Tax System

One of the key things you’ll need to do if you’ve moved to Japan and are working is figure out how the taxation system works. Japan, like many countries, levies taxes on income and earnings, as well as charging for certain local services and applying a consumption tax on goods. Japan’s tax year runs from January 1 to December 31 and the National Tax Agency is responsible for taxation in the country. The main thing expats will have to be mindful of is which of the three taxation categories they fall into: You can check the list of tax treaties Japan has with other countries that prevent double taxation on individual income. Taxes and Tax Rates in Japan Here is a brief list of the types of tax you will have to pay in Japan, along with standard rates. If you qualify as a non-resident, you will pay a flat tax rate of 20.42% but won’t get any tax deductions. How to Pay Tax Owed in Japan Most employers and providers of the likes of pensions in Japan withhold tax from your gross monthly payments, meaning that you won’t have to deal with a tax bill yourself. However, if you…