The Penalty for Filing Late Tax Returns 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 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.

 

後悔している男

 

The Case When You Voluntarily File Tax Returns After The Due Date

If you voluntarily file tax returns before a tax audit, you will be charged an additional 5% of the tax due. For instance, if you owe 1,000,000 yen in taxes, the penalty would be 50,000 yen.

 

The Case of Filing Tax Returns Late Following A Tax Audit

The penalty rates after a tax audit are 15% or 20% of the owed tax amount. Furthermore, if it is determined that the failure to file was intentional, a heavy penalty, also known as a surtax, is applied at a rate of 40%.

 

The information below might also be useful to you.

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.