The Penalty for Filing Late Tax Returns in Japan

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 struggle 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 the penalties for failing to file a tax return in Japan, you might find this blog helpful.

Voluntary Filing After the Due Date

If you voluntarily file your tax return after the due date but before a tax audit, you will be subject to a 5% penalty on the unpaid tax. For example, if you owe JPY 1,000,000 in taxes, the penalty would be JPY 50,000.

Filing After a Tax Audit

If you file your tax return following a tax audit, the penalty rate is 10% or 20% of the unpaid tax amount. Furthermore, if the failure to file is determined to have been intentional, a substantial penalty (often referred to as a surtax) of 40% may be imposed.

Interest Charges

In addition, in both cases, interest will accrue on the unpaid tax. The applicable rate depends on the statutory interest rate in effect at the time.

Drawbacks of Not Filing Taxes in Japan

Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.