Seventh Sense Group

Akasaka 2-12-10

Tokyo, 107-0052

Monday to Friday

9:00 ~ 18:00

Interim Tax (Japanese taxes)

Want to know more about the Japanese tax regulations for your tax return? Check out our video and get in touch with us at Seventh Sense Group!

Interim tax

In Japan, individuals who are required to file a tax return must do so by March 15th each year.

When they file, if their tax prepayment calculation base is 150,000 yen or more, they must pay the tax in an amount equal to one third of the tax prepayment calculation base. This is called “Interim Income Tax”.

Interim tax calculation base

The tax prepayment calculation base is estimated on the basis of the amount of income tax levied on the previous year’s gross taxable income, but there are some taxable incomes that don’t apply. This includes capital gains, occasional income, miscellaneous income and other temporary income that wasn’t classified as miscellaneous income. It also doesn’t include the tax withheld from salary, so you will need to deduct it.

Tax bills

The interim tax is paid in 2 instalments, one in July and one in November. Tax bills are issued by 15 June of the year in which the interim tax is calculated.

Application for reduction

If it is expected that the taxpayer will not be able to pay the interim income tax, it is possible to apply for reduction of the tax. But as might be expected, there are few categories in which the taxpayer must fall under at least one of them. The local tax office will decide whether to approve or reject the application.

For more information, please feel free to contact us at Seventh Sense Group!

Follow Us on Social Network

Latest Posts

Get some free advice

Company establishment and accounting can be complicated in Japan.
Don’t do yourself, we’re here to help.

Get in touch for  a free consultation.