Foreign nationals who have lived in Japan for more than one year and who earn a certain level of income are subject to the same taxes as Japanese citizens. In Japan, there are national taxes (income tax, etc.), which are paid to the national government, and local taxes (residential tax, vehicle tax, etc.) which are paid to the prefectural and municipal governments.
This is tax on personal income. If you are self-employed or run your own business, you must file an income tax return and pay taxes to the tax office. If you are employed by a company, however, usually the company will deduct the income tax from your salary.
To file your tax return, you should calculate the total amount of income you earned and the amount of tax you paid from January 1 to December 31 of that year and submit a tax declaration form to your local tax office between February 16 and March 15 of the following year. This can be done online or in person. For details, contact your local tax office.
Foreign residents who are living in Japan as of January 1 of that year must pay prefectural and municipal residential tax. The amount will vary depending on your income in the previous year. If you are employed by a company, the taxes can be deducted from your salary. If you are self-employed, you will receive a notice in June and should pay through a financial institution such as a bank or postal account or at a convenience store.
People who own a vehicle or motorbike as of April 1 of each year are required to pay a vehicle tax. When you receive the tax notice, you can pay at a bank, a convenience store, etc. If you sell or dispose of your car, be sure to complete proper procedures for changing ownership or disposal. Otherwise, you will continue to be taxed.
Consumers are taxed for purchases of goods and services. As of October 2019, consumption tax on newspapers, foods and beverages, excluding alcohol and dining out, is 8% while consumption tax on all other goods and services is 10%.
The National Tax Agency offers various information in English for taxpayers.
This guide explains what the main national, prefectural, and municipal taxes are and how to pay them.
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