What companies must handle in Oct–Dec 2026 (Reiwa 8): a dated calendarA calendar of dates companies should know from autumn to year-end (2026)
This article lines up, in date order, the changes from October to year-end 2026 (Reiwa 8) whose effective dates and deadlines can be confirmed in official materials. From October 1, the deduction rate under the invoice transitional measure becomes 70%, and from salaries paid on or after December 1 the revised income requirements for dependents apply. The withholding deadline for year-end adjustment is January 12, 2027 and the statutory report deadline is February 1.
- October 1, 2026Invoice transitional measure at 70%, purchase cap JPY 100 million (from tax periods beginning on or after October 1)
- October 2026Wage requirement for short-time workers' social insurance coverage abolished
- On or after December 1, 2026Revised income requirements apply to salaries paid; year-end adjustment is carried out
- January 12, 2027Deadline for withholding income tax on year-end adjustment (January 20 under the special provision)
- February 1, 2027Deadline to deliver and submit statutory reports such as withholding slips
Key points
- October 1, 2026: for taxable purchases from businesses that are not qualified invoice issuers, the transitional deduction rate is 70% for 2 years. The annual purchase cap per supplier (tax included) is JPY 100 million (previously JPY 1 billion), applying from tax periods beginning on or after October 1, 2026
- The 20% special rule (2-wari tokurei) ends with the tax period that includes September 30, 2026. From the next tax period, consider filing under the general method or the simplified tax method
- October 2026: the MHLW special site states that the wage requirement (monthly scheduled wages of JPY 88,000 or more) for social insurance coverage of short-time workers has been abolished
- There is no change to withholding for salaries paid through November 2026. From salaries paid on or after December 1, the revised income requirements for dependents apply, and those with relatives who newly qualify must submit a dependent deduction declaration form. Year-end adjustment in December uses the raised basic deduction and other amounts
- The withholding income tax deadline for year-end adjustment is Tuesday, January 12, 2027, or Wednesday, January 20 if the special payment-date provision is approved. The deadline to deliver and submit statutory reports such as withholding slips is Monday, February 1
What to do in practice
- Check for each supplier from October 1 whether it is a qualified invoice issuer, and review accounting settings so purchases are processed at the 70% deduction rate
- Advance collection of dependent deduction declaration forms for year-end adjustment, and enter the deadline (January 12 or January 20) in your schedule
Here are the changes to company accounting and pay from October to the end of 2026, in date order. On October 1 a tax rate rule changes, and in December comes the year-end adjustment. The deadline to pay the year-end adjustment tax is January 12, 2027, after the new year begins.
- 1. October 1The subtractable share for invoices becomes 70%
- 2. DecemberYear-end adjustment; family conditions change for pay from December 1
- 3. January 12Deadline for the year-end adjustment tax
- 4. February 1Deadline to submit withholding slips and similar reports
Points
- From October 1, the share of consumption tax you can subtract when buying from someone without an invoice becomes 70%
- December is the month for year-end adjustment. From pay given on or after December 1, some family income conditions change
- The year-end adjustment tax is paid by January 12, 2027 (January 20 for companies using the special rule)
What the words mean
- Transitional measure
- A looser rule that can be used for a while, instead of switching to the new rule all at once
- Year-end adjustment
- Recalculating at year-end the tax taken from pay during the year, so that it comes out right
- National Tax Agency (NTA) / Ministry of Health, Labour and Welfare (MHLW): NTA: Special Feature on the FY2026 (Reiwa 8) Tax Reform (Invoice System)
- National Tax Agency (NTA) / Ministry of Health, Labour and Welfare (MHLW): NTA: Notice on the 2026 (Reiwa 8) Year-End Adjustment (Leaflet)
- National Tax Agency (NTA) / Ministry of Health, Labour and Welfare (MHLW): NTA: Outline of the April 2026 (Reiwa 8) Changes to Withholding Income Tax
- National Tax Agency (NTA) / Ministry of Health, Labour and Welfare (MHLW): MHLW: Special Site on the Expansion of Social Insurance Coverage
This article previews changes that have already been decided and will take effect in the future. Effective dates and details can change, so please check the official source shortly before the date.
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.