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GUIDE · TAX BASICS

Taxes for a new company in Japan

新しい会社の税金の基本Notifications, deadlines and consumption tax

A new company has a short list of tax filings to make — and with Business Manager capital rules, consumption tax applies sooner than many founders expect.

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Updated October 26, 2026 · Checked against the official site by our editors

Return due

2 months

After the end of the business year

Consumption tax

Year 1

If capital is ¥10M or more

Filings

3 levels

National, prefecture, city

Help

Zeirishi

Licensed tax accountant

Notifications after you register

NotificationJapaneseWhy
Notification of corporation establishment法人設立届出書Tells the tax office your company exists
Application for the blue return青色申告の承認申請書Unlocks tax benefits such as carrying losses forward — file early, there is a deadline
Salary-paying office notification給与支払事務所等の開設届出書Needed once you pay salaries, including to yourself as a director
Consumption tax notifications消費税の届出Depends on your capital and choices such as invoice registration

You also notify the prefecture and the city (in Tokyo’s 23 wards, the city filing is not needed). JETRO notes that some tax benefits may not apply if you file late.

The corporate tax return

  • Due in principle within two months after the end of each business year
  • You choose the business year in your articles — it does not have to match the calendar year
  • An extension is possible in some cases, but interest is charged on tax paid during the extension

Consumption tax: why year one matters

Small businesses are usually exempt from consumption tax when taxable sales in the base period (two years earlier) are ¥10 million or less. A new company has no base period — but the National Tax Agency says a new company whose capital is ¥10 million or more at the start of a business year is not exempt.

Business Manager companies

Because the Business Manager status now needs ¥30 million in capital, most new foreign-owned companies on that status pay consumption tax from their first year. Plan prices, invoices and cash flow with that in mind.

Registering as a qualified invoice issuer (the invoice system) also makes a company a taxable business, even if it would otherwise be exempt.

Taxes and subsidies

  • Subsidies are usually counted as income for corporate tax in the year you receive them
  • Many programs pay the subsidy on costs excluding consumption tax
  • Clean books make the final report easier — see Accounting software

FAQ

When is the corporate tax return due in Japan?

In principle, within two months after the end of each business year. Extensions are available in some cases, with interest on the tax paid late.

Is a new company in Japan exempt from consumption tax?

Not if its capital is ¥10 million or more at the start of the business year. With the ¥30 million Business Manager rule, most new foreign-owned companies on that status are taxable from year one.

Do I need a tax accountant in Japan?

It is not required, but filings are in Japanese and mistakes can cost tax benefits. Most foreign founders use a zeirishi (licensed tax accountant), especially in the first year.

Sources

This page is a plain-English summary, not legal advice. The official Japanese guidelines always take priority.

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