Topics | Yurakucho CPA Office (Ginza, Tokyo, Japan)
When do companies file tax returns?
You may need to know so many things if you set up a company in Japan. Tax return is one of them, so we will let you know about general ideas of when you file corporate tax returns.
Corporate tax returns?
There are many types of tax returns so it is not possible to cover all of them. But here is the common taxes that most companies need to know.
1. Corporate taxes (this includes income tax, enterprise tax, inhabitant tax, etc.)
2. Consumption tax
(This is a simplified version of corporate tax to give you an idea of when companies file tax returns)
It is important to know that companies operating at a loss may not have to pay income tax, but they may have to pay inhabitant tax and consumption tax, so tax returns are still required. Also, the loss may be carried forward to lower future income if tax returns are filed. Therefore, tax returns should be filed in any cases.
Due date for tax returns
Generally, the above Corporate taxes and Consumption tax should be filed within two months after the end of accounting period. Also, tax payments should be made by the same due date. Probably the most common accounting period in Japan is the period from April to March, so the due date is the end of May in this case.
Extension of time to file a tax return
As mentioned above, your company has two months to work on tax returns. But you may need more time to prepare the returns because of several reasons. For example, if your company's annual meeting of shareholders is held within three months after the accounting period, the financial statements cannot be approved until the meeting is held. Thus tax returns can be filed after the meeting, then your company would get a month extension of the due date. However, this extension can be available for only Corporate taxes, so there is no extension for Consumption tax. Also, the tax payment should be made by the original due date (tax is paid as prepayment).
To get this extension, you need to prepare some application called 'Shinkokukigennoenchoshinseisho, 申告期限の延長の特例の申請書' and submit it to a tax office in advance.
It is said that this extension would lead to lowering corporate taxes as your company or a tax office has more time to prepare tax returns and think about ways to save taxes.
Summary
Corporate tax (Corporate taxes & Consumption tax) returns should be made within two months after the end of accounting period.
The due date for Corporate taxes can be extended if there is a reason.