Change of fiscal year / accounting period

Compulsory Procedure      
 Items   Submit to   Remarks   Due by 
Resolution of General shareholder's meeting (Amendment of Articles of incorporation) Special resolution
(Company law Article 466, Article 309 Item 2 No. 11)
By the end of fiscal year where the change has been made
Create minutes of shareholder's meeting State amendment of Articles of incorporation and no objection raised by shareholders regarding the change in accounting period Promptly after Resolution of General shareholder's meeting
Amendment of Articles of incorporation Not required changing procedure of company registration to Legal Affairs Bureau, since accounting period is one of the voluntary entries Promptly after Resolution of General shareholder's meeting
Submission of change notification forms Tax office Submit with attachment of minutes of General shareholder's meeting Promptly after Resolution of General shareholder's meeting
At the latest, submit by the due date of annual tax return of the accounting year where the change has been made.
Prefectural tax office
Municipal tax office


Tax implications      
Items After the change, Items required adjustment according to the number of remaining months till the end of accounting year
Depreciation Calculation of allowable limit for depreciation 
Calculation of applying reduced tax rate for small and medium-sized enterprises Applicable amount for reduced tax rate
Calculation of local tax Calculation of inhabitant tax on per capita basis, applicable criteria of reduced tax rate for business tax and per income levy etc.


Items Points of attention
Director's Term of services In the case of change in accounting period, board's (director's and auditor's) term of service may be terminated with the effective date of the change in the articles of incorporation. To avoid the situation, a matter of resolution for appointment of boards may generally include in resolutions of general shareholder's meeting  as well as the change in the articles of incorporation. After the election of boards, registration regarding the board change is required within 2 weeks after the inaugural date.
Resolution of director's meeting Possible case: Board resolution will be made before general shareholder's meeting
Clients, Creditors etc. Possible case: Contact to banks and clients, etc.
Licensing Possible case: Requires notification to relevant government agencies in case of license businesses
Disclosure documents Possible case: In important cases, requires notes for the change in closing date, reason for the change, and accounting period involved in the change on financial report and securities report etc.