Overview

If the prior fiscal year's final corporate tax exceeded ¥200,000, an interim return must be filed for the first 6 months of the fiscal year. The filing window is within 2 months after the interim period ends. You can choose between the estimated method (予定申告, based on prior-year results) or provisional settlement method (仮決算による中間申告).

Schedule

Applicability

• Applicable to: Kabushiki Kaisha (KK), Godo Kaisha (GK)

Interim filing is required only when the prior fiscal year's final corporate tax exceeded ¥200,000. If the prior fiscal year was less than 6 months, no interim return is required. If the prior fiscal year was 6 months or more but less than 12 months, the final tax amount is annualized to determine whether it exceeds ¥200,000. No interim return is required in the first fiscal year when no prior fiscal year exists.

Authority

Filing Methods

Additional Details

There are two methods for interim filing. (1) Estimated return method (予定申告, prior-year method): The interim tax amount is 6/12 of the prior fiscal year's final corporate tax. This is the most common and simplest method. If the interim return is not filed by the deadline, it is deemed filed under this method, and the tax liability remains. (2) Provisional settlement method (仮決算による中間申告): A provisional settlement is performed treating the first 6 months of the fiscal year as a separate fiscal year, and the interim tax is calculated based on actual income. This is useful when business performance has significantly declined compared to the prior year and the estimated return amount would be an excessive burden. However, even if the provisional settlement amount exceeds the estimated return amount, you must file based on the provisional settlement figure. Interim returns for corporate resident tax and corporate enterprise tax are also required.

Penalties for Non-Compliance

If the interim return is not filed by the deadline, it is deemed filed under the estimated return method (prior-year method), and the tax liability remains. Failure to pay the interim tax by the deadline results in delinquent tax (延滞税): 2.4%/year for the first 2 months, 8.7%/year thereafter (Reiwa 7 special rates). No failure-to-file penalty (無申告加算税) is imposed on interim returns since deemed filing applies. However, delinquent tax accrues on any unpaid interim tax amount.

Legal Basis