Estimated income tax prepayment is an advance payment made in installments before the final tax amount for the year is calculated and confirmed. This payment is based on the previous year’s tax and is settled when filing the final tax return for the current year.
When is it Due?
If the estimated prepayment amount, based on regular income from the prior year, is ¥150,000 or more , a notice will be issued by the district director of the tax office responsible for your residential address by June 15.
One-third of this “base amount of estimated income tax prepayment” is due in each installment: the first from July 1 to July 31, and the second from November 1 to November 30.
If the scheduled tax payment is not made, a late payment penalty will be charged from the day following the due date until the date of payment.
Q&A
Q: I’m from abroad and worked for a company in Japan. I recently filed my final individual tax return, but I left Japan in April. I received a notice for the estimated income tax prepayment in June. Do I need to pay it? I currently only have foreign-source income.
A: Estimated income tax prepayment is required only for residents for tax purposes, with residency status determined as of June 30. If you have no Japan-sourced income after leaving Japan and are classified as a non-resident as of June 30, you are not required to pay the estimated income tax prepayment.
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