What this setting means

The Semi-Annual Withholding special provision (納期の特例) allows businesses to consolidate their monthly withholding tax (源泉所得税) payments into just two payments per year. Normally, income tax withheld from salaries must be paid by the 10th of the following month. With this provision, payments for January through June are due on July 10, and payments for July through December are due on January 20 of the following year.

Who should enable this

Enable this if all of the following conditions are met and you have filed the application: • You pay salaries (the "Pays Salaries" setting is enabled) • You have fewer than 10 regular employees receiving salary • You have submitted 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 The provision takes effect from the month following the application. It significantly reduces administrative burden for small corporations and sole proprietors (個人事業主).

Related dates