GUIDE · PAYROLL TAX
Payroll withholding tax in Japan
給与の源泉徴収Gensen choshu — the tax you hold back from salaries
Once your company pays salaries — including to you as a director — it must withhold income tax and pay it to the tax office every month, or twice a year if you are small.
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Normal deadline
10th
Of the month after payment
Small employers
2× a year
Fewer than 10 people paid
Special dates
Jul 10 / Jan 20
With tax office approval
First step
Notify
Salary-paying office, within 1 month
The basics
- Withhold income tax from each salary and bonus payment
- Pay the withheld tax by the 10th of the following month (if it falls on a holiday, the next business day)
- The same applies to fees you pay to some professionals, such as tax accountants and lawyers
- Notify the tax office that you opened a salary-paying office within one month of starting to pay salaries
The twice-a-year option for small employers
If you pay salaries to fewer than 10 people on a regular basis, you can apply to the tax office for the special payment rule (納期の特例). Once approved:
| Tax withheld in | Pay by |
|---|---|
| January – June | July 10 |
| July – December | January 20 of the next year |
It covers tax on salaries, retirement payments and certain professional fees. If you grow to 10 or more people, you must notify the tax office.
Related guides
- Hiring and social insurance — pension and health insurance deductions
- Taxes for new companies — the notifications you file after registration
- Attendance and payroll software — calculates withholding for you
FAQ
When do I pay withholding tax on salaries in Japan?
By the 10th of the month after you pay the salary. Small employers with fewer than 10 people can apply to pay twice a year, by July 10 and January 20.
Do I withhold tax on my own director’s salary?
Yes. Salaries paid by your company to directors are salaries for withholding purposes.
What is the special payment rule for withholding tax?
An approval from the tax office that lets employers with fewer than 10 people on payroll pay withheld tax twice a year instead of monthly.
Sources
- No.2505 Withholding tax deadlines and the special rule — National Tax Agency
- For new withholding agents (新たに源泉徴収義務者になられた方へ) — National Tax Agency
This page is a plain-English summary, not legal advice. The official Japanese guidelines always take priority.
NEED HELP IN ENGLISH?
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Zeirishi and sharoshi who run payroll for foreign-owned companies — in English.
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USEFUL TOOLS
- Kintai Cloud — attendance tracking for small businesses ↗Japanese-language service
- Zeirishi.com — find a tax accountant (free enquiry) ↗Japanese-language service
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