This page gives the main tax compliance deadlines for a small or medium-sized company operating in Japan with a fiscal year ending December 31st of the calendar year.
Please note that this tax compliance timeline is given for illustrative purposes and your actual tax compliance schedule may vary due to the calendar or other specific tax office measures.
Companies in Japan are free to choose the month in which their fiscal year will end. In those cases, the fiscal year will end on the last day of the chosen month. In practice, subsidiaries of foreign companies generally align their Japan fiscal year to correspond with the end of the fiscal year for their parent company.
The withholding tax report lets the Japan tax authorities know that tax has been withheld as well as the amount that has been withheld. This applies to any tax withheld from employee salaries and any payments made to professionals who do not operate under a corporate structure such as Japanese lawyers or tax accountants.
The fixed asset tax return lists all the fixed assets of the company as well as their depreciation and book values to be evaluated by the Japan tax authorities.
Consumption tax is due on all purchases and sales completed in Japan. The consumption tax return reports the amount of consumption tax that has already been collected and the amount of consumption tax that has been paid on purchases. The deadline for paying the Japanese consumption tax is the same day and there is no way to get an extension on paying your consumption tax.
The Corporate Tax Return reports the financial situation of the company to the Japan tax authorities. This includes filing an income statement, balance sheet, change in shareholders equity, and other documents. Your tax liability in Japan is calculated based on the financial statements provided in this return.
It is possible to file for a one-month extension on corporate tax; however, even if the deadline is extended to March 31st, the tax is due on February 28th. Interest will also apply if the company pays corporate tax later than the due date.
If the company has fewer than 10 employees and has applied for semi-annual payment of withholding tax, the payment of withholding tax to the Japan tax authorities is due on July 10th (for tax withheld during the first semester) and January 10th (for tax withheld during the second semester).
Depending on your tax situation, your Japan company may receive an interim tax payment notice slip from the tax office based on half the tax payment that was made for the previous year on February 28th.
If the company wishes to pay less tax than the amount proposed in the interim tax payment, which is equal to 50% of the previous year’s tax paid, it may file an interim tax return.
As you can see, keeping track of all the filing deadlines for the various tax forms required by the Japanese government can be rather confusing. Missing any of these deadlines could leave you responsible for paying fines, and you may also face additional consequences for non-compliance.
If you are operating a company in Japan and have questions about all the various tax deadlines, the team at JMC can help. We have combined decades of experience helping foreign business owners in Japan keep track of tax deadlines and more. Get in touch with us right away with all your questions and concerns. In addition to providing advice about taxes, we can also help you with other aspects of your business including payroll, bookkeeping, office setup, and so much more.
Disclaimer: The information provided here is for illustrative purposes only. JMC cannot be held liable for any decisions made based on this information. For any advice regarding taxes in Japan, a licensed tax accountant should be consulted.