Tax

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Japanese Residence Tax

All residents of Japan, including foreign residents, are required to pay Residence Tax. The municipality in which you were residing in on January 1 2012 is the municipality that will administer your Residence Tax bill. The amount of Residence Tax to be paid, this includes Prefectural Residence Tax and Municipal Residence Tax, is determined by the amount of income received between January and December of the previous year, and the number of dependents you have.


How Japanese Income Tax is Calculated

The “kyuyo-shotoku-gensen-choshu-hyo” (給与所得源泉徴収票) or “income tax withholding statement” can be obtained from your place of work. Statements for the previous tax year are usually available in January each year.


Filing Income Tax Returns

All residents and salaried employees who’s total income exceeded 20 million Yen, or received income from one source in Japan and earned additional income (ex. stock dividends) exceeding 200,000 Yen (excluding retirement income), or received income from two or more sources, which was not subjected to the year-end adjustment.


Income Tax Exemptions

Taxpayers with dependents or individuals with certain circumstances may, in some cases, be eligible for tax exemptions. The following exemptions may be deducted from a taxpayer’s total annual income.


City Tax Offices from April 1, 2010

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Reporting Additional Income

I am currently working as an instructor at a language school. This year, outside of my regular salary from the school, I have received 180,000 Yen (162,000 Yen after tax) from a different company for some evening classes I taught. I heard that if you receive additional income outside of your regular salary then you don’t have to report it. Is this true?


Import Duty

With the exception of certain items (including leather goods) imported goods with a total customs value of 10,000 Yen or less are exempted from taxation of customs duty and consumption tax.


Denial of Tax-withholding Certificate

Employers who refuse to issue tax-withholding certificates, known as “GenSenChouShuuHyou” in Japanese