InJapan, there are taxes that generally apply to everyone, such as income tax, residents’ tax (prefectural and municipal government tax) and consumption tax. There are also taxes which only apply to certain people, such as fixed assets tax and automobile tax. This section will deal with the three general types of tax: income tax, residents’ tax and consumption tax.
Income Tax (National)
This tax is levied based on personal income for the year (January 1st to December 31st) and there are two ways to pay it:
(1) File a personal tax return after calculating your income, expenses and amount of tax due
(2) Employers calculate the amount of income tax and subtract it from employees’ salaries every month.
In the latter case, employees rarely need to submit any extra documentation, but in the following cases, it may be necessary to file a tax return to receive a tax refund:
● If medical bills exceed a certain amount
● If you have been a victim of crime or natural disaster
● If you have donated money to the country, a school or similar organization
Residents’ Tax (Prefectural and Municipal)
Residents’ tax is payable to either the prefectural or municipal government, by any person who has an address in Japanon the 1st of January of that year. Both types of taxes have a fixed minimal amount and a levy based on the previous year’s earnings. People in regular employment have these taxes taken out of their monthly salaries.
A 10% tax applies to all goods and services and this is included in the advertised price.
National Taxes:Fukuoka Regional Taxation Bureau, Tax Advice Office –Nagasaki Branch
Matsugae-machi 6-26,NagasakiCity. Tel: 095-826-8086
Prefectural Taxes:NagasakiPrefecture Taxation Division
Municipal Government Taxes: Consult the relevant department of your municipal government office.