Tax System

Tax System
Every one who lives in Japan is obliged to pay tax, regardless of nationality. There are two types of taxes in Japan: National Tax paid to the Japanese Government and Local Tax paid to the municipal government. Local Tax is consisted of two taxes: Metropolitan tax paid to Tokyo Metropolitan Government and Municipal Tax paid to the municipal government.
People pay taxes by filling a return and submitting it to the tax office (zeimusho) that has jurisdiction over their region. The system is referred to as kakutei shinkoku, or final return, and as a general rule, people other than the wage earners pay taxes by this system. Wage earners have their taxes deducted from their salary monthly and are not required to file a final return, if their wages are their only income. In general, relevant taxes to foreign residents are shotoku zei , or the Income Tax (national tax), and jumin zei , or the Residents' Tax (local tax).

Income tax
Anyone with an income must submit an income tax return to the tax office of the local area between February 16 and March 15 of the following year and make tax adjustment. Income tax is based on your income during January 1 and December 31 of the previous year. During the final return season, assistance in English is available at Azabu, Shibuya and Shinagawa Tax offices.

Resident taxes
Resident taxes include municipal and metropolitan taxes and are paid by area residents to cover local community expenses. These taxes are deployed in Tokyo metropolitan and Setagaya municipal government works that has a direct bearing on your daily life. Once an income tax return have been submitted, there is no need to submit another return for resident taxes as a resident tax calculation report is sent automatically to the municipal offices.

People who are assessed resident taxes

Anyone who lives in Setagaya as of January 1 of that year and received income during the previous year
* Anyone who received income in excess of a set figure during the previous year.
*Even if someone has moved out of Setagaya during the course of the year, taxes are owed by Setagaya if that person lived in Setagaya as of January.


Anyone who owned a business address or real estate in Setagaya as of January 1, regardless of whether that person lives in Setagaya.

People who are assessed resident taxes should file a final tax return on their previous year's income at City Hall or at a tax office.
* Anyone whose employer has submitted a year-end report to a tax office does not need file a return.

Paying Taxes

Special levies
Taxes are deducted from their salary in 12 monthly installments from May of the following year and paid by the employer.

Ordinary levies
Those other than the wage earners are sent invoices which can be paid at financial institutions, post offices, City Hall, district administration offices, or community branch offices.
Resident taxes can also be paid by automatic bank account debits. Please apply at the financial institution at which you have an account (this does not include post offices).

* People who will be departing Japan permanently before their taxes have been paid in full should either pay the taxes in advance or appoint an executor to pay on their behalf.
* For more information, please contact the Taxation Division at City Hall, accompanied by a person who speaks Japanese.


Foreign Division of Tokyo Regional Tax Bureau
Hours
9:00 a.m. to 5:15 p.m.
Closed
2nd and 4th Saturdays, Sundays and national holidays
Address Otemachi 1-3-1, Chiyoda-ku, Tokyo 100-0004
Tel 3216-6811 ext. 2475

Azabu Tax Office
Address Nishi-Azabu 3-3-5, Minato-ku, Tokyo 106-0031
Tel 3403-0591

Shibuya Tax Office
Address Udagawa 1-10, Shibuya-ku, Tokyo 150-042
Tel 3463-9181

Shinagawa Tax Office
Address Takanawa 3-13-22, Minato-ku, Tokyo 135-0091
Tel 3443-4171

Tamagawa Tax Office
Address Tamagawa 2-1-7, Setagaya-ku
Tel 3700-4131