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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.
Industries Laws Codes Notes
Government
Comm_terms_law
Construction
Manufacturing
Retail_agriculture
Services

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.

  • Comm_terms_law
  • Construction
  • Manufacturing
  • Retail_agriculture
  • Services
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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 30 days for other services to public entities. If the terms are not specified in contract then the default payment term is 15 days from receipt of invoice.

  • Government
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NOTES

The Designation of Specific Unfair Trade Practices by Large-Scale Retailers Relating to Trade with Suppliers by the Japanese Fair Trade Commission does not apply specific maximum payment terms to the industry but it does restrict delayed payment in response to certain disputes.

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