Extended tax return filing periods
Japanese rules require companies and individuals to file tax returns no later than two to three months after the end of the calendar or fiscal year. The extremely short deadlines in Japan compromise the quality of tax filings and the working and family lives of those preparing the returns, while driving up expenditure on overtime. International comparison of the cost incurred for tax compliance shows that Japan has the highest level among developed countries.
- Extension of tax return filing periods for individual income taxes should be granted until May 30 as in other European countries. Where professional service providers are involved, a further extension by six months should be allowed. Also, the law should allow individuals to apply for further extensions in exceptional cases.