Setting up business in Japan ~The documents to be filed for tax purpose~ ③


※ All the below documents should be filed to the national tax office

◎ Consumption tax purpose ◎

1. Report on the Selection of Taxable Proprietor Status for Consumption Tax  (if necessary)

(Filing Due Date)

The election becomes effective from the next fiscal year of the year in which the application was made. (Or the end of first fiscal year of the establishment) Once this election has been made, it cannot be cancelled unless an “Application to reverse the election to be taxpayer” has been filed (at least two years after the election was made).


Company automatically becomes a consumption taxpayer for a fiscal year in the following cases:

  1.   i) Taxable sales of the base year (2 years prior to the current year) is 10 million or more.
  2.   ii) In each of the first two years post-establishment, if its capital is 10 million yen or more on the first day of the relevant year.


◎ Withholding tax purpose ◎

1. Notification of Establishment of a Salary-Paying Office

(Filing Due Date)    Within one month after the date of commencement


Your company is required to withhold income taxes on payroll and professional fees.

2.  Application for Approval Made in Relation to the Special Provision for Due Dates

(Filing Due Date)

No due date, however it will be applied from the next month of the application filing date


Basically your company has to pay withholding income tax monthly. In case that the number of employees is under 10, your company can choose to pay withholding income tax twice a year (July and January)


As the above, there are various and complicated tax documents to be filed at the initial stage of setting up business in Japan. We can support your start-up concerning accounting, labor, and tax-related tasks.