In July 2026, the deadlines for Japan's large national subsidies are concentrated in the second half of the month. The three main ones are the Digitalization & AI Adoption Subsidy (each category 7/21), the SME Labor-Saving Investment Subsidy, General Type, 7th round (7/31), and the Business Succession & M&A Subsidy, 15th call (7/24). All require a GBizID Prime account for electronic application, and preparation often fails to be ready right before the deadline, so it is safer to start moving now. Last month's are compiled in June-deadline subsidies roundup.
| Subsidy | Deadline | Subsidy cap | Subsidy rate |
|---|---|---|---|
| Digitalization & AI Adoption Subsidy (formerly the IT Introduction Subsidy) | 7/21 (Tue) 17:00 | Up to ¥4.5 million | 1/2 (2/3 with wage increase) |
| SME Labor-Saving Investment Subsidy (General Type, 7th round) | 7/31 (Fri) 17:00 | Up to ¥100 million | 1/2 and up |
| Business Succession & M&A Subsidy (15th call for applications) | 7/24 (Fri) 17:00 | Up to ¥20 million | 1/2 to 2/3 |
Details of the July-deadline subsidies
Digitalization & AI Adoption Subsidy (formerly the IT Introduction Subsidy)
Deadline 7/21 (Tue) 17:00Supports the cost of adopting accounting software, ordering/inventory management systems, AI-equipped tools, and the like. Sole proprietors can also apply, and among the July-deadline subsidies it is the easiest to use. The first-deadline portion for the standard category, the invoice category (invoice-support type / electronic-transaction type), and the security-measures promotion category all fall on July 21[Secretariat schedule (in Japanese)].
The IT tools you adopt are chosen from products already registered with the secretariat. Note that only the multi-party collaboration IT introduction category has a later deadline, planned for August 25.
If you are adopting invoice-compatible accounting software or an ordering system, using the "invoice category" makes the subsidy rate and amount more generous. Hardware such as PCs and POS registers is also covered under the invoice-support type. It suits those considering adoption as an opportunity to respond to the invoice system.
SME Labor-Saving Investment Subsidy (General Type, 7th round)
Deadline 7/31 (Fri) 17:00A large category that broadly supports labor-saving and automation capital investment that helps resolve labor shortages, on a made-to-order basis. The 7th round opens for applications on July 1, 2026, with a deadline of 17:00 on July 31 (selection results planned for mid-November)[Small and Medium Enterprise Agency (in Japanese)].
Separate from the "catalog-order type" chosen from a registered catalog (up to ¥15 million, accepted on a rolling basis), this is the General Type, where you plan capital investment tailored to your own company and apply. Because the cap is large, you need to build out a solid business plan.
Applying requires a GBizID Prime account, and obtaining it takes a certain period. If you wait for July 31 without having obtained it, you will not make it in time. First, start with obtaining a GBizID.
Business Succession & M&A Subsidy (15th call for applications)
Deadline 7/24 (Fri) 17:00A program that supports the costs (expert fees, capital investment, PMI, etc.) of handing over to a successor or of a transfer or acquisition via M&A. Applications for the 15th call are accepted from June 19 to 17:00 on July 24, 2026[Small and Medium Enterprise Agency (in Japanese)].
There are categories such as the business-succession promotion category, the expert-utilization category, and the PMI promotion category, and the cap differs by category. In the 15th call, a "small-scale M&A support type" (cap of ¥1.5 million) was newly created to support M&A brokerage fees for small businesses. Check the application guidelines for the exact category and cap.
Subsidies easily mistaken as having a "July deadline"
Some information online has the fiscal year or round number off. Note that the following two do not have a deadline in July 2026.
For the standard category of FY2026 (Reiwa 8), the next round is the 20th (applications planned to open in November, with a December deadline), not a July deadline. However, the separate disaster-support category is expected to open for applications around July 27, aimed at disaster-affected businesses in the target areas.
The most recent 22nd round closed in January 2026. The next call is planned for spring 2026 or later, so there is no July deadline. Check the official site for the latest round.
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. As a tax site, let's grasp this point especially accurately.
For a corporation, a subsidy received is included in gains and subject to corporate tax; for a sole proprietor, it is included in the gross revenue of business income and subject to income tax. If you overlook the point that "you bought a machine with the subsidy, yet the subsidy itself is taxed," you can run short of funds at tax time[National Tax Agency No.5763 (in Japanese)].
National subsidies and the like used to acquire fixed assets can, through a reduction entry, defer the taxation of the year of receipt (for individuals, this is the special provision excluding it from gross 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 becomes smaller, and income in each year rises by that amount.
The subsidy itself has no consideration, so consumption tax does not apply. On the other hand, the consumption tax you paid when purchasing the subsidized equipment is eligible for the purchase tax credit as usual (except for the simplified taxation and tax-exempt businesses).
Equipment price: ¥5 million / subsidy: ¥2.5 million / own burden: ¥2.5 million
The ¥2.5 million subsidy received is included in gains (gross revenue) → left as is, corporate/income tax increases
Using a reduction entry, you can defer the taxation on ¥2.5 million for that year
Note: after the reduction, you depreciate on a book value of ¥2.5 million, so the annual depreciation expense is halved
Summary
FAQ
Is the subsidy deadline fixed at July every year?
No. The main subsidies (Digitalization & AI Adoption, Monozukuri, Sustainability, Labor-Saving Investment, Business Succession & M&A, and so on) have multiple calls (deadlines) per year, and the deadline date changes with each round. This article is information as of publication, so always check each official site for the latest call and deadline.
Are there subsidies that sole proprietors can also apply for?
Yes. The Digitalization & AI Adoption Subsidy can be applied for by sole proprietors too. Among the July-deadline subsidies it is the easiest to use, and it suits adopting accounting software and AI tools.
Is tax charged when you receive a subsidy?
A subsidy a business receives is, in principle, included in revenue and taxable. National subsidies and the like used to acquire fixed assets such as equipment can have their taxation deferred with a reduction entry.
Any tips for not failing your application?
Orders, contracts, and payments made before the grant decision (selection) fall outside the scope. Many use a reimbursement (post-payment) method, and electronic application requires GBizID Prime. Early preparation and consulting a certified support agency, a society of commerce and industry, or a chamber of commerce and industry are effective.
Sources / official information
This article is information as of publication (July 2026). Deadline dates, subsidy amounts, and requirements change with each call, so always check the official site and application guidelines of each subsidy before applying.
- Small and Medium Enterprise Agency — Mirasapo plus (list of subsidy, benefit, and other programs) (in Japanese)
- SMRJ — Subsidy Utilization Navi (latest schedule) (in Japanese)
- Digitalization & AI Adoption Subsidy 2026 — program schedule (in Japanese)
- SME Labor-Saving Investment Subsidy (General Type) (in Japanese)
- Business Succession & M&A Subsidy (FY2025 supplementary budget) (in Japanese)
- National Tax Agency — Tax Answer No.5763 Reduction entry for assets acquired with national subsidies and the like
- National Tax Agency — Tax Answer No.2100 Overview of depreciation
* This article is intended to provide information and is not tax advice. Deadline dates, subsidy amounts, and requirements change with each call. Before applying, please confirm with each subsidy's official site and application guidelines, or with a certified support agency, a society of commerce and industry, or a tax accountant.