How to Pay Individual Income Tax in Japan: A Guide for Sole Proprietors
【Koshida Accounting Firm Column Date:】
“Price is what you pay. Value is what you get.” – Warren Buffett
Hello, my name is Taisei Koshida, a Japanese Certified Public Accountant and Licensed Tax Accountant.
I help foreign business owners in Japan navigate Japanese accounting and tax matters, especially when language barriers make the process difficult.
If you operate as a sole proprietor in Japan, you have several options for paying your individual income tax. This article explains the main payment methods and what you should know before choosing one.
1. Paying by Cash
You can pay your individual income tax in cash at banks, post offices, convenience stores (where eligible), or tax offices using an official payment slip.
2. Automatic Bank Transfer (Furikae)
Automatic bank transfer is one of the most popular payment methods for sole proprietors.
To use this method for the first time, you must submit an application before the filing deadline.
Once registered, the tax will automatically be withdrawn from your designated bank account on the scheduled payment date, which is usually later than the standard payment deadline.
3. Electronic Payment Through e-Tax
The National Tax Agency’s e-Tax system allows taxpayers to pay taxes electronically using several payment methods.
(1) Direct Payment (Direct Debit)
Before using this method, you must register your bank account with the National Tax Agency.
When you file your tax return through e-Tax, you can specify the date on which you would like the tax payment to be withdrawn automatically.
(2) Internet Banking (Pay-easy)
If your financial institution supports Pay-easy, you can pay your taxes through internet banking without submitting an advance application.
4. Credit Card Payment
You can also pay your taxes by credit card through the designated payment website.
A payment processing fee applies, but no advance registration is required.
5. Smartphone Payment Apps
The National Tax Agency also allows certain tax payments through approved smartphone payment apps.
The available payment methods and maximum payment amount may change, so be sure to check the latest information before making a payment.
6. Important Note
Tax rules and payment procedures in Japan may change over time.
Before filing or paying your taxes, we recommend checking the latest guidance published by the National Tax Agency (NTA) or consulting a qualified tax professional if you are unsure.
7. Need Help Filing or Paying Taxes in Japan?
At Koshida Accounting Firm, we have extensive experience helping foreign business owners with Japanese accounting and tax matters.
Through our network of trusted professionals, we can also assist with visas, company registration, social insurance, legal matters, website development, digital marketing, and business consulting in Japan.
All of our services are provided in English.
If you have any questions about filing tax returns or paying taxes in Japan, please feel free to contact us through our inquiry form.