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Taxes
Everyone living in Japan must pay taxes, regardless of their nationality.
How to pay taxes
People working in a corporation or institute
If you are hired by a corporation or institute that has been assigned the function of withholding income taxes by the Tax Office and withholding city taxes by the City Government, and if your salary has income and local taxes automatically deducted, you do not have to pay taxes separately to the Tax Office, unless you have another income than that from the corporation or institute mentioned above.
People who do not work for a corporation or institute, or who work for some agency that is not authorized to withhold taxes, or who do not have taxes deducted from their salaries:
You must declare your income every year and pay income taxes (the national tax), the prefectural tax, and the city tax. Also, if you manage a business by yourself, you have to pay an enterprise tax.
Types of taxes
Income tax
If you do not have income tax deducted from your salary automatically, you have to submit a final declaration of income. Final returns must be submitted between February 16 and March 15 each year. (If the starting or ending date falls on a Saturday or Sunday, the next Monday will be the starting or ending date for that year). Please submit the declaration to a tax office in your residential area. Final return forms are available at all tax offices.
If you purchase a house using a loan from a bank, have large expenses due to a disaster, or have heavy medical expenditures due to a serious illness, your taxes due may be reduced.
There are special rules concerning income taxes that apply because of tax treaties between Japan and some other nations. For details, please contact the support desk at the Osaka National Tax Agency (TEL: 06-6945-0030) or the consulate of your home country.
Prefectural and city taxes
Civil tax division (TEL: 620-1614)
All residents of Osaka Prefecture must pay prefectural and city taxes, regardless of their nationality. The amount to be taxed is a total amount of your income in the last year minus applicable deductions. When you submit your final income tax declaration, you do not need to submit any other declaration. If you do not submit a final declaration and do not get any salary, you still have to declare your income for the last year before March 15 of each year to the headman of your city, town, or village, wherever you lived on January 1st of that year. These taxes are calculated by the local government where you lived on January 1st, and will be deducted from you salary for June, for residents who have income from salary. Those residents who should pay taxes but do not have taxes deducted from their salaries will receive a statement of payment in June. You have to pay this by yourself, through a bank or other agent that is authorized to receive tax payments.
If you leave Ibaraki City in the middle of a year, you still have to pay your city tax for that year. Therefore, when you leave Japan, please contact the Civil Tax Division at the City Office before you leave.
Certificate of tax payment will be issued as follows.
Municipal fixed property tax
Property Tax Division (TEL: 620-1615)
If you have real estate (land, a house, depreciating assets) you have to pay a fixed property tax to local government where these items are located. The tax will be calculated on the basis of the assessed value of the real estate, and a statement for payment will be sent to you each year. Please pay through a bank or other institute that can accept tax payments, as describe in the statement for payment.
Other taxes
In Japan, a 5% sales tax is charged when purchasing any item or service.
If you buy real estate or an automobile or if you own an automobile, other taxes will be charged.
