GUIDE · BASICS
Subsidy vs. grant: hojokin and joseikin
補助金と助成金の違いTwo words you will see on every Japanese funding page
Japanese public funding comes in two main kinds. Hojokin are competitive subsidies for investment. Joseikin are employment grants you receive when you meet the conditions.
Hojokin
Compete
Selected by review, budget-limited
Joseikin
Qualify
Paid when the conditions are met
Both
Not loans
No repayment if you follow the rules
Paid
Later
You pay first, then claim
Side by side
| Hojokin 補助金 | Joseikin 助成金 | |
|---|---|---|
| Run by | Mainly the SME Agency (METI) and local governments | Mainly the Ministry of Health, Labour and Welfare |
| For | Investment: software, equipment, new business, marketing | Employment: hiring, wages, training, working conditions |
| Selection | Competitive review, in rounds with deadlines | Meet the requirements; many accept applications all year |
| Typical size | ¥500,000 to ¥100M | Hundreds of thousands to a few million yen |
| Who may apply for you, for a fee | Gyoseishoshi 行政書士 | Sharoshi 社会保険労務士 |
| Examples | Digitalization & AI, Sustainability, Labor-Saving, Monozukuri | Career-Up, Work Improvement |
The words are not always used strictly — some local “joseikin” work like competitive subsidies. Always read the guidelines.
What they have in common
- Not loans. You do not pay them back if you follow the rules.
- Paid afterwards. You spend first, report, and then receive the money.
- Usually taxable. They are generally counted as business income — ask a tax accountant.
- One cost, one program. You cannot claim the same cost from two programs.
Misuse is expensive
For employment grants obtained by fraud, the ministry requires full repayment plus an extra 20% and late charges, bans the business from employment grants for 5 years, and may publish its name. Subsidies have similar return rules.
Which should you look at first?
Buying something — software, a machine, a renovation? Start with hojokin: Digitalization & AI, Labor-Saving or Sustainability.
Hiring, converting staff or raising wages? Look at joseikin: Career-Up and Work Improvement. They have no competition, but the paperwork must start before you act.
FAQ
What is the difference between hojokin and joseikin?
Hojokin (補助金) are mainly competitive subsidies for business investment, selected by review within a budget. Joseikin (助成金) are mainly employment grants from the labour ministry, paid when you meet the conditions. Both are paid after you spend and do not need to be repaid if you follow the rules.
Do I have to pay back a Japanese subsidy?
No, as long as you follow the rules. Some programs ask for part of the money back if you miss wage targets, and misuse or fraud leads to repayment and penalties.
Are subsidies taxable in Japan?
They are generally treated as business income. A tax accountant (税理士) can explain how they affect your taxes and any special treatment for equipment.
Sources
- Career-Up Grant — fraud rules for employment grants (不正受給について)
- Digitalization & AI Subsidy — official site
- Work Improvement Grant — Ministry of Health, Labour and Welfare
This page is a plain-English summary, not legal advice. The official Japanese guidelines always take priority.
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