply retroactively for a raise already made. At your next increase, follow the order: apply, receive approval, then raise wages.

Can a sole proprietor apply for these September deadlines?

The Business Improvement Subsidy can cover sole proprietors who employ staff and raise the workplace minimum wage. The joint and collaborative type of the sustainability subsidy is applied for by regional promotion organisations, so you cannot apply directly, though you may join as a participating business. Tokyo's product improvement support is for SMEs based in Tokyo.

Isn't the New Business Entry / Manufacturing subsidy due on 30 September?

Round 1 was originally announced with a 30 September deadline, but the schedule changed on 17 July 2026 and the deadline is now 30 October at 18:00. Articles carrying the old date are still circulating, so check the secretariat's official schedule page.

How do I treat a subsidy on my tax return?

Companies book it as gross profit; sole proprietors include it in gross business revenue. If it was a national subsidy used to acquire fixed assets, compressed entry accounting can defer the tax to later years, but the tax is not cancelled. There are conditions, so consult a tax office or a licensed tax accountant when the amounts are large.