Corporate Accounting and Tax Filing

Japan corporate tax filing obliges every KK and GK to close its books, approve financial statements, and file national plus local returns within two months after fiscal-year-end.¹² Missing that window costs surcharges and interest even when the company made no profit, which is why first-time officers treat the calendar as the core discipline.³¹

Confirm current details with official sources

Procedures, fees, and requirements can change. Confirm current details at the National Tax Agency and the Japan External Trade Organization setting-up-business guidance. This article is general information, not legal, tax, or immigration advice; for your specific case, consult a licensed zeirishi (税理士, "licensed tax accountant").

Overview

This article is for first-time officers of small owner-operated corporations in Japan, most often a 株式会社 (kabushiki kaisha, "joint-stock company") or a 合同会社 (gōdō kaisha, "LLC-type company").¹⁴ It covers the corporate tax stack, the consumption-tax registration choice, daily bookkeeping through the annual filing, and realistic zeirishi engagement.¹⁵⁶

A corporation established in Japan is generally taxed in Japan on its worldwide income, and the same filing cycle applies to a KK and a GK alike.¹ Listed-company audits, group-tax sharing, and branch versus subsidiary permanent-establishment questions sit outside this article.¹

The regime is uniform nationwide in its rules and deadlines. Prefectural and municipal inhabitant-tax and enterprise-tax rates vary somewhat by locality, so confirm the local schedule with your prefectural and municipal offices; Tokyo figures below are a worked example.¹

The Corporate Tax Stack

Corporate income in Japan carries one burden computed from several layers: national corporate tax (法人税, hōjinzei, "national corporate tax"), national local corporate tax, corporate residence tax (法人住民税, hōjin jūminzei, "corporate residence tax"), enterprise tax (法人事業税, hōjin jigyōzei, "corporate enterprise tax"), and special corporate business tax.¹ Taxable income starts from accounting profit with statutory adjustments for items such as entertainment limits, depreciation schedules, provisions, donations, and director compensation.¹

The picture below shows how the layers stack on the same income base.

National corporate tax (法人税) and the SME band

The standard national rate is 23.2 percent (as of 2025-04-01; confirm current figures with the National Tax Agency).⁷ A qualifying SME with paid-in capital of 100M JPY or less at fiscal year-end pays 15 percent on the first 8M JPY of annual taxable income (as of 2025-04-01), with the excess taxed at the standard rate.⁷¹

Eligibility has hard edges. The reduced band is unavailable to a company wholly owned by a corporation with paid-in capital of 500M JPY or more, and to certain high-income excluded enterprises (as of 2025-04-01).⁷¹ Where annual taxable income exceeds 1B JPY for fiscal years beginning on or after 1 April 2025, the first-8M band rises to 17 percent (as of 2025-04-01).⁷⁸

Two surcharges sit on top of the national computation. National local corporate tax (地方法人税, chihō hōjinzei, "national local corporate tax") runs at 10.3 percent of the corporate-tax liability (as of 2026-01).⁸ For fiscal years beginning on or after 1 April 2026, a Defense Special Corporate Tax applies at 4 percent of the standard corporate-tax amount after a 5M JPY basic deduction (as of 2026-04-01).¹⁸

Item	Rate	As of	Notes
Standard national corporate tax	23.2%	2025-04-017	Applied to taxable income after adjustments
SME first 8M JPY, income 1B JPY or less	15%	2025-04-017	Capital 100M JPY or less at year-end
SME first 8M JPY, income over 1B JPY	17%	2025-04-017	2025 reform extension
National local corporate tax	10.3% of corporate-tax liability	2026-018	Filed with the corporate return
Defense special surtax	4% over 5M JPY deduction	2026-04-011	Fiscal years starting on or after 1 April 2026

Rates in this table reflect NTA and JETRO guidance current as of the dates shown; confirm current figures with the National Tax Agency before filing.

Corporate residence tax (法人住民税)

Corporate residence tax combines prefectural and municipal portions, each with an income-based part (法人税割, hōjinzei-wari, "income-based portion") pegged to the national liability and a per-capita part (均等割, kintō-wari, "per-capita levy") driven by capital and headcount.¹ The Tokyo illustration for SMEs runs from 0.15 percent prefectural plus 0.90 percent municipal at the lowest bracket to 0.23 percent plus 1.39 percent above 8M JPY (as of 2026-01).¹

The per-capita levy is the trap for new officers. It applies even in a loss or zero-profit year (as of 2026-01).¹⁸ In Tokyo special wards the lowest band, capital of 10M JPY or less with 50 or fewer employees, is 70,000 JPY per year (as of 2026-01), rising to 140,000 JPY with more than 50 employees and to 180,000 JPY in the next capital band.¹

Budget the per-capita levy even in a loss year

A company with no profit still owes the fixed residence-tax levy, so treat the lowest-band figure as a standing cost of keeping the entity alive rather than a tax on earnings.¹⁸

Capital (Tokyo wards)	Employees	Annual levy	As of
10M JPY or less	50 or fewer	70,000 JPY	2026-011
10M JPY or less	Over 50	140,000 JPY	2026-011
Over 10M to 100M JPY	50 or fewer	180,000 JPY	2026-011

Levies in this table reflect JETRO figures current as of 2026-01; confirm current figures with the prefectural and municipal offices before budgeting.

Enterprise tax (事業税) and special corporate business tax

Enterprise tax is a prefectural levy on business activity. For SMEs on the income method, the Tokyo illustration is 3.50 percent to 4M JPY, 5.30 percent from 4M to 8M JPY, and 7.00 percent above 8M JPY (as of 2026-01).¹ Special corporate business tax (特別法人事業税, tokubetsu hōjin jigyōzei, "special corporate business tax"), a national tax collected alongside it, is illustrated at 1.30 percent, 1.96 percent, and 2.59 percent across the same brackets (as of 2026-01).¹

Enterprise tax paid is deductible in computing the following year's taxable income, which pulls the effective rate below the statutory sum (as of 2026-01).¹⁸ JETRO illustrates combined effective rates of about 21.37 percent to 23.17 percent on SME income to 8M JPY and about 33.58 percent above 8M JPY for business years starting April 2021 to March 2026, rising roughly one point under the defense surtax from April 2026 (as of 2026-01).¹

Corporations with stated capital over 100M JPY, plus certain subsidiaries captured by the FY2024 reform from FY2025 to FY2026 onward, face size-based pro-forma enterprise tax on added-value and capital bases in addition to income.¹ Ordinary small KK and GK stay on the income-based method described above.¹

Consumption Tax: The Registration Question

Consumption tax (消費税, shōhizei, "consumption tax") runs on a separate registration logic from the income stack above. The standard rate is 10 percent, made of 7.8 percent national plus 2.2 percent local (as of 2026-01; confirm current figures with the National Tax Agency), with a reduced 8 percent for qualifying food, drink, and subscription newspapers.⁵⁹

The decision below is the one most small firms revisit under the invoice system.

The 10M JPY exemption and its exceptions

Enterprises whose base-period taxable sales are 10M JPY or less are exempt from consumption-tax filing and liability as 免税事業者 (menzei jigyōsha, "tax-exempt enterprise").⁵ The base period is the fiscal year two years prior.⁵

Three exceptions remove the exemption. Paid-in capital of 10M JPY or more at incorporation makes the company taxable from year one for two years.⁵ First-half sales or salary payments of the prior year above 10M JPY do the same.⁵ Newly established corporations are otherwise generally exempt for their first two fiscal years.⁵

Consumption-tax returns follow the corporate calendar. They fall due within two months after the tax period end, in principle the fiscal year-end.⁵ A filer whose corporate deadline is extended by one month may extend the consumption-tax filing by one month on notification.⁵

Why exempt firms register anyway

An exempt firm may elect taxable status by advance notification, and registering as a qualified invoice issuer (適格請求書発行事業者, tekikaku seikyūsho hakkō jigyōsha, "qualified invoice issuer") makes the firm taxable regardless of base-period sales.⁵ Since 1 October 2023, buyers generally need that qualified invoice to credit purchase tax, with transitional relief letting buyers deduct an 80 percent equivalent from October 2023 to September 2026 and 50 percent to September 2029 (as of 2026-01).⁵

A newly taxable small issuer may instead pay 20 percent of output tax rather than computing actual input for periods falling between 1 October 2023 and 30 September 2026 (as of 2026-01).⁵ The commercial pressure behind the election is straightforward. Taxable B2B clients absorb unrecoverable tax on an unregistered supplier's invoice, so procurement teams now ask issuer status before renewal.⁵ Whether registration pays depends on client mix and filing cost for your specific situation; a zeirishi can model the trade-off from your sales ledger.

Books, Statements, and the Annual Filing Cycle

Corporate returns come in white-form and blue-form (青色申告, aoiro shinkoku, "blue return"), and blue requires prior approval from the tax office.¹ Blue carries the benefits that matter most to young companies, notably net-loss carryforward up to 10 years for losses from business years starting on or after 1 April 2018.¹¹⁰

Daily bookkeeping and blue-return status

Blue filers keep double-entry books capable of producing a balance sheet and a profit-and-loss statement, and retain records for 7 years in principle.¹⁰ Carryforward works only where a blue return was filed in the loss year and returns are filed every subsequent year without a break.¹¹⁰ SMEs with capital of 100M JPY or less may offset 100 percent of income with carried losses while larger corporations are capped at 50 percent.¹ Qualifying SME blue filers may also carry a loss back one year for a refund of prior-year corporate tax.¹¹⁰

Timing decides the first year. A new corporation wanting blue from its first year applies by the earlier of three months after incorporation or the end of its first fiscal year.¹¹⁰ An existing corporation applies by the day before the target fiscal year starts.¹ Returns are e-filed through e-Tax for national tax and eLTAX for local tax where stated capital exceeds 100M JPY; smaller firms may still e-file voluntarily.¹

Term	Reading	Gloss
青色申告	aoiro shinkoku	blue return, the approval-based filing status
白色申告	shiroiro shinkoku	white return, the default filing status
繰越欠損金	kurikoshi kessonkin	carried-forward loss

Year-end close and the 2-month filing deadline

The annual sequence runs from close to approval to filing. Figures entered on the return follow the statement of accounts approved by the general meeting of shareholders.¹ A KK convenes its annual meeting within 3 months of year-end while a GK has members approve statements with more flexibility.¹³

Corporations file final returns for corporate tax, local corporate tax, inhabitant tax, enterprise tax, and special corporate business tax within two months from the day after fiscal year-end, and pay the computed tax within the same period.¹² Corporations with fiscal years over six months also file an interim return within two months after the first six months and pay interim tax, skipped where the computed amount sits below the statutory floor.¹

An extension defers paperwork, not payment

Where accounts cannot settle in time, the tax-office director may approve a one-month filing extension, or two months for group filings.¹ The payment deadline does not move, and interest accrues on tax paid during the extension.¹

Even a dormant company with no revenue and no employees must still file corporate returns, maintain its registered address, and hold at least a minimal annual meeting.³ Non-filing draws automatic penalties, and long neglect can lead to compulsory dissolution.³ Late filing without an approved extension also draws a non-filing surcharge plus delinquency tax and can forfeit loss carryforward for the year.³

Working With a Zeirishi

Most small KK and GK outsource books oversight and the corporate return to a licensed zeirishi.⁶ Only a registered zeirishi may prepare, file, or advise on tax returns and represent the company in an NTA audit.⁶

What the retainer covers and what it costs

The standard billing model pairs a monthly retainer (顧問料, komonryō, "monthly advisory retainer") covering routine advice, bookkeeping oversight, and withholding management with a year-end settlement fee (決算料, kessanryō, "year-end settlement fee") covering close and corporate filings at 4 to 6 times the monthly amount (as of 2026-07-30; confirm current figures with prospective firms).⁶

Market bands run from 20,000 to 50,000 JPY per month at Japanese-only local firms (as of 2026-07-30), from 50,000 to 150,000 JPY per month at English-speaking boutiques (as of 2026-07-30), and from about 11,000 JPY per month on startup-focused minimal-transaction plans (as of 2026-07-30).⁶ The 30,000 to 80,000 JPY monthly band in this article's scope sits inside observed small-company ranges before the separate year-end charge (as of 2026-07-30).⁶ Consumption-tax returns are commonly billed separately at 55,000 to 110,000 JPY (as of 2026-07-30), and quoted fees generally exclude 10 percent consumption tax on the fee itself (as of 2026-07-30).⁶

Item	Market band	As of	Notes
Monthly retainer, local firm	20,000 to 50,000 JPY	2026-07-306	Routine advice plus books oversight
Monthly retainer, English-speaking boutique	50,000 to 150,000 JPY	2026-07-306	Foreign-founder clientele
Year-end settlement fee	4 to 6x monthly retainer	2026-07-306	Close plus corporate filings
Consumption-tax return add-on	55,000 to 110,000 JPY	2026-07-306	Commonly billed separately

Bands in this table reflect a 2026 pricing survey current as of 2026-07-30; confirm current figures with prospective firms before budgeting.

Confirm the settlement-fee multiplier before signing

A 50,000 JPY monthly quote with a 5x settlement fee means about 850,000 JPY true annual cost rather than 600,000 JPY.⁶ Ask for the total annual figure, the consumption-tax treatment, and what the consumption-tax return costs, in writing.

Good to know

A loss year still produces a tax bill

The per-capita residence-tax levy, 70,000 JPY per year at the lowest Tokyo band, is owed even where the company made no profit (as of 2026-01; confirm current figures with the prefectural and municipal offices).¹ Founders who equate a loss with no tax miss this fixed levy plus any size-based enterprise-tax base, so budget it as a standing cost of the entity.¹

Missing the blue-return application narrows your options

Blue approval for a new corporation falls due by the earlier of three months after incorporation or the end of the first fiscal year.¹¹⁰ Missing it defers blue benefits, notably 10-year loss carryforward, to a later year.¹¹⁰ File the blue application alongside the establishment notifications rather than after the first close.¹

The filing extension extends filing, not payment

The one-month extension defers the return, not the cash. Estimate and pay by the original two-month deadline or face interest on the balance.¹ Founders who hear that an extension was granted and pause payment convert a paperwork delay into an interest charge.¹

Capital size at incorporation shapes years of tax bills

Setting paid-in capital at 10M JPY or more forfeits the first-two-year consumption-tax exemption from day one, while staying above 100M JPY forfeits SME income-based enterprise treatment and the 15 percent band (as of 2026-01).¹⁵ Generous capitalization for visa or banking optics therefore carries a multi-year tax price. Model the capital figure before registering it; a zeirishi can compare the trade-off for your planned income path.¹⁸

Your fiscal year-end choice sets your annual calendar

Corporations may choose any 12-month fiscal year in the articles of incorporation.¹ March 31 aligns with the Japanese business calendar while December 31 aligns with many foreign parents, and every filing and interim deadline counts from that date.¹ No ward-level variance exists in the deadline arithmetic itself; confirm only the local rate schedule with the prefectural and municipal offices.¹

See also

• Registering as a Sole Proprietor (Kojin Jigyounushi)
• Hiring Your First Employee
• Side-Business While Employed: What's Allowed
• The Incorporation Process
• Business Manager Visa Requirements for Founders
• The Tax Office (Zeimusho) and the e-Tax Portal

References

Footnotes

1. Japan External Trade Organization (JETRO). 「3.3 Overview of corporate income taxes (corporate tax, corporate inhabitant tax, enterprise tax)」. Setting Up Business in Japan, Section 3. https://www.jetro.go.jp/en/invest/setting_up/section3/page3.html ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹² ↩¹³ ↩¹⁴ ↩¹⁵ ↩¹⁶ ↩¹⁷ ↩¹⁸ ↩¹⁹ ↩²⁰ ↩²¹ ↩²² ↩²³ ↩²⁴ ↩²⁵ ↩²⁶ ↩²⁷ ↩²⁸ ↩²⁹ ↩³⁰ ↩³¹ ↩³² ↩³³ ↩³⁴ ↩³⁵ ↩³⁶ ↩³⁷ ↩³⁸ ↩³⁹ ↩⁴⁰ ↩⁴¹ ↩⁴² ↩⁴³ ↩⁴⁴ ↩⁴⁵ ↩⁴⁶ ↩⁴⁷ ↩⁴⁸ ↩⁴⁹ ↩⁵⁰ ↩⁵¹ ↩⁵² ↩⁵³

2. PwC. 「Japan Corporate: Tax administration」, Worldwide Tax Summaries, reviewed 2026-08-07. https://taxsummaries.pwc.com/japan/corporate/tax-administration ↩ ↩²

3. VLO Law Firm. 「Annual Compliance Requirements for Companies in Japan」, published 2026-06-16. https://vlolawfirm.com/guides/annual-compliance-requirements-for-companies-in-japan ↩ ↩² ↩³ ↩⁴ ↩⁵

4. 国税庁 (National Tax Agency). 「Corporation Income Tax (English index and Outline PDF)」. https://www.nta.go.jp/english/taxes/corporation/index.htm ↩

5. Japan External Trade Organization (JETRO). 「3.6 Overview of consumption tax」. Setting Up Business in Japan, Section 3. https://www.jetro.go.jp/en/invest/setting_up/section3/page6.html ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹² ↩¹³ ↩¹⁴

6. e-zeirishi.com (TaxMatch Japan). 「How Much Does a Tax Accountant Cost in Japan? Pricing Guide for Foreigners (2026)」, updated 2026-07-30. https://e-zeirishi.com/en/tax-accountant-fees-japan-foreigners-pricing-guide/ ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹ ↩¹⁰ ↩¹¹ ↩¹²

7. 国税庁 (National Tax Agency). 「No.5759 法人税の税率」. NTA Tax Answer, current as of 2025-04-01. https://www.nta.go.jp/taxes/shiraberu/taxanswer/hojin/5759.htm ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷

8. Kato Tax Advisory. 「Japan Corporate Tax Rates: A Complete Guide」, last updated May 2026, applicable to fiscal years beginning on or after 1 April 2025. https://kato-taxadvisory.com/en/corporate-tax-rates/ ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸

9. 国税庁 (National Tax Agency). 「Information about Consumption Tax (English index)」. https://www.nta.go.jp/english/taxes/consumption_tax/index.htm ↩

10. AQ Partners (Yuga Koda). 「Blue Form Tax Return in Japan: Benefits and Requirements」, published 2026-02-12. https://www.aqpartners.jp/blog/blue-form-tax-return-japan-benefits-requirements ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷