The Japanese tax system is pretty complex, so I think it is difficult to understand. So I will explain the essential Japanese tax schedule simply in this blog.  

1. After Incorporation

You must submit a notification of opening a corporation to the tax office and municipal tax offices. In addition, it is common to submit the Blue Form Application and others simultaneously. You cannot get special treatment if you do not submit them by the proper time.

2. Filing Tax Returns and Payment Taxes

You must file tax returns and pay taxes with corporation and consumption taxes within two months after the end of the fiscal year. If you fail to do so, you will owe penalty taxes and may lose the right to special treatment. After the second year, the time to pay taxes depends on the amount of tax from the last year. Advance payment with corporation tax is once a year, while the consumption tax is at most every month.

3. Withholding Tax

If you pay a salary to employees and fees to specialists, such as tax accountants, you must withhold proper tax and pay it to the tax office every month. If your business is small, you can pay them once every six months.

4. The Year-end Tax Adjustment

If you pay a salary to employees, including your own director’s fee, the company must conduct the year-end tax adjustment at the end of the year. This means that the company calculates and withholds the income taxes of employees.

As one of the membes of the group ‘ Business Support in Japan’, I have many experiences and deeply and wide knowlage as well as strong desire to support forign people and companies who starting businesses in Japan. Please feel free to contuct me if you have any questions and concerns.