Overview

If previous year's income tax exceeded ¥150,000, the tax office sends a notification (予定納税額の通知書) around mid-June with the pre-calculated amount. First installment payment is due by July 31. A reduction application can be filed July 1-15.

Schedule

Every year on 7/31 (or next business day)

Applicability

• Applicable to: Individual

Authority

Additional Details

Estimated income tax (予定納税) is a system for prepaying income tax based on the prior year's tax amount. It applies when the estimated tax base amount (予定納税基準額) — the tax on regular income (business income, real estate income, etc.) minus withholding tax credits — is ¥150,000 or more. The tax office sends a notification of the estimated tax amount by June 15. One-third of the base amount must be paid as the 1st installment by July 31. If current-year income is expected to be lower than the prior year due to business decline, a Reduction Application (減額申請書) can be filed between July 1 and 15.

Penalties for Non-Compliance

Estimated tax is a payment obligation, not a filing obligation. Therefore, no failure-to-file penalty (無申告加算税) is imposed. However, failure to pay 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). Continued non-payment triggers a demand notice (督促状), and failure to pay within 10 days may lead to seizure proceedings (滞納処分).

Legal Basis