Financial Terms
じぜん事前かくてい確定とどけで届出きゅうよ給与
Pre-Determined Officer Compensation (with Advance Filing)
Definition
Pre-Determined Officer Compensation (Jizen Kakutei Todokede Kyūyo) is a mechanism under the Corporate Tax Act for making director bonuses tax-deductible. A notification must be filed with the tax office within 1 month of the shareholders' resolution (or 4 months from the start of the fiscal year, whichever is earlier). The payment must match the filed date and amount exactly — any deviation makes the entire amount non-deductible.
Examples
役員賞与を損金に算入するには、事前確定届出給与として届出が必要です。
To make director bonuses tax-deductible, they must be filed as pre-determined officer compensation (事前確定届出給与).