Overview

All domestic corporations must file a corporate tax return based on finalized accounts and pay the tax due. Filing is mandatory even with zero or negative taxable income. An extension is available when the shareholders' meeting cannot be held in time.

Schedule

Applicability

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

All domestic corporations are required to file a corporate tax return. Filing is mandatory even when there is zero taxable income or the corporation is operating at a loss. Even with losses, note the following: • Corporate resident tax per capita levy (法人住民税均等割): A minimum annual amount based on capital and employee count (minimum ¥70,000/year) is levied regardless of income • Loss carryforward (欠損金の繰越控除): Losses from fiscal years for which a final return was filed can be carried forward for up to 10 years and deducted from future income • Blue return corporations (青色申告法人) may also request a loss carryback refund (欠損金の繰戻還付) of corporate tax paid in the prior fiscal year

Authority

Filing Methods

Additional Details

Corporate tax filing covers corporate tax and local corporate tax (filed with the tax office) as well as corporate resident tax and corporate enterprise tax (filed with prefectural and municipal tax offices, eLTAX available). The following documents must be attached to the return: • Financial statements (貸借対照表 balance sheet, 損益計算書 income statement, 株主資本等変動計算書 statement of changes in equity, etc.) • Account item breakdown schedule (勘定科目内訳明細書) — details of major assets, liabilities, revenues, and expenses • Business overview statement (法人事業概況説明書) — summary of business activities, sales, employee count, etc. • Various schedules (別表一 through 別表十六, etc.) — detailed income and tax calculations To obtain the deadline extension, the Application for Extension of Filing Deadline (申告期限の延長の特例の申請書) must be submitted to the tax office by the last day of the fiscal year. Even with an approved extension, interest tax (利子税) is charged if provisional payment is not made by the original 2-month deadline. Corporations with capital exceeding ¥100 million are required to file electronically via e-Tax for fiscal years beginning on or after April 1, 2020.

Penalties for Non-Compliance

Failure to file may result in the following penalties: • Failure-to-file penalty (無申告加算税): 15% of tax due (20% on amounts over ¥500,000, 30% on amounts over ¥3 million). Reduced to 5% if filed voluntarily before audit notice. • Delinquent tax (延滞税): 2.4%/year for the first 2 months after the deadline, 8.7%/year thereafter (Reiwa 7 special rates). • Heavy additional tax (重加算税): 40% if concealment or falsification is found (50% for repeat offenses within 5 years). Blue return approval may also be revoked (e.g., if the corporation fails to file on time for two consecutive fiscal years).

Legal Basis