National and local government bodies in Japan have the residents bear the costs of providing public services and facilities, necessary for the livelihood of the people, by levying taxes.
Taxes can be broadly categorised into national and local, direct and indirect, and regular and special.
Income tax is levied by the central government from your income.
The tax laws are applied to all residents of Japan regardless of nationality - if you work your are obliged to pay income tax.
However, foreign residents income tax burden depends on the period of residence.
Income tax is imposed on individual income earned between January 1 and December 31 of the previous year.
Taxable income is total gross income minus deductible expenses.
From your income, the payer of your salary (such as the company president) is required to withhold income tax from your monthly salary and pay it to the Japanese government.
The total amount of income tax one has paid for the year is recalculated, and the total income tax balance is adjusted in the December salary in a year-end adjustment (nenmatsu chosei／年末調整).
Certificate of tax withholding at source (gensen choshu hyo／源泉徴収票) is issued by the employer (salary), and it certifies the amount of one's annual income and income tax withheld for the year.
It is required for various applications, so it should be kept in a safe place.
In the following instances, you may be entitled to receive a refund of withheld taxes by filing a tax return: When the total amount of your annual income is less than the minimum taxable income predetermined by the overnment.
When you have left your position in the middle of the year, did not get another position during the rest of the year and, therefore, did not get a year-end adjustment.
When the total medical expenses you have paid for the year exceeds the amount predetermined by the government.
When you have a home loan for purchasing a home.
When you have losses stemming from a disaster, theft, etc.
When your income source is other than employment income, if you have two or more sources of employment income, or if you have other income in addition to employment income, you are required to file for final tax returns.
You must calculate your income for the previous year, file a tax return and pay the taxation bureau between February 16 and March 15. This form is available at the local taxation bureau or the taxation division of any municipal office, in Iwaki the Citizen's Tax Division (shiminzeika／市民税課TEL: 23- 7426), Level 2, Iwaki City Hall.
If you have employment income only, salary payers (such as a company president) withhold the residential tax determined by Iwaki City from your income every month, and pay it to the Citizen's Tax Division.
This is a tax imposed on residents or legal entitles in Japan as of January 1 of each year, and consists of prefectural taxes and city taxes.
The amount of the residential tax is determined based on your annual income from the previous year.
Resident Tax is a regional tax levied in proportion to your income and is different to income tax.
You must pay Resident Tax in Iwaki if you are residing in Iwaki as of January 1 each year.
However foreign residents' responsibility for paying this tax depends on the period of their stay in Iwaki. A foreign resident who leaves Japan for good or for longer than one year is required to:
a) Designate a tax agent, and report this to the head of the local taxation bureau.
b) File a final return by yourself and pay the tax by the date of departure.
RESIDENCY TAX INCOME
Permanent Resident:All incomeNon-Permanent Resident:Income from sources in Japan Income from sources outside JapanJapanese Citizens:Tax paid in Japan ・Income from foreign countries Non-Resident:No tax is payable for non-residents Residency tax income includes both people who have already been in Iwaki for a year, and those who have not been in Iwaki for a year but are expected to stay for more than a year for work or other purposes.
PAYMENT OF RESIDENT TAX
The Citizens' Tax Division (shiminzei-ka / 市民税課; TEL: 22-7426) located on the 2nd floor of City Hall in Taira, will calculate the amount of tax payable by you and send you a notice.
You must pay this amount by the date on the notice at any bank.
TAXES IN YOUR HOME COUNTRY
You may also have tax obligations in your home country.
Contact your embassy or federal tax department for more details.
WITHHOLDING OF TAX AT INCOME SOURCE
In principle each taxpayer should declare their total income over the year (January 1 to December 31), in a final tax return and pay the necessary taxation by March 15 of the next year.
However, most salaried workers do not have to lodge a return as tax is deducted from their pay and calculations are managed by the employer.
Iwaki Tax Office (iwaki zeimusho／いわき税務署)
6-3 Hishikawa-Machi, Taira, Iwaki City (いわき市平字菱川町6-3) TEL: 23-2141
STATEMENT OF EARNINGS (gensen choshu hyo／源泉徴収票)
- Net salary from January to December (including tax for those who pay tax in Japan)
- Amount remaining after deducting tax exemptions from
- For those who do not pay tax, the amount of tax exemption = 30 ％＋￥180,000
- For those who pay tax, the amount of tax exemption = 20 ％＋￥540,000
- Amount deducted based on Social Life Insurance and payments
- Amount of Income Tax paid
- Amount of Social Insurance paid (Health Insurance and Pension Insurance)
AUTOMOBILE TAX AND AUTOMOBILE INSURANCE
You are required to pay the following taxes: Automobile Acquisition Tax (jidosha shutokuzei／自動車取得税)
Paid only once when you buy a car
Automobile Tonnage Tax (jidosha jyuryozei／自動車重量税)
Levied according to the weight of the car and paid at purchase and subsequent inspections
Automobile Tax (jidoshazei／自動車税) or Light Vehicle Tax (kei jidoshazei／軽自動車税)
Must be paid by owners as of April 1 each year
For Automobile Tax enquiries contact the Iwaki Regional Promotions Bureau, Prefectural Tax Department (iwaki chiho shinkokyoku kenzeibu／いわき 地方振興局県税部 TEL:25- 6025), in the white building next to City Hall in Taira.
For Light Vehicle Tax Enquiries, contact City Hall, the Citizens' Tax Division (shiminzeika／市民税課 TEL:22- 7428) or any of the Branch Offices (shisho／支所).
City Exchange Section, Division of Coordination and Citizenry Affairs
TEL : 0246-22-7415 FAX : 0246-22-7609 Email Enquiries