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Payment Terms Legislation In Japan

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Japan

Please see below for a summary of payment terms in Japan and the various industries across which payment term legislation appears. You can also download a summary of all Japanese payment terms by clicking the button below.

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Industries Laws Codes Notes
Construction
Manufacturing
Retail/Agriculture

LAWS

The Subcontract/Shitauke Act is aimed at payments from larger companies to smaller subcontractors, with a maximum term of 60 days. Company size thresholds and payment criteria vary across industries.

  • Construction
  • Manufacturing
  • Retail/Agriculture
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Prevention of Delay in Payment under Government Contracts (Act No. 256 of 1949) sets a maximum term of 40 days for government construction projects and 10 days for other services to public entities.

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