Japanese individual tax

We provide Japanese, U.S. citizen, Greencard holders and expatriates with the tax services of Japanese individual tax.

• Preparation of Japanese individual income tax returns
• Arrival and departure meeting for expatriates
• Assist of tax payments
• Tax estimated computation
• HYPO computation
• Tax agent duties etc.

Overview of Japanese tax for individuals

Resident Status

The Japanese Income Tax Law provides the scope of taxable income in accordance with resident status. Therefore, first of all, you should know your resident status. Resident status is classified into Resident and Nonresident. Resident is further divided into Non-permanent resident and Permanent resident

The following is a brief explanation of resident status.

• (1) Resident
  A person who has a "JUSHO"(domicile) in Japan or has had a "KYOSHO"(residence) in Japan for one year or more.
  NOTE：Generally speaking, you have a "JUSHO" in Japan if your principal establishment for living is in Japan and you have a "KYOSHO" in Japan if you are staying or living in Japan without "JUSHO".
• (i) Non-permanent resident
  A resident who does not have Japanese nationality and has lived in Japan for less than five years in the last ten years.
  Non-permanent resident is taxed on Japanese source income and foreign source income remitted into Japan or paid in Japan.
• (ii) Permanent resident
  A resident other than a non-permanent resident. Permanent resident is taxed on world wide income.
• (2) Nonresident
  A person other than a resident. Non-resident is taxed on only Japanese source income.

Where and when

You are required to file your final tax return to the tax office which has jurisdiction over your "JUSHO" or "KYOSHO" during the period from February 16 to March 15 and to pay the tax by March 15.
In case you are leaving Japan without designating a tax agent to administer your tax affairs, you must file your final tax return and pay the tax by the time of your departure from Japan.

If your "basic tax amount to be prepaid in a year" comes to \150,000 or more, you are required to pay your estimated tax. And the amount will be notified by the tax office before the first payments.

NOTE: "basic tax amount to be prepaid" is, in short, the tax on total taxable income less the tax withheld in the preceding taxable year.
The estimated taxes are to be settled by filing the final tax return for the year.

If you need more details, please access Japanese tax authority Homepage.

2021 Japanese Income Tax Table (National)

2021 Inhabitant Tax Table

Tax at the income rate

Inhabitant tax rate will be 10% regardless of the amount of the income. ( Fixed rate)

Fee estimate of the preparation of Japanese income tax return

Our fee estimates are based on the following assumption:

Standard fee (a non-permanent resident) is for one that only has salary income paid in Japan. Standard fee (a permanent resident) is for one that only has salary income, interest, dividends and a few stock transaction. Instruction and simple tax computation sheet will be provided with the returns in English.

If you need expatriate package, please contact us. The package includes tax agent services, gross up services etc.