Overview

Semi-annual withholding tax payment for Jan-Jun period. Available to businesses with fewer than 10 employees.

Schedule

Every year on 7/10 (or next business day)

Applicability

• Applicable to: Kabushiki Kaisha (KK), Godo Kaisha (GK), Individual
• Requires paying salaries
• Requires semi-annual withholding approval

Authority

Filing Methods

Additional Details

Businesses with fewer than 10 salary recipients (常時10人未満) can apply for the semi-annual special provision by submitting the Application for Approval of Special Provision for Withholding Tax Payment Deadlines (源泉所得税の納期の特例の承認に関する申請書) to the tax office. Withholding tax on salaries, retirement allowances, and fees paid to tax accountants (税理士), lawyers, etc. during January through June is consolidated and paid by July 10. This special provision covers only withholding tax on salaries, retirement allowances, and certain professional fees. Withholding on manuscript fees (原稿料), lecture fees (講演料), etc. must still be paid by the 10th of the following month.

Penalties for Non-Compliance

The same penalties as monthly withholding tax apply: • Non-payment surcharge (不納付加算税, Art. 67): 10% (5% if voluntary; waived if paid within 1 month with clean record). • Delinquent tax (延滞税, Art. 60): 2.4%/year for the first 2 months, 8.7%/year thereafter (Reiwa 7 special rates). Since six months of withholding tax is consolidated, the payment amount is significantly larger. Adequate cash reserves should be planned.

Legal Basis