Q.

I have long-term resident residence status and have been living and working in Nagoya for a long time.

Hearing that the fees for extending my residence status will increase significantly this year, I am considering returning to my home country, Brazil. If I do so, what happens to my tax payments?

Also, what kinds of taxes does Japan have?

 

A.

Foreign nationals living in Japan pay taxes just like Japanese citizens. There are two main types of taxes in Japan.

	Type of Tax	Where to pay?	Principal Taxes
[1]	National tax (Koku-zē)	Country -> Tax office (Zēmusho)	Income tax (Shotoku-zē), consumption tax (Shōhi-zē), etc.
[2]	Local tax (Chihō-zē)	Prefecture/municipality -> Ward offices, banks, etc.	Resident tax (Jūmin-zē) and automobile tax (Jidōsha-zē)

Here, we will cover the principal taxes and go over the tax procedures for when leaving Japan.

 

● Income tax (Shotoku-zē)

Income tax is a tax levied on wages earned from work, income earned from business, and other sources of income.

The way an individual pays income tax differs depending on whether they are employed by a company (such as a company employee) or self-employed (self-employed individual or freelancer).

 

A) If employed by a company (such as a company employee)

　The following applies for most company employees (with some exceptions):

　　- Every month, the company deducts income tax from the employee's salary and pays it to the national government on their behalf (this is called withholding tax (Gensen Chōshū)).

- At the end of the year, the company performs a year-end tax adjustment (Nenmatsu Chōsē). This is a procedure to correct the amount of income tax an individual pays each month when viewed on an annual basis. Therefore, company employees are not required to file their own tax returns (Kakutē Shinkoku). However, they may need to file a tax return if they receive salaries from two or more companies, or in other cases. Check with the tax office to learn whether or not you need to file a tax return.

 

B) If self-employed (self-employed individual or freelancer)

　　- These individuals, in principle, calculate their own income, file a tax return with the tax office, and pay income tax.

This is the process of calculating and reporting to the national government (tax office) all income earned during the year from January 1 to December 31, along with the taxes on that income.

 

　For more information, please see the National Tax Agency website.

National Tax Agency website: https://www.nta.go.jp/english/index.htm

 

● Resident tax (Jūmin-zē)

Resident tax is a tax levied on individuals who have an address in Japan as of January 1 each year and who had income in the previous year.

Resident tax is divided into prefectural tax (tax paid to Aichi Prefecture) and municipal tax (tax paid to the City of Nagoya). These two taxes are combined and paid to the City of Nagoya. The amount of resident tax an individual owes is calculated based on their income from the previous year (January to December).

E.g.)

- An individual was living in Naka Ward, Nagoya, on January 1, 2025.

- This individual has been living in Nakamura Ward, Nagoya, starting on June 1, 2025 to the present (September 2026).

↓

- The 2026 resident tax amount is calculated based on income from January to December 2025.

- This 2026 resident tax amount is paid to the municipality in which the individual was residing on January 1, 2026.

Therefore, in this example, the individual pays the 2026 resident tax to the City of Nagoya.

The individual must complete the procedure at the city tax office responsible for Nakamura Ward.

A) If employed by a company (such as a company employee)

In principle, this amount is deducted from the individual's monthly salary as resident tax from June 2026 to May 2027.

B) If self-employed (self-employed individual or freelancer)

This individual will receive a payment slip from Nakamura Ward. In principle, the tax is paid in four installments: in June, August, and October 2026, and in January 2027.

Information for foreign nationals regarding the individual resident tax system can be found on the website below.

★ Ministry of Internal Affairs and Communications website -> https://x.gd/ohfnv

 

 

★ Tax Procedures When Returning to Your Home Country ★

If you are planning to return to your home country and will no longer maintain an address in Japan, be sure to confirm the necessary tax procedures before leaving Japan.

It may be necessary to pay taxes or to file for a refund in the case of overpaid taxes.

Pay particular attention to income tax and resident tax.

 

[Income tax procedures]

If you are leaving Japan and need to file a tax return, you must either designate a tax agent (Nōzē Kanri-nin) or file your tax return (Kakutē Shinkoku) with the tax office (Zēmusho) before leaving Japan.　

*However, if you are a company employee and your employer handles your year-end tax adjustment (Nenmatsu Chōsē) before you leave Japan, there is no need to file a tax return. If you are a company employee, first make sure to check with the person responsible at your workplace.

A) If appointing a tax agent

-> If you are unable to complete your tax return before leaving Japan, or if you need to complete tax procedures after leaving Japan, you can designate a person in Japan as your tax agent.

A tax agent handles procedures such as submitting documents to the tax office and paying taxes on your behalf.

*As a general rule, only those with an address in Japan can be designated as tax agents.

　B) If not appointing a tax agent

-> In principle, you will file your own tax return and pay your taxes by the day you leave Japan.

*Even after leaving Japan, you may still need to complete procedures regarding income tax in Japan or make payments. Please be sure to confirm with the tax office responsible for your area to find out what procedures are required.

 

[Resident tax procedures (in the case of the City of Nagoya)]

If you have any outstanding resident tax payments that you have not yet paid when you leave Japan, you will need to consult with the city tax office (Shizējimusho) and complete the necessary procedures using one of the following methods.

A) If appointing a tax agent

-> If you still have outstanding resident tax payments after leaving Japan, you can designate someone in Japan as your tax agent.

A tax agent receives documents from the city tax office and pays taxes on your behalf.

*As a general rule, only those with an address in Japan can be designated as tax agents.

　B) If you pay your resident tax before leaving Japan　

-> In some cases, you may be able to pay any outstanding resident tax in a lump sum before leaving Japan.

If you are a company employee and your resident tax is deducted from your salary, please check with your employer to see if they can deduct the remaining resident tax amount from your salary in a lump sum before you leave Japan.

If you pay your resident tax using a payment slip, please consult with the city tax office responsible for the ward in which you were living on January 1st before leaving Japan.

*Depending on when you leave Japan, it may not be possible to pay your resident tax in a lump sum, so please be sure to check.

★ Important Reminder

Leaving Japan does not necessarily mean you will no longer have to pay any taxes.

Before leaving Japan, please check with the tax office regarding income tax and the city tax office responsible for the ward in which you were living on January 1st regarding resident tax as soon as possible to confirm the necessary procedures for your individual case.

 

★ Other Principal Taxes

[Automobile Tax]

This is a prefectural tax levied on individuals who own a standard-sized passenger vehicle (excluding light vehicles, motorcycles, etc.) as of April 1 each year. After receiving a tax notice from the prefectural tax office, pay the tax by the deadline at a bank, convenience store, etc.

[Light Vehicle Tax]

This is a municipal tax levied on people who own light vehicles, motorcycles, etc., as of April 1 each year.

After receiving a tax notice from the municipal office, pay the tax by the deadline at a bank, convenience store, etc.

[Fixed Assets Tax]

This is a municipal tax levied on people who own land, houses, etc., as of January 1 each year. This is to be paid after receiving a notice.

[Real Estate Acquisition Tax]

This is a prefectural tax levied when acquiring land or a house. This is to be paid after receiving a notice.

[Consumption Tax]

When buying goods or receiving services, a standard tax rate of 10% or a reduced tax rate of 8% is applied to the price of the goods or services received. *Consumption tax includes both a national consumption tax and a local consumption tax.