1. Municipal residence tax
Municipal residence tax is collected from individual Fukuoka City residents to cover the costsof municipal administrative services. The cost of these services is shared amongst residents
according to their ability to pay.
The tax comprises two parts:
・a flat-rate part, which is paid equally by all residents; and・an income-based part, which varies depending on your income from the previous year.
Additionally, Fukuoka Prefecture has a prefectural residence tax. This tax is declared andpaid together with individual municipal residence tax to the Fukuoka City government.
Together, these taxes are generally called residence taxes.

(1) Foreign residents who must pay municipal residence tax
Foreign residents living in Fukuoka City as of January 1 must also pay municipal residence
tax. If you have an office or real estate in a ward other than the one where you live, you
only need to pay the flat-rate part of the tax to the ward where your office or real estateis located.

(2) Calculating your taxes

Municipal residence tax can be broken down as follows:
1. Flat-rate part

Municipalresidencetax

1 Income − ○2 Income deductions○
2. Income-based part = ○4 Tax rate − ○5 Tax deductions
3 Total taxable income × ○1 to ○
5 can be found below.
Information on 1., 2., and ○1. Flat-rate part

The annual flat-rate portion amount is currently ¥3,500 (plus ¥2,000 for the prefecturalresidence tax).

2. Income-based part

The income-based part is calculated as follows:
2 income deductions from ○1 income to obtain ○3 total taxable income.
First, subtract ○Multiply your ○3 total taxable income by the ○4 tax rate that applies to you.
1 Income○

Income is the amount of money (revenue) you earned from January 1 to December
31 of the previous year after direct expenses have been deducted. For example, if
you have a salaried income, deductions are based on your income level.
The taxable income of foreign residents is based on the nature and duration of theirstay in Japan. See page 4 for details.

2 Income deductions○

Income deductions are certain amounts of money deducted from your income. Thissystem adjusts the tax burden on taxpayers based on their individual circumstances,such as the presence of a spouse or dependents, extra expenses due to illness ordisaster.

3 Total taxable income○

Total taxable income is calculated by subtracting income deductions from yourincome and rounding down amounts smaller than ¥1,000.

4 Tax rate○

The tax rate for the income-based part of municipal residence tax is 8% (2% forprefectural residence tax).

5 Tax deductions○

Tax deductions are intended to prevent double taxation on dividend income andincome earned overseas.
2(3) Declaring your municipal residence tax

Individuals living in Fukuoka City as of January 1 must submit an individual municipal
residence tax declaration by March 15 of the same year. This declaration must besubmitted at the ward office where you lived as of January 1. You do not have to submit atax declaration if you: did not earn any income the previous year; only received a salaried income during the previous year, and your employer filed areport of earnings to the city on your behalf; filed a final income tax declaration to the tax authorities; or earned no more than ¥430,000 during the previous year.

(4) Due date and payment methods

Municipal residence tax is collected by one of the following three methods:① ordinary collection;② special collection from your salary; or③ special collection from your public pension.

① Ordinary collection
If you are self-employed or have resigned from a company and are receiving no salary,
the ward office will send you tax notifications (payment slips). You must use these to pay
your tax at a bank, financial institution or a convenience store in four installments (June,August, October, and January of the next year).
Paymentmonth

1st period

2nd period

3rd period

4th period

June
AugustOctoberJanuary* Payments are due by the end of the month. If the payment due date is on a Saturday, Sundayor public holiday, the due date will change to the next working day.
If you will move out of Fukuoka City or leave Japan, you must appoint a tax agent.
Furthermore, if you will leave Japan, you must pay the outstanding amount.
② Special collection from salary
If you work at a company or other organization, your employer will notify you of your tax.
Your employer will withhold the tax from your salary in monthly installments from June tothe following May. They will then pay the withheld tax to your municipal office on yourbehalf the following month.
You must ask your employer to withdraw all outstanding residence taxes from your salary
in one lump sum if you leave the company or Japan.
③ Special collection from public pensions
As of the first day of the fiscal year (April 1), if you are:
 aged 65 or older and receiving a public pension, such as old-age basic pension; and required to pay municipal residence tax
your taxes will be withheld from your pension payments based on your pension income.
The pension payer will pay the tax withheld from your pension to your local municipal
office on your behalf. This will be paid by the 10th of the month following your pension
payment.
If you have an income other than a public pension, such as from a salary, business orreal-estate, you must pay tax on that income by ordinary collection or special collection.
*Because individual residence tax is calculated based on theprevious year’s income, you may still be required to pay
municipal residence tax after you leave Japan. In thatsituation, you must appoint a tax agent (see page 8 fordetails). Before leaving Japan, check with the Tax Imposition
Section at your ward office for more information.

3(5) Taxable income for foreigners

Taxable income for foreigners is determined based on their residence status in Japan. For
taxation purposes, foreigners are categorized into “residents” and “non-residents.”“Residents” are further divided into “non-permanent residents” and “permanent residents.”

Residents: people who have a “domicile,” or have had a “residence” for one consecutiveyear or longer in Japan(Note) In general, people who have a living base in Japan are deemed to have adomicile in Japan. If you do not have a domicile but stay or live in Japan, you
are deemed to have a residence in Japan.
 Non-permanent residents: residents who do not have Japanese nationality, andwho have had a domicile or residence in Japan for less than a total of five years
within the last ten years
 Permanent residents: residents other than non-permanent residents
Non-residents: people who are not residents● Taxation conditions for the above categories are shown in the table below.
Taxable income
Category
Income from sources in Japan
Income from sources abroad
Paid in Japan Paid abroad Paid in Japan
Paid abroad
Only the part ofyour earnings
deemed to be
Non-permanent Entire amount Entire amount Entire amount transferred toresidents
taxabletaxabletaxableJapan is taxable.
Residents
Income paid andheld abroad is nottaxable.
PermanentEntire amount Entire amount Entire amount Entire amountresidents
taxabletaxabletaxabletaxableNon-residents
Taxable in principle
Not taxable(6) Tax agreements

If you are a citizen of a country with which Japan has signed a tax agreement, yourmunicipal residence tax in Japan may be reduced or exempted in accordance with theterms of the agreement.
In addition, in the case of foreign government employees, professors, foreign students, etc.,
even if they are from countries that have concluded tax treaties that do not directly
concern municipal residence tax, they are not subject to municipal residence tax onincome that is exempt from income tax.

(7) Declaring dependents that reside abroad

If you apply for deductions or the tax-free limit system for a dependent who does not havedomicile in Japan, you must attach a document of family relations*1 andremittance-related documents*2 when submitting your declaration.
*1: Examples of documents of family relations(1) A copy of the family register label, documents issued by the country or a regional
public organization, and a copy of the family member’s passport(2) Documents issues by a foreign government or a regional public organization (limitedto documents that include the relative’s name, address, and date of birth)*2: Examples of remittance-related documents(1) Documents that clearly indicate payments made from the person declaring them as adependent to the relative through currency exchanges conducted by a financial
institution(2) Documents that clarify that the relative has received an amount of money from theperson declaring them as a dependent, and that the amount is equivalent to thepurchase price of the goods by presenting a card issued by a credit card issuer andpurchase record.
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