Japan — Business: Annual Compliance

Key facts

• Corporate tax, local corporate tax, corporate inhabitant tax, enterprise tax and special local corporate tax are filed in a final return due within two months from the day after the end of each taxable year.
• The income and tax amounts on the return must follow the accounts approved by the general meeting of stockholders.
• An extension of the filing deadline is possible with tax office approval when the audit or account settlement cannot be completed, or where the articles set a later AGM date; a longer extension exists for companies with an accounting auditor that cannot hold the AGM within three months.
• The payment deadline is not extended even if filing is extended, and interest applies to the extended period.

Steps

1. Prepare financial statements — Balance sheet, income statement, statement of changes in equity, cash flow statement, per Japanese GAAP (or IFRS if eligible).
2. Hold shareholders' general meeting — Present annual report including business report and profit appropriation proposal.
3. File corporate tax returns — Within 2 months of fiscal year-end, covering all applicable national/local taxes simultaneously.
4. Complete statutory audit if required — Mandatory above capital/liability thresholds or for listed/FIEA filers.

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