Overview
To deduct non-regular officer remuneration (officer bonuses) as a business expense, you must report the exact amount and payment date in advance. For newly established corporations, the deadline is within 2 months of incorporation. Paying a different amount or on a different date than reported makes the entire amount non-deductible.
Schedule
Event-triggered: New corporations: within 2 months of incorporation. Existing: within 1 month of shareholders' resolution (or 4 months from fiscal year start)
Applicability
- Applicable to: Kabushiki Kaisha (KK), Godo Kaisha (GK)
Authority
Filing Methods
Additional Details
Under the Corporation Tax Act, officer remuneration is generally non-deductible. Only three types qualify for deduction: 1. Regular fixed-amount salary (定期同額給与): Same amount paid monthly 2. Pre-determined remuneration (事前確定届出給与): Amounts and dates reported in advance (effectively officer bonuses) 3. Performance-linked remuneration (業績連動給与): Meeting specific requirements When using pre-determined remuneration, the payment must exactly match the reported amount and date. Even a ¥1 difference or a 1-day discrepancy makes the entire amount non-deductible. For newly established corporations, the deadline is within 2 months of incorporation. For existing corporations, it is the earlier of 1 month after the shareholders' meeting resolution or 4 months from the start of the fiscal year.