If You Are Required to Pay Additional Taxes as a Result of a Tax Audit, for Which Periods Will Interest on The Extra Taxes Be Applicable in Japan?

【Koshida Accounting Firm Column Date:

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


I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.


If you are unclear about Japanese tax interest, you might find this blog helpful.




Not All Periods Will Be Subject To Interest.

For instance, if the income tax return from three years prior was underestimated, interest does not apply to all periods from the original due date, which is March 15th of two years prior, to the day the additional taxes are paid. Interest applies only for the one-year period starting the day after the original due date. The current interest rate is around 3%.


In The Case of Deliberate Concealment

However, if it is considered deliberate concealment, interest will apply for the entire period from the day after the original due date until the day the additional taxes are paid.



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