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Starting Director Salary

2026

Starting Director Salary Payments: Complete Compliance Guide

Everything you need to do when a KK or GK starts paying officer remuneration (役員報酬) for the first time — whether at incorporation or later. Corporate governance, tax filings, social insurance, and ongoing obligations.

3 monthsSalary decision window
5 daysSocial insurance deadline
~8Required filings
3-4 officesFiling destinations

Overview: Why So Many Filings?

When a Japanese corporation starts paying officer remuneration (役員報酬, yakuin hōshū), obligations are triggered simultaneously across four legal domains: corporate law (shareholder/member resolutions), corporation tax law (deductibility requirements under Article 34), social insurance law (health insurance & pension), and income tax law (withholding obligations).[2][26]

The critical rule: Teiki Dōgaku Kyūyo (定期同額給与) — officer remuneration must be a fixed monthly amount, unchanged throughout the fiscal year, to be deductible for corporate tax purposes. The amount must be determined within 3 months of the start of the fiscal year.[18]
See also: Post-Incorporation Steps Guide →

Details on initial filings (incorporation notification, blue filing application, etc.)

Two Scenarios: New vs. Existing Company

Scenario A: Newly Incorporated — Paying from Day 1

Tax registrations and social insurance enrollment happen simultaneously with founding. The 3-month window for setting the salary amount starts from the date of incorporation. The corporation establishment notification and salary office notification are typically filed together.

Scenario B: Existing Company — Starting Payments for the First Time

A shareholder/member resolution is needed. The 3-month window runs from the start of the current fiscal year. If you are past this window, you must either wait for the next fiscal year or start paying with the understanding that the salary will not be deductible. Social insurance must be filed within 5 days of the first payment.

3-month rule example: A company incorporated (or starting its fiscal year) on April 1 must fix the salary amount by June 30. For a January-December fiscal year company starting payments for the first time, the deadline is March 31.[2]

Step 1: Corporate Governance (Resolution & Minutes)

Kabushiki Kaisha (KK): Shareholders' General Meeting Resolution

Under Companies Act Article 361, director remuneration must be determined by a resolution of the Shareholders' General Meeting (株主総会, Kabunushi Sōkai). Even in a one-person company the same procedure is required, but it can be done simply via a deemed resolution (みなし決議, written consent).[1]

Resolution Must Include

  • •Director name and title
  • •Monthly remuneration amount (月額)
  • •Start date of payment (支給開始日)
  • •Monthly payment date (支払日)

Meeting Minutes (議事録)

Under Article 318, minutes must be created and kept at the registered office for 10 years. There is no obligation to file them with any government office, but tax inspectors will ask to see them. For a one-person company, sign in both capacities (shareholder and director).[23]

AGM Basics article (includes deemed resolution procedures) →

Covers step-by-step deemed resolution procedure, minutes templates, and seal requirements

Minutes templates are available from the GVA corporate registration website.[20]

Step 2: Tax Office (税務署) Notifications

The following notifications must be filed with the jurisdictional Tax Office (所轄税務署). For newly incorporated companies, filing them together with the establishment notification is most efficient.

Notification of Salary-Paying Office Establishment

Deadline: Within 1 month of first salary payment ・ Filed with: Tax Office

★☆☆DetailsOfficial form

Notifies the tax office that the company is now a withholding agent (源泉徴収義務者). Mandatory for all corporations paying remuneration.[4]

Application for Special Provision for Withholding Tax Payment Deadlines

Deadline: No fixed deadline (submit ASAP) ・ Filed with: Tax Office

★☆☆DetailsOfficial form

Companies with fewer than 10 employees can consolidate withholding tax payments to twice a year (July 10 and January 20 instead of monthly). Dramatically reduces administrative burden. Ideally submit alongside the salary office notification.[6]

Notification of Corporation Establishment

Deadline: Within 2 months of incorporation ・ Filed with: Tax Office + Prefectural/Municipal

★☆☆DetailsOfficial form

New companies only. Not required if already filed. Must be submitted to both national (tax office) and local (prefectural/municipal) tax authorities.[3][14]

Application for Blue Filing Approval

Deadline: Earlier of 3 months or fiscal year-end ・ Filed with: Tax Office

★☆☆DetailsOfficial form

New companies only. Strongly recommended — enables loss carryforward (欠損金の繰越控除) for up to 10 years and other benefits.[5]

Pre-Determined Fixed Salary (Bonus) Notification

Deadline: Earlier of 1 month after resolution or 4 months after fiscal year start ・ Filed with: Tax Office

★★★DetailsOfficial form

Only required if paying a director bonus (役員賞与) in addition to the regular monthly salary. Not needed for standard Teiki Dōgaku Kyūyo only. Any deviation from the filed amount makes the entire bonus non-deductible — handle with care.[7]

View all filing deadlines on the interactive timeline →

Step 3: Social Insurance (健康保険 & 厚生年金) Enrollment

Social insurance filings are due within 5 days of the triggering event. For new companies, this starts from incorporation date; for existing companies, from the first payment date. Filed with the jurisdictional Japan Pension Service office (年金事務所).[8][19]

New Social Insurance Enrollment (Company)

Deadline: Within 5 days ・ Filed with: Pension Service

★★☆DetailsOfficial form

Registers the company itself as a social insurance-applicable workplace. Requires an original company registry certificate (登記簿謄本) issued within 90 days.[8]

Individual Insured Status Acquisition

Deadline: Within 5 days ・ Filed with: Pension Service

★★☆DetailsOfficial form

Enrolls each director individually. The premium is calculated based on the Standard Monthly Remuneration (標準報酬月額, Hyōjun Hōshū Getsugaku) bracket. My Number required.[9][13]

Dependent Enrollment Notification

Deadline: Within 5 days ・ Filed with: Pension Service

★★☆DetailsOfficial form

Only required if the director has dependents (spouse, children, etc.). Dependents are covered under health insurance at no additional premium. Income threshold for dependent recognition: under ¥1.3 million/year.[10]

Approximate Premiums (FY2025, Tokyo, Kyokai Kenpo)

InsuranceEmployeeCompanyTotal
Health Insurance~4.955%~4.955%~9.91%
Pension9.15%9.15%18.3%
Nursing Care (age 40-64)~0.9%~0.9%~1.8%

Example: For a monthly salary of ¥300,000, social insurance premiums are approximately ¥42,000 (employee) + ¥42,000 (company) = ~¥84,000/month (~¥1,008,000/year)

If remuneration is ¥0, social insurance enrollment is not possible (no basis for premium calculation). In this case, remain on National Health Insurance (国民健康保険) and National Pension (国民年金) personally.[25]

Step 4: Resident Tax (住民税) Special Collection

Resident tax (住民税, jūmin-zei) is a local tax levied by the municipality where the director lives. Employers paying salary are designated as Special Collection Obligors (特別徴収義務者) and must withhold and remit the tax monthly from salary.

First Year Treatment

In the first year of paying remuneration, there is no prior-year salary data, so special collection does not apply. The director pays resident tax personally via Ordinary Collection (普通徴収) in four installments. After submitting the Salary Payment Report (給与支払報告書) to the municipality by January 31, special collection begins from June of the following year.

Resident Tax Cycle

Special collection runs on a June-to-May cycle. Each year: submit Salary Payment Report (給与支払報告書) by January 31 → municipality sends Tax Amount Determination Notice (特別徴収税額決定通知書) by late May → withhold monthly from June through May → remit by the 10th of the following month. Companies with fewer than 10 employees can apply for semi-annual payment.[27]

Resident Tax (Monthly)Salary Payment Report

Step 5: Labor Insurance — Director-Only Companies

Labor insurance (労働保険) consists of Workers' Accident Insurance (労災保険) and Employment Insurance (雇用保険). Both cover workers (労働者), not directors. Since directors are classified as employers/managers, a director-only company has no labor insurance obligation.[16][17]

The moment you hire even one employee, you must file the Insurance Relationship Establishment Notice (保険関係成立届) with the Labor Standards Inspection Office and the Employment Insurance Workplace Establishment Notice (雇用保険適用事業所設置届) with Hello Work within 10 days of hiring.[16]
Labor Insurance EstablishmentEmployment Insurance Establishment

Master Timeline: All Deadlines at a Glance

All deadlines measured from incorporation date (or first payment date) as "Day 0".

DeadlineFilingDestinationRequired
5 daysSocial Insurance: Company + Individual EnrollmentPension ServiceYes
5 daysDependent Enrollment (if applicable)Pension ServiceRec.
1 monthSalary-Paying Office NotificationTax OfficeYes
ASAPWithholding Tax Semi-Annual ExceptionTax OfficeRec.
2 monthsCorporation Establishment Notification (new only)Tax Office + LocalYes
3 monthsFix salary amount (resolution + minutes)InternalYes
3 months or FY-endBlue Filing Application (new only)Tax OfficeRec.

Ongoing Monthly Obligations

Payroll Calculation (給与計算)

Monthly calculation: gross salary → withholding tax deduction (per NTA withholding tax tables) → social insurance premium deduction → resident tax deduction (from year 2) → net pay. Can be fully automated with freee HR's free solo plan.[15][24]

Withholding Tax Payment (源泉所得税の納付)

Standard: by the 10th of the following month (monthly). With special exception: twice a year (Jan-Jun due July 10, Jul-Dec due January 20). Online payment via e-Tax available.[6]

Social Insurance Premium Payment

Based on the monthly Premium Payment Notice from the Pension Service, due by the end of the following month. Setting up direct debit (口座振替) is strongly recommended.

Annual Obligations Calendar

WhenObligationDestination
Jan 31Salary Payment Report (給与支払報告書) — triggers special collectionMunicipality
Jan 31Statutory Report (法定調書合計表) + Withholding Tax CertificateTax Office / Director
Jul 1-10Annual Determination Report (算定基礎届) — recalculate premiumsPension Service
Jul 10Withholding tax payment (Jan-Jun, if semi-annual)Tax Office
Oct-DecYear-End Adjustment (年末調整) — reconcile annual income taxInternal
Jan 20Withholding tax payment (Jul-Dec, if semi-annual)Tax Office
The Annual Determination Report (算定基礎届, Santei Kiso Todoke) must be filed July 1-10 each year. It uses actual April-June salary to recalculate the Standard Monthly Remuneration from September. Required even for one-person companies.[11]
View all deadlines on the interactive timeline →

Automation & Tools

Payroll and HR administration for one-person companies can be significantly streamlined with freee HR. Available free with freee Accounting Starter plan and above.[24]

TaskAutomationMethod / Tool
Payroll calculationFully automatedfreee HR
Withholding tax calculationFully automatedfreee HR
Insurance rate updatesFully automatedfreee HR
Year-end adjustmentAutomatedfreee HR
Annual determinationSemi-automatedfreee generates → submit
Insurance premium paymentAutomatedDirect debit
Initial filingsManual (once)e-Tax / e-Gov
Minutes preparationTemplateGVA templates

Related Guides & Resources

Post-Incorporation Steps Guide

Establishment notifications, blue filing, GBizID, etc.

Annual General Meeting Basics

Deemed resolutions, minutes preparation & storage

White vs Blue Filing

Blue filing benefits and switching procedures

Interactive Deadline Timeline

Visual overview of all corporate filing deadlines

Related Glossary Terms

Key terms referenced in this guide. Click to view full definitions with examples.

やくいん役員ほうしゅう報酬Officer RemunerationCompensation paid to corporate officers such as directors.ていき定期どうがく同額きゅうよ給与Fixed Regular CompensationA form of officer remuneration paid in equal monthly amounts. Required for tax deductibility.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)A mechanism allowing director bonuses to be tax-deductible when filed in advance with the tax office.そんきん損金さんにゅう算入Deductible Expense (for tax purposes)Being recognized as an expense for corporate tax calculation purposes.かぶぬし株主そうかい総会Shareholders' MeetingThe supreme decision-making body of a stock company.しゃいん社員そうかい総会Members' MeetingThe supreme decision-making body of an LLC or incorporated association.ぎじ議事ろく録Meeting MinutesA document recording the proceedings of shareholders' meetings, board meetings, etc.げんせん源泉ちょうしゅう徴収Withholding (tax at source)A system where income tax is deducted at the time of salary payment.ひょうじゅん標準ほうしゅう報酬げつがく月額Standard Monthly RemunerationThe bracket-based monthly remuneration used to calculate social insurance premiums. Divided into 50 grades.しゃかい社会ほけん保険Social InsuranceA collective term for health insurance and employee pension insurance.とくべつ特別ちょうしゅう徴収Special Collection (Employer Withholding of Resident Tax)A system where employers withhold resident tax from employee salaries and remit it to the municipality.ねんまつ年末ちょうせい調整Year-End Tax AdjustmentThe process where employers recalculate and settle employee income tax at year-end.

References

  1. [1]Companies Act Art. 361 — Director Remuneration (役員報酬)(e-Gov)
  2. [2]NTA TaxAnswer No.5211 — Salaries Paid to Officers(NTA)
  3. [3]NTA — Notification of Corporation Establishment (法人設立届出書)(NTA)
  4. [4]NTA — Notification of Salary-Paying Office (給与支払事務所等の開設届出書)(NTA)
  5. [5]NTA — Application for Blue Filing Approval (青色申告の承認申請書)(NTA)
  6. [6]NTA — Special Exception for Withholding Tax Payment (源泉所得税の納期の特例)(NTA)
  7. [7]NTA — Pre-determined Officer Remuneration Notification (事前確定届出給与)(NTA)
  8. [8]Japan Pension Service — New Social Insurance Enrollment (新規適用届)(JPS)
  9. [9]Japan Pension Service — Insured Status Acquisition (被保険者資格取得届)(JPS)
  10. [10]Japan Pension Service — Dependent Enrollment (被扶養者（異動）届)(JPS)
  11. [11]Japan Pension Service — Annual Determination Report (算定基礎届)(JPS)
  12. [12]Japan Pension Service — Monthly Amount Change (月額変更届)(JPS)
  13. [13]Kyokai Kenpo — Standard Monthly Remuneration Brackets (標準報酬月額)(Kyokai Kenpo)
  14. [14]NTA TaxAnswer No.5100 — New Corporation Filing Requirements(NTA)
  15. [15]NTA — Withholding Tax Tables (源泉徴収税額表)(NTA)
  16. [16]MHLW — Labor Insurance Establishment Procedures(MHLW)
  17. [17]MHLW — Employment Insurance System Q&A(MHLW)
  18. [18]freee — Fixed Regular Salary for Officers (定期同額給与)(freee)
  19. [19]freee — Social Insurance for One-Person Companies(freee)
  20. [20]GVA — Shareholders Meeting Minutes Template for Officer Remuneration(GVA TECH)
  21. [21]RSM Japan — Notifications to be Filed Upon Establishment(RSM Japan)
  22. [22]MoneyForward — How to Determine Officer Remuneration(MoneyForward)
  23. [23]Companies Act (Full Text)(e-Gov)
  24. [24]freee HR — Solo Plan for One-Person Companies(freee)
  25. [25]Japan Pension Service — Social Insurance Enrollment Overview(JPS)
  26. [26]Corporation Tax Act Art. 34 — Officer Remuneration Deductibility(e-Gov)
  27. [27]eLTax — Local Tax Portal (地方税ポータル)(eLTax)
  28. [28]Companies Act Art. 590 — Business Execution by Members (GK)(e-Gov)