Understanding & Filing Your Taxes

Income Taxes

In Japan

Your Japanese income tax should be deducted from your salary every month and your taxes filed by your Contracting Organization. If you are exempted from income taxation in Japan, make sure to give all the necessary documents to your employer as soon as you arrive AND to resubmit in subsequent years if needed.

In Your Home Country

It is your responsibility to file your taxes in your home country and to declare your foreign-earned income. Around January, you will receive your Japanese Tax Statement (源泉徴収票). You will need it to file your taxes in your home country, so make sure to hold on to it. If you need help understanding your tax slip, please consult this link.

If you are required to submit an official translation of your Japanese Tax Statement for an audit, we recommend getting in touch with your country’s embassy/consulate in Japan. They might be able to provide an official translation for free, or to refer you to a certified translator.

If you are American, we highly recommend checking out the awesome U.S. Tax Guide put together by Kumamoto JET.

Residence Tax

Residence tax is calculated on the basis of your salary for the previous fiscal year in Japan. As such, you will only start paying residence taxes at the end of your first year on JET (in June). Depending on your CO, you might be asked to make lump payment(s) or monthly installments. At the end of your second year, your residence tax will increase drastically compared to your first year. That’s perfectly normal. It’s because your first residence tax bill is based on 5 months of salary (August to December), whereas your second residence tax bill is based on a full year salary (January to December). Thankfully, after that first jump, your bill should only increase slightly every year.

Please note that even if you are paying your residence tax monthly, you will most likely have to do a lump payment at the end of your last year on JET to cover the previous year’s residence tax before leaving Japan.

For more information on the residence tax, as well as some nifty charts and visual supports, visit this Tokyo JET wiki page.

Car Taxes

If you own a car, you have to pay an annual tax every May. The exact amount varies based on the type of car that you possess. It can range from around 5000yen (for Kei cars) to 56,000yen (for 3 litre cars). Make sure that you know how much you owe and that you pay it on time every year.

For more information, consult this Sendai AJET page on owning a car in Japan.