The Penalty for Filing Late Tax Returns in Japan
【Koshida Accounting Firm Column Date:】
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 foreign business owners and individuals who need help with tax filing and accounting in Japan, particularly when language is a barrier.
If you miss the deadline for a Japanese tax return (kakutei shinkoku / 確定申告), you may have to pay a late filing penalty in addition to the original tax and interest charges.
The amount of the penalty depends largely on when you file. Filing voluntarily before the tax office contacts you generally results in a lower penalty than filing after a tax audit has started.
This article explains the main penalties for late tax filing in Japan and what you should do if you have missed the filing deadline.
| When you file | General late filing penalty |
|---|---|
| Voluntarily before advance notice of an audit | 5% |
| After advance notice, before anticipating an assessment* | 10% / 15% / 25% |
| After anticipating an assessment or tax office assessment* | 15% / 20% / 30% |
*For returns with a statutory filing deadline on or after January 1, 2024. The rate depends on the amount of unpaid tax. Additional or heavier penalties may apply in certain cases.
Voluntary Filing After the Due Date
If you voluntarily file your Japanese tax return after the due date but before receiving advance notice of a tax audit from the tax office, the late filing penalty is generally 5% of the unpaid tax.
For example, if the unpaid tax is JPY 1,000,000, the penalty would generally be JPY 50,000.
Therefore, if you realize that you have missed the filing deadline, filing voluntarily as soon as possible can make a significant difference.
Filing After a Tax Audit
The penalty can become higher once the tax office has notified you of a tax audit.
For returns with a statutory filing deadline on or after January 1, 2024, if you file after receiving advance notice of a tax audit but before you are considered to have anticipated a tax assessment by the tax office, the late filing penalty is generally:
– 10% on the portion of unpaid tax up to JPY 500,000
– 15% on the portion over JPY 500,000 and up to JPY 3,000,000
– 25% on the portion over JPY 3,000,000
If you file after the tax audit has progressed to the point where an assessment by the tax office is anticipated, or if the tax office makes the assessment, the rates are generally:
– 15% on the portion up to JPY 500,000
– 20% on the portion over JPY 500,000 and up to JPY 3,000,000
– 30% on the portion over JPY 3,000,000
Different rules may apply to earlier tax years.
In more serious cases involving concealment or falsification, a heavier penalty may apply.
Interest Charges on Late Tax Payments
In addition to the late filing penalty, interest (entaizei / 延滞税) is generally charged on unpaid tax.
The applicable rate changes over time. For 2026, the rate is generally 2.8% per year for the initial period and 9.1% per year after that period, although the exact calculation depends on the applicable dates and circumstances.
This interest is separate from the late filing penalty.
Frequently Asked Questions
What happens if I file my Japanese tax return late?
If you file your Japanese tax return (kakutei shinkoku) after the deadline, you may be required to pay a late filing penalty in addition to the tax you owe. Interest charges may also apply depending on how late the return and payment are made.
What is the penalty if I file voluntarily after the deadline?
If you voluntarily file your tax return before receiving advance notice of a tax audit, the late filing penalty is generally 5% of the unpaid tax.
This is one reason why it is usually better to correct a missed filing voluntarily rather than wait for the tax office to contact you.
What happens if the tax office discovers the late filing during a tax audit?
The late filing penalty is generally higher if you file after receiving notice of a tax audit or after the audit has begun.
For recent tax years, the penalty can reach 30% on part of the unpaid tax, depending on the amount of tax and when the late return is filed. Heavier penalties may apply in cases involving concealment or falsification.
For the detailed rates, please see “Filing After Notice of a Tax Audit” above.
Will I also have to pay interest on the unpaid tax?
Yes.
In addition to any late filing penalty, interest charges generally accrue on the unpaid tax from the original due date until payment is made. The applicable interest rate is determined by law and may change over time.
Can I go to jail for not filing a tax return in Japan?
Generally, no.
Most late filing cases result in financial penalties rather than criminal prosecution. However, intentional tax evasion, fraudulent tax returns, or other serious violations of the tax laws may result in criminal penalties in severe cases.
Can your office help if I have missed the filing deadline?
Yes.
We regularly assist foreign individuals and business owners who have filed late or have not yet filed their Japanese tax returns.
As an accounting firm in Japan providing English support, we can help you prepare the necessary tax returns, communicate with the Japanese tax authorities when appropriate, and consider practical ways to minimize penalties where legally possible.
The information below may also be helpful.
Drawbacks of Not Filing Taxes in Japan
About Our Accounting and Tax Services in Japan
Our accounting firm in Japan has extensive experience supporting foreign individuals and business owners who need help with the Japanese tax system.
We provide professional accounting and tax services in Japan with English support, including tax return preparation, accounting, tax planning, and assistance with tax audits.
In addition to accounting and tax services, we work closely with trusted specialists to support your business in areas such as:
– Visa and immigration procedures
– Company registration
– Social insurance
– Legal matters
We also collaborate with professionals in web marketing, website development, and business consulting tailored to the Japanese market.
All services are available in English.
If you have missed the deadline for a Japanese tax return or are unsure how the tax system in Japan applies to your situation, please feel free to contact us for an initial consultation.