- July 13, 2023
- Posted by: Aki Kojima
- Category: Individual & Self-Employed
Hello to all our readers! Today, we’re diving deep into a topic vital for every self-employed individual in Japan – the tax calendar. This guide will clearly understand the various tax deadlines throughout the year. Let’s dive in!
Kickstarting the year, January brings the fourth deadline for the residence tax. This is a local tax for individuals residing in Japan as of January 1st. While you can pay it all at once, it can be divided into four payments. This tax is based on the previous year’s income. Additionally, if you own a business with depreciable assets, January is your reporting deadline. And for those eligible for exceptions to withholding tax obligations, the six-month filing deadline is also in January.
February marks the fourth deadline for the property tax, a local tax imposed on land, houses, and depreciable assets used for business purposes.
March is a pivotal month with the income and consumption tax deadlines. By March 15th, you should have settled your income tax based on the previous year’s earnings. Meanwhile, March 31st is the deadline for the consumption tax, applicable to goods and services if you fall under the taxable bracket.
April sees the first deadline for property tax. If you’ve opted to pay your income and consumption taxes via bank transfers, the deductions will be made automatically this month.
Vehicle owners, take note! May 31st is when the automobile tax is due, an annual obligation for every vehicle owner in Japan.
By June 30th, you should be ready for the first deadline for the residence tax. If you’d instead not split the payment, you can settle the entire amount in June.
July brings the first deadline for the income tax prepayment and the second for the property tax. The prepayment system allows you to pay a part of your estimated tax for the ongoing year. You can also opt to split this payment into two.
August is packed with the second residence tax deadline, the first for the individual enterprise tax (a local tax for individual businesses), and the consumption tax prepayment (if your last year’s tax exceeded 4 million yen).
For those who’ve chosen direct debit for their consumption tax, the bank transfer will occur in September.
October sees the third deadline for the residence tax, marking the third of the four annual payments.
November is reserved for the second deadline of the individual enterprise tax and the income tax prepayment.
Rounding off the year, December brings the third deadline for the property tax, with the final payment due in February.
And there you have it – a comprehensive tax calendar tailored for self-employed individuals in Japan. Staying updated with these deadlines is paramount to avoid any penalties. If you found this guide beneficial, please share it with others who might find it helpful. For a more detailed tax schedule and other tax-related content, don’t forget to visit our website. Until next time, stay informed and stay ahead!