Penalties for Not Filing a Tax Return in Japan
YamaguchiYoshioShare
If you did not file your tax return by the deadline, you will need to file late. You may notice this yourself, or the tax office may contact you about it. A return filed after the deadline is called a "late return" (kigengo shinkoku).
When you file late, two main charges are added to the tax you originally owed:
- Penalty for failure to file (mushinkoku kasanzei): an administrative penalty for not filing on time
- Delinquency tax (entaizei): an interest-like charge based on how many days the payment is late
Filing Deadlines
| Tax | Filing and payment deadline |
|---|---|
| Income tax (individuals) | March 15 of the following year |
| Consumption tax (sole proprietors) | March 31 of the following year |
| Corporate tax and consumption tax (corporations) | Within two months after the end of the fiscal year |
If the deadline falls on a weekend or national holiday, it moves to the next business day.
Rates of the Penalty for Failure to File
The penalty is calculated by multiplying the tax due by a set rate. The rate depends heavily on when you file.
| Timing of filing | Portion up to ¥500,000 | Portion over ¥500,000 up to ¥3 million | Portion over ¥3 million |
|---|---|---|---|
| ① Within one month of the statutory deadline (conditions apply) | 0% | 0% | 0% |
| ② Before receiving advance notice of a tax audit | 5% | 5% | 5% |
| ③ After advance notice of an audit, but before the issue is identified in the audit | 10% | 15% | 25% |
| ④ After the issue is identified in an audit, or when the tax office issues a determination | 15% | 20% | 30% |
These rates apply to taxes whose statutory filing deadline falls on or after January 1, 2024.
① Filing within one month of the statutory deadline (0%)
No penalty is imposed if all of the following conditions are met:
- You voluntarily file the late return within one month of the statutory filing deadline.
- You paid the full amount of tax due by the statutory payment deadline, which is generally the same as the filing deadline.
- In the five years before the day preceding the filing date, you were not charged a penalty for failure to file or a heavy additional tax, and you did not use this one-month exception.
This exception helps people who filed late but still paid on time. The payment requirement in condition 2 is often overlooked, so be careful.
② Filing before receiving notice of a tax audit (5%)
If you file voluntarily before the tax office contacts you, the rate is a flat 5%. Once you realize you have not filed, the best thing you can do is file as soon as possible.
③ Filing after audit notice but before the issue is identified (10% to 25%)
The tax office usually gives advance notice before an audit. The audit typically begins a few weeks to about a month after the notice. If you file during this period, the rate is 5 percentage points lower than in ④. However, it is still much higher than in ②, so do not plan to wait for the notice before filing.
④ Filing after an audit, or receiving a determination (15% to 30%)
The highest rates apply if you file after an audit identifies that you did not file. They also apply if the tax office issues a "determination" (kettei), which sets the tax amount for you.
Cases Where the Rate Increases (Surcharges)
The following surcharges may be added to the rates in the table above:
- A penalty for failure to file or a heavy additional tax was imposed within the past five years: +10%
- Repeated non-filing, meaning penalties for failure to file were also imposed for the previous year and the year before: +10%
- Books were not presented or submitted during an audit, or the records were seriously inadequate: +5% or +10%
Delinquency Tax
Tax paid with a late return is subject to delinquency tax. It is charged for each day from the day after the statutory payment deadline until the day you actually pay.
| Period | Rate for 2026 |
|---|---|
| Up to two months after the payment due date | 2.8% per year |
| After that | 9.1% per year |
For a late return, the payment due date is the day you file the return. The 2.8% rate runs from the day after the statutory deadline until two months after the day following your filing date. After that, 9.1% applies. The rates are reviewed every year, and they were 2.4% and 8.7% through 2025. Pay immediately after filing to keep the delinquency tax as low as possible.
Other Disadvantages
- Heavy additional tax: If income was deliberately concealed or disguised, for example by hiding sales, a 40% heavy additional tax (juukasanzei) is imposed instead of the penalty for failure to file. With a surcharge, it can be 50%.
- Impact on blue-form filing: On a late return, the blue-form special deduction (aoiro shinkoku tokubetsu koujo) drops from up to ¥650,000 (or ¥550,000) to ¥100,000. If you file late two years in a row, your approval for blue-form filing may be revoked.
- Criminal penalties: In serious cases where someone deliberately did not file, they may face criminal penalties such as imprisonment or fines.
Summary
How heavy the penalty is depends largely on whether you act before the tax office contacts you. If you realize you missed the deadline, file and pay as soon as possible, even one day earlier helps.
