Individual Inhabitant Tax/Resident tax
Tax calculated based on the income of the last working year.
It will be taxed by municipalities that your residence certificate is registered at on the 1st of January of that year.
Even if you move to another municipality after January the 2nd, all payments will be made to the municipality where you lived as of January the 1st.
Amount of tax
Income percent: Income - Income Deduction x 10%
Per capita rate: 5,000 yen
Stock dividends and interest on deposits: Revenue x 5%
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Procedure (Method, Place, What You Need)
When the self-employed worker or the business owner does not pay the employee's residence tax all at once (normal collection)
A payment slip will arrive at your address in May or June. There is a payment deadline divided into four times in the year, the time that the payment is due will depend on your municipality. Punishments like confiscation of possessions will occur if you do not pay.
When the employer pays the employee's residence tax all at once (special collection)
The employer deducts this from the employees salary and pays it out in 12 instalments.
If you leave the company with special collection, select one of the following:
- Normal collection: After you left your job, you will pay by yourself using the payment slip sent to you. If you wish to withdraw from the account, you will need to go through the procedure at your municipality.
- Collection at once: The final salary or retirement allowance will be deducted from all payments till May of the following year and paid by the employer.
- Continued special collection: If you've already secured your next job, the salary deduction will be continued at the place of re-employment (exchange between the previous place of employment and the new place of employment).
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Others (Note,important Points, Points)
★ If you do not register in any municipality in Japan as of January the 1st of that year, you may not be taxed.
★ The tax rate is rarely different because it is determined by the ordinance of the municipality.