Taxes (Zeikin)
Consumption Tax (Shohi-zei)
This is the tax imposed on purchases and various services.
Income Tax (Shotoku-zei)
Income tax is imposed on individual income earned between January 1 and December 31 of the previous year. A document “Tax Withholding Statement” is issued by the employer (salary payer), and it certifies the amount of one's annual income and income tax withheld for the year. It is required for various applications, so it should be kept in a safe place.
In the following situations, you may be entitled to receive a refund of withheld taxes by filing a final return.
- If the total amount of your annual income is less than the minimum taxable annual income predetermined by the government.
- If you left your position in the middle of the year, did not get another position during the rest of the year and, therefore, did not get a year-end adjustment.
- If the total medical expenses you have paid for the year exceeds the amount predetermined by the government.
- If you received a loan for purchasing a home.
- If you have losses stemming from a disaster, theft, etc.
- If your income source is other than employment income, if you have two or more sources of employment income, or if you have other income in addition to employment income, you are required to file for final tax returns. You must calculate your income for the previous year, file a final return and pay the taxation bureau between February 16 and March 15.
Residential Tax (Jumin-zei)
This is a tax imposed on residents or legal entities in Japan as of January 1 of the year, and consists of prefectural taxes and municipal taxes. The amount of the residential tax is determined based on annual income from the previous year.
Vehicle Tax (Jidosha-zei)
As of April 1 of the year, this tax is imposed on the owners of vehicles with an engine displacement of over 660cc. The prefecture will send a tax payment notification to the owners in early May. The tax must be paid by May 31.
Light Vehicle Tax (Kei-jidosha-zei)
This tax is imposed on motorcycles and small vehicles with an engine displacement of less than 660cc. Owners of the vehicles as of April 1 are subject to the tax. It must be paid by the due date indicated in the tax payment notification.
Other Taxes
There are various taxes beyond those mentioned above. For example, inheritance tax (Sozoku-zei), donation tax (Zoyo-zei), property acquisition tax (Fudosan-shutoku-zei), and the property tax (Kotei-shisan-zei), etc.