Hello, this is K from Sayu CPA Office.
Today, I’d like to introduce the newly launched “Automatic Direct Payment” system, which became available starting from tax filings with statutory payment due dates on or after April 1, 2025.
If you’ve ever thought, “Tax payments are always such a hassle…”, this new method may be the perfect solution for you.

1．What’s different from the prior “Direct Payment”, ダイレクト納付?

Until now, there was a system called “Direct Payment.” With this method, after submitting your tax return via e-Tax, you needed to check the Message Box, retrieve the “Payment Classification Number Notice,”, 納付区分番号通知, and then designate a payment date to initiate the payment.

With Automatic Direct Payment, all you need to do is check the box that says “Use automatic direct payment” when submitting your payment slip/return via e-Tax. The tax amount will then be automatically withdrawn on the statutory due date.  Please note that even if you’ve extended your corporate or consumption tax filing deadlines, the withdrawal still occurs on the original due date (two months after the fiscal year-end).

In short, what used to be a two-step process has now been simplified into one step.

(the prior) Direct Payment:

1. Submit the tax return via e-Tax.
2. Check the Message Box for the “Payment Classification Number Notice” and designate a payment date.
   → Payment is withdrawn on the specified date.

Automatic Direct Payment:

1. Submit the tax return via e-Tax (and check the box for “Use automatic direct payment”).
   → Payment is withdrawn on the statutory due date (even if the filing deadline has been extended, original due date applies)

2．After trying it myself…

It was extremely convenient!
For example, for withholding income tax, which must be paid monthly, the usual two steps—(1) transmitting filing data and (2) specifying the payment date—are now reduced to just (1) filing the data and checking the automatic direct payment option.
It may seem like a minor difference, but for people juggling many tasks, this can be a meaningful time-saver.

3．Points to keep in mind…

1. You must submit the “Application and Notification Form for National Tax Direct Payment via Electronic Method”, 国税ダイレクト方式電子納税依頼書兼国税ダイレクト方式電子納税届出書, to the tax office in advance (in paper form; for individuals, submission via e-Tax is also accepted) in order to use the Direct Payment and/or the Automatic Direct Payment.
2. If you initiate Automatic Direct Payment on the same day as the statutory due date, a payment limit applies. Also, if the withdrawal fails due to insufficient funds, interest penalties may apply until payment is completed from the following day.
3. If you file on the statutory due date, the withdrawal will take place on the next business day. If the withdrawal succeeds on that day, no penalties (such as delinquent or additional taxes) should be incurred.
4. If you’ve extended your filing deadline, you can only use Automatic Direct Payment if you file on or before the original statutory due date. The withdrawal date will still be the original due date, not the extended one.
5. Unfortunately, as of now, this system is only available for national taxes. Local taxes are not yet supported.

Currently, since it’s only applicable to national taxes, Automatic Direct Payment is particularly useful for taxes like withholding income tax and consumption tax. However, for corporate tax, things might get a bit confusing due to coordination with local taxes.
If local taxes become compatible with this system in the future, it could lead to even greater reductions in administrative work.