5. Tax Penalties in Japan 附帯税

法定期限までに確定申告・納付をしなかった場合にはペナルティが課され、そのようなペナルティのことを「附帯税（penalty）」といいます。法人税に係る附帯税について英語でざっくり説明してみました。参考資料：財務省資料等

Japan has six types of penalties for national corporate income tax purposes. An overview of these penalties is as follows. For more posts about Japanese tax and accounting, click HERE:

The author of this website is not responsible for any damage or loss arising related to this website.

----------------------------------------------

附帯税

1. Interest on late paid tax without extension 延滞税　

2. Interest on late paid tax with extension 利子税　
3. Penalty for underpayment of tax 過少申告加算税　
4. Penalty for failure to file a tax return 無申告加算税　　
5. Penalty for failure to pay withholding income tax 不納付加算税　　
6. Penalty for fraud 重加算税　　

Japan has the following six types of penalties for national corporate income tax purposes as of 2021:

1. Interest on late paid tax where an extension is NOT approved (entai zei)

This is interest on late paid tax where the taxpayer has filed a return but has not paid the tax fully or partially. The interest is the sum of (1) and (2) below and is non-deductible. 

(1) For up to two-month delay 

      Tax due  x  Applicable%*  x  No. of days after payment due date / 365

      * The lower of either 7.3% or last year short-term prime lending interest rate plus 2%

(2) For the period over two-month 

      Tax due  x  Applicable%*  x  No. of days in excess of two months / 365 

      * The lower of either 14.6% or last year short-term prime lending interest rate plus 8.3% 

2. Interest on late paid tax where an extension is approved (rishi zei)

This is interest on late paid tax where a payment extension has been approved by the tax office. The interest is calculated as follows and is deductible:

Tax due  x  7.3%  x  No. of days delayed / 365

3. Penalty for understatement of tax

This is a penalty imposed on understated tax where the tax return was filed by the deadline. The penalty is 10% of the additional tax, and if the calculated penalty exceeds the greater of either the tax paid by the deadline or JPY500,000, an additional penalty of 5% of the excess amount is imposed. The penalty is non-deductible.

4. Penalty for failure to file a tax return

This is a penalty for failure to file a tax return by the filing due date. The penalty is 15% for the first JPY500,000 of the tax due and 20% of the tax due in excess of JPY500,000. If the taxpayer voluntarily pays the tax before the tax office indicates the failure, however, the rates are reduced to 5%. Also, the penalty is not applied if the taxpayer:

• voluntarily files a return within a month from the filing deadline;
• fully pays the tax due by the payment due date;
• is determined to have intended to file the return by the deadline; and
• has been subject to neither a penalty for failure to file a tax return nor a penalty for fraud for the past five years.   

5. Penalty for failure to pay withholding income tax

This is a penalty for non-payment of income tax withheld by the payment due date. The amount is 10% of the income tax due, but is reduced to 5% if the taxpayer voluntarily pays the tax due before the tax office indicates the failure.  

6. Penalty for fraud

This is a penalty imposed where any of the cases 3 to 5 applies and fraud is committed. The penalty is applied instead of the penalties 3 to 5 as follows:

• Instead of a penalty for understatement of tax, 35% of the additional tax
• Instead of a penalty for failure to file a tax return, 40 % of the tax due
• Instead of a penalty for non-payment of withholding income tax, 35% of the tax due

Local tax has similar penalties. 

------------------------------------------

会計税務についての他の記事にご興味ある方はこちらの目次をご覧ください♬

会計税務英語に関する記事です。質問、コメントお待ちしております！Google アカウントを持ってない方は、「Google アカウント」をクリックし、「匿名」か「名前/URL」を選択してからご記入ください！