For foreign residents
working in Japan

Donʼt forget to pay resident tax!
What is the resident tax?
The resident tax is a tax that must be paid to the local municipal oﬃcefor foreigners having a domicile within Japan as of January 1, and earned
income that is above a certain amount.The same applies if you leave
Japan after January 2.
If the obligatory resident tax payment due is delinquent, the taxpayer
may not be able to renew their foreign residency during the period that◆ The amount to be paid depends on the income earned from January 1 to December 31 of the previous year.
◆ There are two methods in paying resident taxes.

Salary Deductions (special collection) A company on behalf of their employees must deduct resident tax from the wages paid to employees to themunicipality. This is a general principal for employees who works for a company, and there is no need for the employee to pay the municipal oﬃce directly.

Direct payment by individual taxpayer (general collection) Each year around June, a resident will receive a notice(tax payment slip) from the municipality, stating to "Please pay the resident tax."Amount of taxes due on the payment slip shouldbe paid at a ﬁnancial institution.

Please take precautionof the following!
● When you leave your employer.

If an employee whose resident tax is withheld from their earned income through the special collection
provision leaves the employer, the unpaid portion of the resident tax can be arranged to be paid

through the general collection method. Another method is for the employer to pay the remainder of thetotal unpaid resident tax amount due to the municipality by deducting the taxed amount from theemployeeʼsearned income and retirement allowance (lump sum collection)● When leaving Japan
A taxpayer who plans to leave Japan must appoint a resident in Japan (tax agent) who will be
responsible for handling tax activities on the employeeʼs behalf, and notify the municipality
where the employee lives if unable to pay the resident tax before leaving Japan.

【Ministry of Internal Aﬀairs andCommunications Website】

https://www.soumu.go.jp/main̲sosiki/jichi̲zeisei/
czaisei/czaisei̲seido/individual-inhabitant-tax.html【Contact Information】If you have any questions, please contact your local municipal oﬃce.

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about resident tax Q & A

QIf a person having a domicile within Japan as of January 1, and earned
1 income during the previous year, does that person have to pay resident tax?
A1 Payment of resident tax is an obligation Meanwhile, in order to prevent double taxation
defined by the law.A resident having adomicile within Japan as of January 1, andearned income during the previous year, inprincipal, the resident must pay residenttaxes.However, depending on income orfamily situation, the resident may not needto pay resident taxes.

Qfrom the same salary, etc., Japan has a tax treaty
with certain countries. For international students
and others who meet certain criteria stipulated in
the treaty, the resident tax may not need to be paid.
Please consult with the local municipal office forfurther details.

How would one know whether to pay resident taxes by
2 using special collection or general collection methods?
A2 Earners who work for a company,in principal, should pay resident taxes
under the special collection provision.
Each year by May 31st, workers whoare subject to special collection

will receive a document from their employer titled“Notification of result and changes of the special
collection tax notice to income earners for the city
(ward, town, village)
and prefectural resident taxes.”

Q 3 What is the procedure to pay off using a lump collection method?
A3 If the employee leaves theemployer between June 1 and December
31, the employee needs to choose apayment method for resident taxes afterretirement.If choosing to use a lumpcollection method, inform the company
employer the intent and request that any
unpaid resident tax to be deducted fromthe employee’s earnings or retirement
allowance.

Q4

If the employee does not wish
to pay using a lump collection method,
the general collection will be
automatically applied, and will receive
an invoice from the municipality. Please
pay in accordance to the payment statement.
If the employee leaves the company between
January 1 and May 31, a lump collection
will be automatically charged or a special
collection method will be applied.

What kind of person should manage employee taxes?
Also, how does one file an application?

A4

A tax agent manages taxation
procedures such as receiving tax notices
and making payments on behalf of thetaxpayer.

The range of a person who can be designatedas a tax agent and range of documents thatthe agent can submit vary by eachmunicipality, so please contact theemployee’s local municipal office.