What is the grace system?
The grace system for municipal taxes* is that taxpayers will be granted grace of tax payment for up to one year by applying to the tax office if taxpayers are in special circumstances such as they are likely to face difficulty continuing business or maintaining standard of living by paying the municipal tax in a lump sum, or they have lost their assets due to disasters.
Under the current laws, there are "Grace of asset conversion (Municipal Tax Collection Act Article 15 and 15-2 )" . In addition, "Special grace of tax payment (Special grace)" has been established for taxpayers whose income has decreased considerably due to influence of the novel coronavirus disease.
* Click here for more information on Municipal taxes
Note: Methods of tax payment are followings:
- (1)defer payment for one year
- (2)make installment payment during the grace period depending on the taxpayer's financial resources.
Requirements for "Special grace"
Taxpayers who meet both of the following requirements are eligible for special grace.
- (1)decrease in their income from business, etc.* for any period (more than one month) after February 2020 by about 20 percent or more compared to the same period of the previous year due to the influence of COVID-19
- (2)facing difficulty paying their national tax in a lump sum
Special grace covers municipal taxes which are due by the date between February 1, 2020 and January 31, 2021.
Note: Special grace can be applied retroactively even when the covered municipal tax is already due and unpaid. However, the retroactive application is limited within two months from the enforcement of the applicable law.
Effects of "Special grace"
If taxpayers are granted special grace, delinquent taxes (interest on principal tax) will be fully discharged. In addition, taxpayers are not required to provide securities upon the application of the tax grace.
How to apply for the grace of tax payment (Special grace)
Please download the file of "Application form for the grace of tax payment (Special grace)" from below, and submit it to the Hanyu City Office Tax Collection Division which has jurisdiction over your address by the due date of the tax payment** of the national tax which you apply for a tax grace.
Concerning how to fill out the application form, please refer to the video (Japanese language) below. Also, please contact "Tax Collection Division".
In light of preventing the congestion of the office, we would appreciate it if you submit the application electronically by "el-tax(Japanese language) ", or by mail.
** For two months from the enforcement of the applicable law, the grace of tax payment (special grace) can be applied for even when the covered national tax is already due.
- English description of application form for the grace of tax payment (Special grace) [XLSX：93KB](Hanyu City application form in English.)
- Application form for the grace of tax payment (Special grace) (Japanese language) [PDF：970KB] (Hanyu City application form）
- Application form for the grace of tax payment (Special grace) (Japanese language) [XLSX：83.9KB](Hanyu City application form）
- How to fill out the application form (for Special grace) (PDF/907KB) (Please refer to this national tax example for the entry fields.)
This video(Example of national tax system) is linked with "the National Tax Agency Video Channels" at YouTube, and a separate window will open.
Please be aware that some contents in this video such as those of an application form etc. might differ from the latest ones.
Even when you are not eligible for the Special grace, you may be granted grace pursuant to the current grace system.
Please check following leaflet. Also, please contact the Hanyu City Office Tax Collection Division.
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