Income tax
Benefits, Systems
Withholding salary
In principle, employers must deduct income tax from their salaries. This is called withholding. Non-residents will be deducted 20.42% of salary.
Residents are deducted from the amount specified by the government depending on the amount of salary received. For those who get salary income only and continue to work until the end of December, the company will calculate income tax and the refund or will collect additional income. This is called year-end adjustment.
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Eligible People
Non-residents and residents
Individuals who have an address in Japan or those who have been living for one year or more until now are considered as residents, and others are classed non-residents.
If your employment contract clearly states an employment period is for one year or more, you will be classed as a resident upon immediate arrival in Japan. An employee on a 'working holiday' is generally always classed as a non-resident as it does not usually exceed the one year time frame.
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Payment Amount
Amount of tax
Taxable income (income - income deduction) x Tax rate - Deduction amount
| Taxable income | Tax rate | Deduction amount |
| From 1,000 yen to 1,949,000 yen | 5% | 0 yen |
| From 1,950,000 yen to 3,299,000 yen | 10% | 97,500 yen |
| From 3,300,000 yen to 6,949,000 yen | 20% | 427,500 yen |
| From 6,950,000 yen to 8,999,000 yen | 23% | 636,000 yen |
| From 9,000,000 yen to 17,999,000 yen | 33% | 1,536,000 yen |
| From 18,000,000 yen to 39,999,000 yen | 40% | 2,796,000 yen |
| 40,000,000 yen or more | 45% | 4,796,000 yen |
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Others (Note,important Points, Points)
★ If you have income other than salary, file a tax return.