Subsidies with June 2026 Deadlines|New Business, AI Adoption, Labor-Saving

This is an English translation of our Japanese article. Rules and figures may change; the Japanese version and official sources are authoritative.
SMEs / sole proprietors

Subsidies with June 2026 deadlines: don't miss New Business Expansion, Digitalization/AI Adoption, and Labor-Saving Investment

June 2026 sees a concentration of deadlines for large subsidies available to SMEs and sole proprietors. In particular, the SME New Business Expansion Subsidy's 4th round is expected to be its final round, making it the last chance to apply under the current scheme. This article organizes the subsidies whose deadlines fall within June, in order of deadline, and explains the key point to know before applying: that "subsidies are taxable."

A GBizID Prime account is required to apply

All of the subsidies below require a "GBizID Prime account" to apply. Because obtaining one can take several weeks, if you do not yet have one, start the procedure right away.

The bottom line: three main subsidies with June deadlines

SubsidyDeadlineSubsidy capSubsidy rate
SME New Business Expansion Subsidy (4th round, final round)6/19 (Fri) 18:00Up to ¥90 million1/2–2/3
Digitalization/AI Adoption Subsidy (formerly the IT Introduction Subsidy)6/15 (Mon) 17:00Up to ¥4.5 million1/2 (2/3 with wage increase)
SME Labor-Saving Investment Subsidy (catalog order type)Rolling intake (also possible during June)Up to ¥15 million1/2

Details of the subsidies with June deadlines

1

SME New Business Expansion Subsidy (4th round, final round)

Deadline 6/19 (Fri) 18:00

This is the largest-scale subsidy with a June deadline, supporting capital investment and the like by SMEs expanding into new markets and new businesses different from their existing operations.

Subsidy capUp to ¥90 million
Subsidy rate1/2–2/3
EligibleSMEs across a wide range of industries

Eligible expenses include building costs, machinery and equipment / system construction costs, outsourcing costs, and advertising costs.

Why it is the "last chance"

The 4th round of applications is expected to be the final round, with an integration with the Monozukuri (Manufacturing) Subsidy planned for the latter half of fiscal 2026. If you are considering expanding into a new business, don't miss this timing to apply under the current scheme.

2

Digitalization/AI Adoption Subsidy (formerly the IT Introduction Subsidy)

Deadline 6/15 (Mon) 17:00

Supports the cost of introducing accounting software, inventory management systems, AI-equipped tools, and more. Sole proprietors can also apply, making it the easiest subsidy to use among those with June deadlines[Secretariat (in Japanese)].

Subsidy capUp to ¥4.5 million
Subsidy rate1/2 (2/3 with wage increase)
Grant decision (planned)7/23 (Thu)

The eligible categories are the standard category / invoice category (invoice-compliant type and electronic-transaction type) / security measures promotion category / multi-party collaboration category. All have a deadline of June 15.

The invoice category is worth targeting

The IT tools you introduce are chosen from products already registered with the secretariat. For invoice-compliant accounting software and ordering/receiving systems, using the "invoice category" gives a more generous subsidy rate and amount.

3

SME Labor-Saving Investment Subsidy (catalog order type)

Rolling intake (also possible during June)

A scheme to introduce labor-saving equipment that helps address labor shortages, choosing from a registered catalog. Unlike the general type, it accepts applications on a rolling basis, so you can apply even during June.

Subsidy capUp to ¥15 million
Subsidy rate1/2
Eligible equipmentCleaning/serving robots, etc.

Eligible items include cleaning robots, serving robots, automatic ticket machines, and self-checkout registers. Note that the general type's 6th round closed on May 15, and the 7th round is scheduled to open for applications on June 5 with a deadline in late July.

Subsidies easily mistaken for having a "June deadline"

Some information online is off by a fiscal year. Note that the following two do not have a June 2026 deadline.

Subsidy for Sustainable Development of Small Businesses

For fiscal 2026 (Reiwa 8), the 20th round is scheduled to open for intake on November 5 and close on December 15. It is not a June deadline.

Business Improvement Grant

For fiscal 2026 (Reiwa 8), intake is expected to open on September 1. The June deadline was for fiscal 2025 (Reiwa 7), which has already ended.

Be sure to grasp this before applying: the tax treatment of subsidies

A subsidy is not "receive it and you're done." A subsidy you receive is, in principle, taxable. This is a point to grasp especially accurately.

(1) A subsidy is included in gross income (total revenue) and taxed

For a corporation, a subsidy received is included in gross profit and is subject to corporate tax; for a sole proprietor, it is included in the total revenue of business income and is subject to income tax. If you overlook the point that "you bought a machine with a subsidy, yet that subsidy is taxed," you may run short of funds at tax time[National Tax Agency No.5763 (in Japanese)].

(2) You can defer taxation with reduction-entry accounting

National treasury subsidies and the like applied to the acquisition of fixed assets can have the taxation for the year of receipt deferred through reduction-entry accounting (for individuals, the special provision for exclusion from total revenue under Article 42 of the Income Tax Act). However, this is a "deferral" of taxation, not an "exemption": because you depreciate on the reduced book value, the depreciation expense in later years is smaller, and by that amount your income increases each year.

(3) The treatment of consumption tax

Because the subsidy itself has no consideration, consumption tax does not apply. On the other hand, the consumption tax you paid when purchasing the subsidized equipment is subject to input tax credit as usual (except for simplified taxation and tax-exempt businesses).

Example: introducing ¥3 million of equipment at a 1/2 subsidy rate

Equipment price: ¥3 million / subsidy: ¥1.5 million / self-funded portion: ¥1.5 million

The ¥1.5 million subsidy received is included in gross profit (total revenue) → left as is, corporate/income tax increases

Using reduction-entry accounting, the taxation on the ¥1.5 million can be deferred for that year

Note: after reduction, you depreciate on a book value of ¥1.5 million, so the annual depreciation expense is halved

Summary

June's main deadlinesThree: New Business Expansion (6/19), Digitalization/AI Adoption (6/15), and Labor-Saving catalog type (rolling)
Last chanceThe New Business Expansion Subsidy is in its final round. The last opportunity to apply before integration with the Monozukuri Subsidy
PreparationA GBizID Prime is required to apply. If you don't have one, get it as a top priority
Mind the fiscal yearThe Subsidy for Sustainable Development of Small Businesses and the Business Improvement Grant do not have June deadlines
Tax treatmentA subsidy received is taxable. For fixed assets, consider deferring taxation with reduction-entry accounting

FAQ

Is a subsidy's deadline always fixed at June each year?

No. Major subsidies (IT Introduction, Monozukuri, Sustainable Development, Labor-Saving Investment, etc.) have multiple application rounds (deadlines) per year, and the deadline changes with each round. This article reflects information as of publication, so always confirm the latest application round and deadline on each official website.

Is tax charged when you receive a subsidy?

A subsidy a business receives is, in principle, included in income and taxable. National treasury subsidies and the like applied to the acquisition of fixed assets such as equipment can have taxation deferred through reduction-entry accounting.

Any tips to avoid failing in the application?

Orders, contracts, and payments made before the grant decision (adoption) are not eligible. Many use a reimbursement (post-payment) method, and a GBizID is required for the electronic application. Preparing early and consulting a certified support organization or a chamber of commerce is effective.

Sources / official information

This article reflects information as of publication. Deadlines, subsidy amounts, and requirements change with each application round, so always confirm each subsidy's official website and application guidelines before applying.

* This article is intended to provide information and is not tax advice. Deadlines, subsidy amounts, and requirements change with each application round. Before applying, confirm with each subsidy's official website and application guidelines, or with a certified support organization, chamber of commerce, or tax accountant.