The Penalty for Filing Late Tax Returns in Japan

Penalties for Late Tax Filing in Japan

Hi, my name is Taisei Koshida, and I am a certified public accountant and licensed tax accountant in Japan.

I support non-Japanese business owners and individuals who need to file tax returns in Japan and may find it difficult to deal with Japanese tax matters, especially when language is a barrier.

 
If you find the Japanese tax system confusing, I can help you handle your tax filings smoothly.

 
If you are unsure about the penalties for failing to file a tax return in Japan, this article may be helpful.

Voluntary Filing After the Due Date

If you file your tax return voluntarily after the due date but before any tax audit, the penalty is generally 5% of the unpaid tax.

For example, if the unpaid tax is JPY 1,000,000, the penalty would be JPY 50,000.

Filing After a Tax Audit

If the failure to file is identified during a tax audit, the penalty increases to 10% or 20% of the unpaid tax, depending on the circumstances.

In cases where the failure is considered intentional, a heavier penalty (often referred to as a surtax) of up to 40% may be imposed.

Interest Charges

In both cases, interest will be charged on the unpaid tax.

The rate depends on the statutory interest rate applicable at the time.

Drawbacks of Not Filing Taxes in Japan

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