7. Taxes (ZEIKIN)
In Japan, there are more than 50 different kinds of taxes. Listed below are majortaxes which are especially important to foreigners living in Japan.
◆ Income Tax (SHOTOKU ZEI)As a general rule, income tax is imposed on yearly personal income earned fromJanuary 1st to December 31st. Under Income Tax Law, how much and how to pay
this tax differ between residents and non-residents. (See next page.)
There are 2 ways of paying this tax.
① Statement of Earning System (GENSEN CHOSHU SEIDO)
Employers calculate one's annual salary and figure out how much tax is
imposed on it. The calculated tax for a year is divided by 12 (months) and this is
deducted from one's monthly salary.
If one has additional income outside of work, it must be reported to thetaxation office between February 16th and March 15th. Extra tax will becharged on this additional income.
② Self Reporting Taxation System (SHINKOKU NOZEI SEIDO)This is for those who run their own business. Calculate your annual income,determine the amount of tax owed on it, report to the taxation office and pay thetax.
※ As mentioned above, an employee's tax is calculated based on their annual
income from the previous year. It is possible, however, that the calculation
may sometimes be incorrect. At the end of the fiscal year, the tax is recalculated resulting in either an additional "tax to pay" or a refund to theemployee. In Japan an employee is not required to file a tax return as it iscompleted by their employer.
Every employee receives a document called "GENSEN CHOSHU-HYO" bythe end of January, issued by the company. It states the total amount of theincome and how much income tax is withheld from the previous year. This is
an important document to state one's annual income and its tax, and needed
for final income tax return. Please keep it in a safe place.
《Final Income Tax Return》 (KAKUTEI SHINKOKU)
Even if one is an employee, the following persons need to file a final income tax
return and report their actual income to the taxation office from February 16th toMarch 15th.

① Those whose annual income is more than 20,000,000 yen.
② Those who receive income from more than 2 places.
③ Those whose additional income is more than 200,000 yen.
Resident or Non-resident
Under Japanese income tax law, taxpayers are divided into the following groups.
(1) Residents . . . Those who have a registered place of residence in Japan for
more than a year.
① Non-permanent residents . . . Those who do not intend to live in Japan
permanently and have had residence in Japan for less than 5 years.
② Permanent residents . . . Those to whom ① do not apply(2) Non-residents . . . All others

Tax obligations(a) Non-permanent Residents ( ① ) . . . Primary income and additional income
within Japan and income received from overseas(b) Permanent residents ( ② ) . . . All received income(c) Non-residents . . . All income received from a Japanese source◆ Resident Taxes (JUMIN ZEI)

(city tax, prefectural tax)
Resident taxes are paid by local inhabitants for public expenses.
There are 2 kinds of resident taxes (city and prefecture tax).
They are imposed on individuals who have an address in Toyohashi as ofJanuary 1st, and based on one's earnings during the previous year.
There are 2 ways of paying these taxes.
① Special Payment (TOKUBETSU CHOSHU)
Most company employees get a certain amount of money deducted fromtheir monthly salary. (The total charge for the year is divided by 12months.) The deductions are made from June to May of the following year.
② Normal Payment (FUTSU CHOSHU)
Company employees for whom ① does not apply, those who run theirown business (shops, agriculture, etc.) and receive bills issued by the cityand pay them 4 times a year (in June, August, October and the followingJanuary).

◆ Consumption Tax (SHOUHI ZEI)

(national tax)
Imposed on sold products and services. The tax is added to the actual price ofproducts and services.

◆ Car Tax (JIDOUSHA ZEI)

(prefectural tax)

Imposed on car owners.
◆ Small Car Tax (KEI JIDOUSHA ZEI)

(city tax)

Imposed on motorcycles and small cars with yellow number plates whose
engine size is less than 660cc.
《 It is recommended to pay taxes through your bank account 》
To avoid forgetting payments and to save time going to banks, it isrecommended to pay taxes through your bank account.
・How to apply . . .

There are application forms at city banks.
When applying, please bring your bankbook and personalseal (inkan) registered with your account.

・ Where to apply . . . bank branches in the city or post offices.
(Even if you leave Japan, unpaid taxes must be paid.)

For More Information●National Taxes

Toyohashi Taxation Office(TOYOHASHI ZEIMUSHO)
111 Daikoku cho, Toyohashi
TEL: 0532-52-6201(refer to p.109)●Prefectural Taxes

Aichi Prefectural Higashimikawa Regional Office(HIGASHIMIKIWA JIMUSHO)
5-4 Haccho dori, Toyohashi(refer to p.109)
TEL: 0532-54-5111●City Taxes

Toyohashi City Hall Residents' Tax Division(SHIMINZEI-KA)
1 Imahashi cho, Toyohashi(refer to p.109)
TEL: 0532-51-2197