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Here, in the third part of our articles about kinds of taxes corporations pay, is a quick look at the tax payment schedule of companies and what means are available to remit payment to the tax office.

I. When do companies pay taxes?

Tax payment schedules vary due to the calendar or other specific tax office measures. Since companies in Japan are free to decide their fiscal year ending at any month end, certain tax compliance deadlines shift accordingly.

In Japan, the government’s financial year is from 1 April to 31 March. For illustrative purposes, we will use the case of a corporation whose fiscal year ends 31 March.

FY 2
January

Income tax withheld at source (for special cases)

FY 2
February

Fixed assets tax

FY 2
March
― end of FY 2 ―

― start of FY 3 ―
FY 3
April

FY 3
May

Corporate tax; Local corporate tax; Consumption tax

FY 3
June

Inhabitant tax (for special cases); Fixed assets tax

FY 3
July

Income tax withheld at source (for special cases)

FY 3
August

FY 3
September

Fixed asset tax
FY 3
October

FY 3
November

Corporate tax; Local corporate tax; Consumption tax (interim)
FY 3
December
Inhabitant tax (for special cases); Fixed asset tax
Monthly Social insurance; Inhabitant tax (in principle); Income tax withheld at source (in principle)

The bulk of tax burden is often in May and November. In the case of the March account settlement, a corporate tax and consumption tax returns are filed by the end of May.

In November, we pay about half of the corporate tax and consumption tax settled in May as “interim payment”.

II. How do companies pay their taxes?

There are four common methods wherein one can pay their taxes:

  • Over-the-counter payment;
  • Pay-easy payment;
  • Credit card payment thru PC or mobile phone; and
  • Account transfer payment

Take note that not all taxes can be paid with the above methods, so it is best to refer to your local tax office regarding the remittance of taxes.

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