- July 8, 2023
- Posted by: Aki Kojima
- Categories: Individual & Self-Employed, Corporations
Hello, dear readers! Today, we’re delving into a unique aspect of the Japanese tax system – the special provision related to withholding income tax due date. This is crucial information for you if you’re a business owner or an HR professional in Japan. Let’s get started!
The Typical Due Date
In Japan, income tax withheld at the source, such as from salaries, is generally due by the 10th of the month following the payment. This responsibility isn’t limited to individual income tax; corporations must ensure timely payments.
The Exception: Special Due Date Provision
However, there’s a special provision for businesses with a smaller workforce. If a company consistently has fewer than ten employees receiving salaries, they can benefit from the ‘Special Due Date Provision.’ Under this provision, businesses can pay the withheld income tax for six months in one go.
![Employee Graphic](#) – *A graphic showing a small group of employees.*
To avail of this special treatment, businesses must submit an application form to the tax office. The form is titled ‘Application for Approval of Special Due Date for Withholding Income Tax’ or in Japanese, “源泉所得税の納期の特例の承認に関する申請書.”
Payment Schedule Under the Special Provision
Here’s a quick look at the payment schedule for businesses under this provision:
– For salaries paid from January to June: Taxes are due by July 10th.
– For salaries paid from July to December: Taxes are due by January 20th of the subsequent year.
Scope and Limitations
It’s essential to understand that this provision is specific to income tax withheld from salaries, retirement allowances, and fees for professionals, such as actors and translators. Other types of withheld income tax don’t qualify.
![Income Sources Graphic](#) – *A graphic showing various income sources with eligible ones highlighted.*
If a business no longer fits the criteria for this provision, it must inform the tax office using the appropriate notification form.
![Notification Form Graphic](#) – *A graphic of the notification form.*
A Word of Caution
Businesses must be diligent about adhering to these deadlines. Any delay in paying the withheld income tax can result in a penalty tax. It’s always best to stay informed and avoid any unnecessary charges.
![Warning Graphic](#) – *A graphic showing a warning sign and potential penalty fees.*
Understanding the nuances of the tax system can save businesses a lot of hassle and money. We hope this guide on the particular due date provision for withholding income tax in Japan was insightful. If you found this article beneficial, please like, share, and subscribe to our blog for more informative content. Until next time, stay informed and make wise financial decisions!