Does a late tax return affect screening for permanent residence?
Foreigners Employment Support Organization (FESO) ／ Published ／ Last updated
This article is a translation of the Japanese original. Where the two differ, the Japanese version prevails.
Read the Japanese original（日本語版を読む）
Answer
If your tax return was late, or if something was left out of it, this may have a large effect on screening for permanent residence. This is because it may be treated as a failure to carry out your public duties. If you are thinking of applying, please first speak with a tax accountant, file an amended return, pay what is owed, and prepare a written explanation setting out what happened.
What is this enquiry about?
An enquiry from a company employee in his 10th year in Japan, about the effect of missing the deadline for his tax return.
Subject: the effect of a late tax return on an application for permanent residence
Application type: first-time application
Situation: The enquirer is a French national, male, 40 years old. He came to Japan 10 years ago on a work visa under 在留資格「技術・人文知識・国際業務」 (Engineer/Specialist in Humanities/International Services) and still works as an engineer at an IT company. At the time of his last tax return he was outside Japan and did not know how to file, so he missed the deadline. Something may also have been left out of his tax filing.
Question: In this situation, will it affect screening for permanent residence?
Is paying tax one of the requirements for permanent residence?
Yes. Carrying out your public duties is one of the requirements, and filing and paying income tax is an important part of it.
One of the requirements for permanent residence is that you have carried out your public duties. This looks at whether you are properly doing the things a member of Japanese society is expected to do, such as paying tax and paying pension contributions. Filing and paying income tax is an important part of these public duties.
A late tax return, or something left out of a return, may therefore be treated as a failure to carry out your public duties, and it counts against you in screening for permanent residence.
What is looked at during screening?
The reason for the delay, how long it lasted and how many times it happened, the amount left out, your current tax situation, and how you have reflected on it.
The reason for the delay / Whether circumstances such as being outside Japan, or not knowing how to file, are judged to be unavoidable is a matter for the Regional Immigration Services Bureau. Not knowing the law does not necessarily make you less responsible, so please treat that point as a difficult one.
How long the delay lasted and how many times it happened / Whether this is the first time, or whether there have been similar delays in the past. How long the delay lasted.
The amount left out of the return / The larger the amount, the greater the effect on screening.
Your current tax situation / Whether you are paying your tax properly now.
How you have reflected on it / How the applicant himself thinks about the delay and the omission.
What should I do before I apply?
Speak with a tax accountant and file an amended return, finish paying what is owed, and write a written explanation setting out what happened.
Speak with a tax accountant and file an amended return First speak with a tax accountant, get an accurate picture of the delay and of what was left out, and promptly take the steps needed to file an amended return. If you do not do this, obtaining permanent residence becomes extremely difficult.
Finish paying what is owed If the amended return shows that further tax is due, please pay it promptly.
Prepare a 理由書 (written explanation) Prepare a written explanation that sets out, in detail and in concrete terms, why the tax return was late and how you think about paying tax from now on. It is important to explain the reason for the delay honestly and to convey clearly that you have reflected on it.
Show a stable situation in daily life Prepare material that shows in concrete terms that you are living a stable life, such as your current job, your income and your tax situation.
Consult in advance The place to go for advice about an 永住許可申請 (Application for Permanent Residence) is the Regional Immigration Services Bureau with jurisdiction over where you live. Please note that it is not the Legal Affairs Bureau. We recommend explaining your situation in detail at the counter and checking what points you should be careful about.
A situation like this one is a difficult one in screening for permanent residence, but by dealing with the steps above quickly and accurately, it is possible to keep the door open.
Frequently Asked Questions
Will even 1 late tax return affect screening for permanent residence?
It may. A late tax return, or something left out of a return, may be treated as a failure to carry out your public duties. The reason for the delay, how long it lasted and how many times it happened, the amount left out, and your current tax situation are all looked at together.
If I could not file because I was outside Japan, will that be accepted as an unavoidable reason?
Whether it is judged to be an unavoidable reason is a matter for the Regional Immigration Services Bureau. Not knowing the law does not necessarily make you less responsible.
If something was left out of my tax return, what should I do first?
First speak with a tax accountant, get an accurate picture of the situation, and promptly take the steps needed to file an amended return. If further tax is due, finish paying it promptly.
What should I write in the 理由書?
Explain, in detail and in concrete terms, why your tax return was late and how you think about paying tax from now on. It is important to explain the reason honestly and to convey that you have reflected on it.
This article provides general information. Immigration rules change, and outcomes depend on individual circumstances. Please check the Immigration Services Agency website or consult a qualified specialist.
This page is a translation of the Japanese original. Where the two differ, the Japanese version prevails.
