Regarding Estimated Tax Payments (Individuals) ②

The intense heat of summer is now upon us; how are you spending your days?
Today, I would like to introduce the mechanism of individual business tax.

Today, I will continue to introduce the topic of estimated tax payments.

○ Number of payments and schedule

Estimated tax payments are generally made in three installments per year.
Installment | Payment Deadline | Payment Amount
1st Period | July 31 | 1/3 of the previous year's tax amount
2nd Period | November 30 | 1/3 of the previous year's tax amount
Final Tax Return | March of the following year | Final settlement

*Strictly speaking, the "1st and 2nd periods" correspond to the estimated tax payments,
and any excess or deficiency is finally settled at the time of the final tax return.

○ Calculation method for estimated tax payments

The estimated tax payment amount is basically calculated as follows:
Previous year's declared tax amount × 1/3 (1st and 2nd periods)
However, an application for reduction is possible in the following cases:
Business sales have decreased significantly, or the business has closed or suspended operations.
There are special circumstances such as a disaster.

○ Regarding the application for reduction

If your current income is clearly lower than the previous year,
you can file an "Application for Reduction of Estimated Tax Payment."

By filing an application for reduction, the tax amount will be adjusted to reflect your actual situation,
which can reduce the burden on your cash flow.

The application deadlines are usually set as follows:
1st and 2nd periods: Around July 15
2nd period only: Around November 15
(These may vary depending on the year).

*Next update scheduled for 8/3 (Mon)

It has become a season where we long for the sea and the mountains.
Please take care of your health and enjoy the summer.

*For consultations, please call the number below.
Tax Accountant Corporation GEN
TEL: 03-5997-0330
Contact: Tax Accountant Naoki Tamura