Japan Income Tax Act

Japan has a bracketed income tax system with six income tax brackets ranging from a low of 5 00 for those earning under 1 950 000 to a high of 40 00 for those earning more then 18 000 000 a year.

Japan income tax act. Taxation in japan preface this booklet is intended to provide a general overview of the taxation system in japan. Taxes are administered. National tax agency japan new topics information for taxpayers publication press release about us contact us announcement of the event enjoying the sake of western honshu on 21 november 2020 pdf 420kb. Non permanent resident those who have lived in japan for less.

Non resident a person who has lived in. A survey of income tax social security tax rates and tax legislation impacting expatriate employees working in japan. Local income taxes generally in japan the local inhabitant s tax is imposed at a flat rate of 10. How does the japan income tax compare to the rest of the.

The contents reflect the information available up to 31 october 2019. For tax purposes people living in japan are classified into three categories. The tax rate for an individual in 2020 is between 5 45 there are reduced. 3 a domestic corporation shall be liable to pay income tax pursuant to this act when it receives in japan payment of taxable income of a domestic corporation or receives payment of taxable income of a foreign corporation attributed to the trust property under a trust subject to corporation taxation for which it accepts the position of trustee.

Taxation in japan is based primarily upon a national income tax 所得税 and a residential tax 住民税 based upon one s area of residence 1 there are consumption taxes and excise taxes at the national level an enterprise tax and a vehicle tax at the prefectural level and a property tax at the municipal level. Japanese local governments prefectural and municipal. In other words the higher the income the higher the rate of tax payable. Japan s tax year runs from 1 january to 31 december and income tax is payable at a national prefectural and municipal level.

While the information contained in this booklet may assist in gaining a better. Spouses are not taxed jointly. Income tax return income tax income tax is paid annually on income earned during a calendar year. Japan tax rates 2020 last partial update may 2020.

The surtax is comprised of a 2 1 tax that is assessed on an individual s national income tax. All taxpayers including spouses and children file tax returns. Tax status foreigner taxpayers fall into one of three possible categories.