D TAXES
If you are employed by a company or school for which you receive a salary,
earnmoney on a business or own a car or immovable property (land or house),
by law you are responsible to pay taxes. There are 2 divisions: national
tax and local tax. Local tax consists of prefectural tax and municipal tax.
Now, we will explain about taxes such as income tax, consumption tax,
inhabitant's tax and automobile tax.
@INCOME TAX (SHOTOKU ZEl) [national tax]
When you receive income during January I to December 31, you are responsible
to report and pay taxes the following year between February 16 and March 15.
However, you will not have to report taxes if you are salaried or receive bonuses
from one workplace.
That is because taxes have already been deducted from the monthly paychecks you
receive. This system is called "GENSEN CH~ SHU".
The amount of taxes paid over the course of one year may often differ from the
actual amount due. In this case, on the last payday of the year, the differences
between tax payments are calculated and year end adjustments (NENMATSU CHOSEI)
are made to complete the tax payments.
However, for a income earner who receives a salary or bonus from a company, a
fixed amount of tax is withheld when a monthly salary payment is made, etc. At
the end of the year, the annual amount of income eamed, which was levied income
taxes and depending on the [year end adjustment], will be cleared for payment of
taxes. Therefore, there is no need to file for a final income tax return.
Still,if the annual salary of an employee exceeds 20.000,000 yen, or if the
person eams an outside salary in the amount of over 200,000 yen, anyone earning
more than two salaries will be declared to file for a final income tax retum.
[Year End Adjustment] (NENMATSU CHOSEI)
It is not uncommon for the amount of income taxes levied on your annual income
earned during that year to not coincide with the total amount of taxes withheld
from your monthly salary throughout that year. For this reason, at the end of
the year when paid your last salary, and when settling your accounts, the
calculations of the total sums of taxes will either exceed or be slightly decreased.
[Final Income Tax Return] (KAKUTEI SHINKOKU)
A taxpayer making calculations on his or her total amount of monetary income or
taxes must base and declare this amount when filing to pay one's taxes.
[Total Amount of Tax Payment]
(Total Monetary Income-Total Income Deductible Expense x Tax Rate = Total
In-come Tax)
* Classification of Income Deductible Expense: Basic Deduction (380,000 yen), De-
ductible expense for Spouse, Special Deductible for Spouse, Dependant Deductible
Expense, Medical Expense Deductible, Life Insurance Deductible Expense, etc.
In terms of foreigners, tax differs on where you reside, how long and whether you
plan on settling down in Japan forever. However, foreigners who have no residence
in Japan and has not lived in Japan for more than one year (non-registered foreigner
in Japan) and has an income in Japan, will generally be deducted 20'~o of the total
income earned in Japan. Furthermore, there are exemptions on tax treaties, which
varies with different countries.
ACONSUMPTiON TAX (SHOHI ZEl) [national tax]
The prices for certain products and goods, etc., in some cases will incur directly into
the price indicated and in some cases it will not. Cases when the consumption tax is not
indicated, it will be added to the total cost.
BRESIDENTS TAX [Prefectural Citizens Tax, Municipal Citizens Tax]
[Liability to Pay Taxes]
Beginning from January I st of that year, principally, if a foreigner has resided inside
he country for over a year, eamed an income, or owned an office or house even though ot
having an address within the prefecture, are obligated to make a payment to the esiding
prefecture and municipality.
Ex.
[Total Payment]
（１） IMPOSED TAXES ON A PER CAPITA RATE
Prefectural Citizen's Tax 1,OOO yen
Municipal Citizen's Tax 2.500 yen city population over 50,000
under 500,000
2.000 yen other municipality
（２） INCOME RATE BREAKDOWN
According to the last year' s income, all income earned will be held taxable.
Anyone not earning an income the previous year, will not he held liable for
taxation. However, if you did eam an income last year and were unemployed
without income the following year, you are still liable to pay taxes for the
previous year.
Also, even if the amount eamed through the previous year's income is identical
to this year's income, but at the end of Decembcr 3lst, for any previous years
if you had a dependent child or a spouse with a low income, the amount taxable
will be lowered according to the number of children ( I child 330.000) and the
income of the spouse.
For this reason, it is necessary that you submit the proper documents stating
your dependents (spouse, children) to the payroll supervior of your company.
(Last year's income amount - income deductible expense x tax rate = income amount
eakdown)
[Method of Payment]
Income eamers have their taxes deducted from the company from their monthly
salaries beginning from this year June to next year May. For self-employed
income eamers, you must make for payments (June, Aug., Oct. Jan.) directly to
the bank with the Payment of Tax Forms sent by your municipality. For those
retuming to there home countries and have still n.ot paid resident's tax,
please be sure to make the pay-ment. Payments can bc made at your local
municipal offices.
| Prefectual Tax Rate | | Municipal Tax Rate | |
| Taxable Income Amount | Tax Rate | Taxable Income Amount | Tax Rate |
| 7.000.000 yen or less | ２％ | 2.000.000 or less | ３％ |
| Over 7.000.000 yen | ４％ | Over 2.000.000 | ８％ |
| | | Over 7.000.000 | １１％ |
(3) INHABITANT'S TAX (JUMIN ZEl) [prefectural and municipal tax]
Foreigners who are salaried employees and also have lived in Japan more
than a year as of January 1, are imposed to pay taxes based on last year's
income. Salaried employees have to pay this tax every month from June to
the next May. If you have business income, you pay the amount according to
your tax notification four times a year (June, August, October and January)
at the nearest financial institution.
CAUTOMOBILE TAX
（１）AUTOMOBILE WEIGHT TAX (JID~SHA JURYO ZEI) [national tax]
This tax is imposed when you take your car in for automobile inspec-tion (SHAKEN).
This is determined by the car's weight.
（２）AUTOMOBILE INCOME TAX (JIDOSHA SHUTOKU ZEI) [prefectural tax]
This tax is imposed when you purchase a car.
（３）LIGHT-WEIGHT VEHICLE TAX (KEI-JID~SHA ZEI) [municipal tax]
This tax is imposed on motorcycles. Iight-weight cars and small vehicles
with two wheels. You will need to pay this tax by April 30 at the municipal
office, where the vehicle is registered. When you purchase, discard, hand
over to someone else, or whenever the vehicle's name title changes, contact
the respective offices as follows :
*motorcycles---tax department of municlpal office
*light-weight vehicles/cars---Inspections Association of Light-Weight Cars
tel 0776-38-1509
(4) AUTOMOBILE TAX (JIDOSHA ZEI) [prefectural tax]
This tax is imposed on everyone who owns a car (with the exception of two
-wheeled small vehicles, Iight-weight cars, Iarge cars or unique small cars)
and has a place to park in Fukui Prefecture. The automobile tax is determined
by the exhaust fumes it generates. You will be informed through a tax
notification which must be paid by May 31 at the nearest financial institution.
The tax notification is attached to the "Certification of Automobile Tax
Payment", which documents must, by law, be presented at the car inspection. The
"Certification of Automobile Tax Payment" must be kept together with the
certification of car inspection. If you have an old car and it has no value to
you, go to the Fukui Regional Land Transportation Bureau (RIKU'UNKYOKU)
(tel 0776-34-1603) and register it as a scrap car.