Special payment deadline rule for withholding income tax: twice-yearly payment (July 10 and January 20 of the following year), conditions and applicationSmall companies can pay the tax they hold in one lump sum every half year
As a rule, withholding income tax is due on the 10th of the month following the month of payment. A withholding agent that regularly pays salaries to fewer than 10 people can, once approved for the special payment deadline rule, pay the amount for January to June by July 10 and the amount for July to December by January 20 of the following year, in lump sums. The NTA Tax Answer is based on laws and regulations as of April 1, 2026 (Reiwa 8).
- Every month (without the special rule)Pay by the 10th of the month after payment (standard)
- Tax withheld from January to JunePay in a lump sum by July 10
- Tax withheld from July to DecemberPay in a lump sum by January 20 of the following year
- If the deadline falls on a holiday or SaturdayThe deadline is the day after the holiday
Key points
- The standard deadline is the 10th of the month following the month in which salary and similar amounts were actually paid.
- When the special rule applies: tax withheld from January to June is due July 10, and tax withheld from July to December is due January 20 of the following year. If the deadline falls on a weekend or holiday, it moves to the day after the holiday.
- It covers tax withheld from salaries, retirement allowances, and certain fees paid to tax accountants, attorneys, judicial scriveners and others.
- Submit the application to the head of the competent tax office. If no notice of rejection is received by the last day of the month following the month of submission, it is deemed approved on that day. It applies from the tax withheld in the month following submission.
- If you come to regularly have 10 or more people and no longer meet the requirement, you must submit a notification. The approval ceases to be effective from the special-rule period that includes the submission date.
What to do in practice
- If you are not using the special rule, consider submitting the "Application for Approval of the Special Payment Deadline Rule for Withholding Income Tax."
- When your employees regularly number 10 or more, submit the notification that you no longer meet the requirement.
A company normally pays the tax it held back from salaries to the government every month. But a company that usually has fewer than 10 workers can apply, and if approved, pay for half a year at once. This reduces the monthly work.
- ○Applies: A company that usually pays salaries to fewer than 10 people
- ×Does not apply: A company that usually pays salaries to 10 or more people
- ○Applies: You submitted the application form to the tax office and were approved
- ×Does not apply: It applies automatically even if you submit nothing
Points
- Companies that usually have fewer than 10 workers can use it
- Pay the January to June amount on July 10, and the July to December amount on January 20 of the next year
- To use it, you submit an application form to the tax office
What the words mean
- Withholding income tax (源泉所得税)
- Tax that a company subtracts and holds when paying salaries and the like
- Special payment deadline rule (納期の特例)
- A rule that lets you pay once every half year instead of every month
- National Tax Agency (NTA): NTA: No. 2505 Payment Deadlines for Withholding Income Tax and Special Reconstruction Income Tax, and the Special Payment Deadline Rule
- National Tax Agency (NTA): NTA: A2-8 Application for Approval of the Special Payment Deadline Rule for Withholding Income Tax
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.