Japan Corporate Tax Filing Deadlines: Extensions and Late Filing

Corporation tax final returns and payments in Japan are generally due within two months from the day after the end of the fiscal year. If accounts cannot be finalized in time because of provisions in the articles of incorporation or similar reasons, you can apply to extend the filing deadline, generally by one month. However, interest tax is charged for the extension period, and consumption tax and local taxes are extended through separate procedures.

Basic rules for corporation tax filing and payment deadlines

A corporation finalizes its accounts for each fiscal year and files a corporation tax final return based on those accounts. The basic rules on deadlines and payment are as follows.

• Final return deadline: Within two months from the day after the end of the fiscal year
• Payment deadline: The same day as the final return deadline
• Holidays: If the deadline falls on a Saturday, Sunday, national holiday or similar, the deadline is the following day

The extension column shows examples with a one-month extension. In the first fiscal year, the fiscal year runs from the date of incorporation to the first fiscal year-end set in the articles of incorporation.

Setting the fiscal year and timing of returns

The fiscal year is set in the articles of incorporation (定款) and cannot exceed one year. Japanese subsidiaries of foreign companies often align their year-end with the parent’s consolidated accounts. Another approach is to choose a year-end so that closing and filing do not coincide with the busiest season. To change the fiscal year, amend the articles of incorporation and then file a notification of changes with the tax office and other bodies.

Taxes filed at the same time

Corporations with capital exceeding ¥100 million and certain others must file corporation tax and consumption tax returns via e-Tax. For how each tax works, see An overview of taxes on Japanese companies.

Extending the corporation tax filing deadline

Companies that need more than two months to have their accounts approved at the shareholders’ meeting can use the special rule extending the filing deadline. It is widely used by subsidiaries of foreign companies that align with the overseas parent’s closing schedule and audit.

Requirements and length of the extension

• Standard (one month): Applies where, because of provisions in the articles of incorporation or similar, or because of special circumstances, the annual general meeting is habitually not convened within two months from the day after the end of the fiscal year.
• Corporations with an accounting auditor: Where, because of provisions in the articles of incorporation or similar, the annual general meeting is habitually not convened within three months, an extension of the number of months designated by the district director of the tax office is available.

A typical case is a company whose articles provide that the annual general meeting is convened within three months after the end of the fiscal year. Start by checking how your articles set the timing of the meeting.

Application procedure and deadline

• Application form: Submit the “Application for the special rule extending the filing deadline under the articles of incorporation, etc.” to the district director of the tax office with jurisdiction over your place of tax payment.
• Submission deadline: By the last day of the first fiscal year for which you want the extension. Applying after the year-end is too late.
• Approval: If no decision is issued within 15 days from the day after the end of the fiscal year, the extension is deemed approved.
• Continuation: Once approved, the extension continues for subsequent fiscal years.

Interest tax still applies

With the extension, you may pay by the extended filing deadline. However, interest tax is charged for the period from the day after the original deadline to the date of payment. To limit interest tax, you can pay an estimated amount by the original deadline.

A separate extension regime exists where accounts cannot be finalized for unavoidable reasons such as a disaster. In that case, apply within 45 days from the day after the end of the fiscal year.

Extension procedures for consumption tax and local taxes

Extending the corporation tax filing deadline does not necessarily extend the deadlines for other taxes automatically.

The notification of extension of the consumption tax filing deadline must be filed by the last day of the taxable period that includes the last day of the fiscal year for which you want the extension. Interest tax is also charged on consumption tax for the extension period. Interim return deadlines are not extended.

The enterprise tax extension is notified to the prefecture where your principal office is located. Forms and filing deadlines are set by each prefecture, so check the guidance of the relevant prefecture.

Interim returns and payments for corporation tax and consumption tax

Corporation tax interim returns

A corporation whose fiscal year exceeds six months files an interim return and pays within two months from the day on which six months have elapsed since the start of the fiscal year. There are two methods.

• Provisional return: Pay the previous year’s final corporation tax divided by the number of months in the previous year and multiplied by six. If this amount is ¥100,000 or less, no interim return is required.
• Interim return based on interim accounts: Prepare provisional accounts for the first six months and file based on the resulting tax. This method cannot be used if the tax would exceed the amount under the provisional return.

If you do not file an interim return by the deadline, a provisional return is deemed to have been filed. In the first fiscal year there are no previous-year results, so an interim return is normally not required.

Consumption tax interim returns

The number of consumption tax interim returns depends on the consumption tax amount (excluding local consumption tax) for the previous taxable period.

How to determine whether you are liable for consumption tax is explained in Determining consumption tax exempt status.

Consequences of missing the filing deadline

• Penalty for failure to file: Filing after the deadline generally incurs a penalty for failure to file, calculated on the tax payable. It is reduced if you file voluntarily before being notified of a tax audit.
• Delinquency tax: Late payment incurs delinquency tax according to the number of days from the day after the statutory payment deadline to the date of payment.
• Revocation of blue return status: If you fail to file on time for two consecutive fiscal years, approval to file blue returns is in principle revoked from the second of those fiscal years onward. You then lose benefits such as loss carryforwards.

You must file even in a loss-making year with no tax to pay. The per capita levy of corporate inhabitant tax is payable even if you make a loss. If you expect to miss a deadline, consult a certified tax accountant (税理士) early, including on whether the extension is available.

Your tax payment record is also checked in bank loan reviews and Business Manager visa renewals. Managing deadlines bears directly on your company’s credibility.

Sample annual schedule for a company with a March year-end

Deadlines for filings right after incorporation are listed in Filings after incorporation: a checklist with deadlines.

Summary: corporation tax filing deadlines

Corporation tax returns and payments are generally due within two months from the day after the end of the fiscal year. The extension must be applied for by the last day of the fiscal year, and consumption tax and corporate enterprise tax have separate procedures. Because interest tax applies even with an extension, it is important to plan the timing of payment as well.

Together with partner certified tax accountants, TIMOA supports you with designing your fiscal year and articles of incorporation, applying for the extension, and everything from monthly bookkeeping to year-end closing and returns for each tax. We can also help build a schedule aligned with your overseas parent’s closing timetable. For details, see our Accounting, Tax & HR services.