For many foreign employees residing in Japan, understanding the nuances of local taxes can be a daunting task. Particularly, the residence tax, which is often a significant annual expense, poses a challenge. However, 2023 brings an opportunity for these expatriates to apply for a residence tax exemption, potentially easing their financial burden.
The eligibility for this exemption and the percentage of tax relief granted is directly linked to the individual’s total personal income earned in the previous year, 2022 in this case. This correlation underscores the importance of maintaining accurate financial records and being aware of one’s income status.
To efficiently navigate this process, foreign workers in Japan need to be meticulous in preparing and submitting several key documents. These documents play a crucial role in determining eligibility and the extent of the exemption. The required documents include:
Beneficiaries Registration Form: This form is a critical component of the application process. It officially registers the applicant for consideration under the tax exemption program.
Certificate of Relationship with the Dependent: Applicants must provide proof of their relationship with any dependents mentioned in the registration form. This is essential to validate claims for exemptions based on financial responsibilities for dependents.
Proof of Financial Support: An invoice or bank statement confirming the monthly financial contribution towards the dependent’s upkeep is required. This document serves as evidence of ongoing financial obligations, which can significantly impact the exemption status.
Choosing a Reliable Money Transfer Bank: For foreign workers supporting dependents back in their home countries, selecting a reputable bank for international money transfers is crucial. This choice ensures that financial support is sent reliably and efficiently, which is essential for maintaining eligibility for tax exemptions.
While the process might seem complex, it’s a strategic move for foreign workers aiming to optimize their financial situation in Japan. It’s not just about reducing the immediate financial strain but also about understanding and adapting to the local tax environment.
For those unfamiliar with the Japanese tax system or who find the documentation process overwhelming, seeking professional advice is recommended. Tax consultants or financial advisors can provide personalized guidance, ensuring that all requirements are met accurately and efficiently.
In summary, the residence tax exemption in Japan for 2023 is a significant opportunity for foreign employees to alleviate some of their tax burdens. By understanding the requirements, diligently preparing the necessary documentation, and possibly seeking expert advice, foreign workers in Japan can navigate this process successfully and benefit financially.
Contact HSB JAPAN to get the Residence Tax Exemption
Navigating the Complexities of Pension Lump-sum in Japan: A Guide for Foreign Workers
Understanding the Intricacies of Pension Lump-sum
Foreign workers in Japan often consider the Pension Lump-sum payment as a part of their retirement planning. However, navigating the complexities of this system can be challenging. There are several critical issues and common mistakes that need to be addressed to ensure a perfect process.
Foreign workers in Japan
The Misconception About Minimum Requirements
Many believe that paying the Pension Lump-sum system for a minimum of six months and possessing a certificate proving a return to their home country for at least two months suffices. However, this is a misconception. The crucial aspect often overlooked is the need to update your residence status in Japan before leaving the country. This step is vital for the successful processing of your Pension Lump-sum. If there’s any uncertainty, it’s advisable to get in touch with your former employer in Japan for confirmation and assistance.
Residence Status and Pension Payments
Another common error occurs when individuals return to their home countries but fail to update their residence status in Japan. It’s essential to formally cut off your residence address in Japan. Continuing to pay into the pension system without updating your residence status can lead to complications. This oversight could potentially disqualify you from applying for the Pension Lump-sum. Therefore, it is crucial to complete all necessary administrative procedures before leaving Japan.
Long-Term Contributions and Pension Benefits
For those who have contributed to the pension insurance for more than ten years, there’s a significant policy shift to be aware of. Upon reaching the age of 65, the Japanese pension authority automatically converts your status to a regular pension beneficiary. This means you will no longer be eligible for the Lump-sum payment, but rather will receive ongoing pension benefits. It’s important to plan accordingly, especially if you are nearing this ten-year threshold.
Seeking Professional Assistance
Navigating the pension system in Japan, especially for foreigners, can be a daunting task. If you are facing difficulties or have uncertainties regarding the application process for Pension Lump-sum, seeking professional guidance is advisable. Organizations like HSB JAPAN specialize in providing detailed advice and assistance to ensure that you receive the benefits you are entitled to without unnecessary complications.
THE INCOME OF THIS YEAR IS LOWER THAN BEFORE – CAN EMPLOYEES APPLY FOR A RESIDENCE TAX DISPENSATION?
Can laborers apply for a residence tax deduction when this year’s earnings are less than the previous year’s?” is one of the questions that are more interesting to foreigners working in Japan. The resident tax is a popular tax for most residents having a job here (such as overseas students, engineers or housewives doing part-time jobs and so on). So what is the resident tax dispensation, the conditions to receive these benefits or which steps do the procedure include. This article will access some important information concerning this topic.
What is the resident tax exemption?
“The resident tax exemption” policy is set up to assist low-income earners to remove the tax burden by the Japanese Government. Each locality will have different regulations regarding procedures and the proportion of tax exemption. For example, the authority in some places adopted this policy with a 100% deduction, however, others only agree to reduce it to 30-50% of the total resident tax.
So who is the resident tax exemption applied?
First of all, employees in the period of receiving unemployment insurance.
Secondly, employees have lower income than last year.
Thirdly, disabled people or citizens are out of working age.
Fourthly, people impacted by natural disasters.
Finally, workers send money to caregivers.
Not all laborers working in Japan can recognize that they are eligible for resident tax exemption so this information that HSB JAPAN will mention below partly helps everyone better understand tax deduction and concerned procedures. Since then, workers will have a clear orientation in completing the procedures for applying for tax exemption.
The procedures for applying for the resident tax exemption
Although each locality has distant regulations about the procedure, method of application, it is compulsory that employees need to know the following essential documents to submit an application for resident tax exemption:
Labor status certificate or proof that you are receiving unemployment insurance.
Income certificate
Balance confirmation
Of course, before submitting an application for a residence tax exemption, you can get in touch with the local resident tax office to review certain essential details like:
Does the local government have the policy to reduce the resident tax?
What criteria must you meet to qualify?
When can you begin to engage in the resident tax exemption?
Although the Japanese government adopted many policies to support disadvantaged people regardless of whether they are natives or foreigners, a few people working here understand their own rights. In response to this issue, HSB JAPAN was founded with the goal of offering the best advisory services for foreign workers in Japan who have a demand to receive tax refund/dispensation, supporting clients in obtaining the highest amount.
The amount to be paid is calculated and increases on a 6-month basis up to a maximum of 12 periods or 60 months (5years). Any payment made after the 60th month is to be excluded. Therefore, the amount to be received will be the same whether one is enrolled in the system for 5 years or 9 years.
※ This new rule will be applied from April 2021.
HOW TO CALCULATE YOUR PENSION LUMPSUM?
① National Pension (KOKUMIN NENKIN)
Starting April 2021, for members whose final payment of insurance premium is due after April 3rd of year 2021, the amount of lump-sum withdrawal payment will be calculated according to the year in which the last month of payment of insurance premium belongs and the periods for which insurance premiums have been paid.
※For those whose final payment of insurance premium is due before March 2021, the amount of lump-sum withdrawal payment is calculated up to a maximum of 36 months (3 years) as in past calculations.
[Calculation Formula for Lump Sum Withdrawal Payment]
The amount of insurance premiums for the year to which the last month of payment of insurance premiums belongs x 1/2 x the number used to calculate the amount of lump-sum withdrawal payment. (See table)
② Employees’ Pension (KOUSEI NENKIN)
Starting April 2021, members whose final payment (the month before the month to which the day of disqualification belongs) is April or after, the amount of lump-sum withdrawal payment is calculated up to a maximum of 12 periods or 60 months.
※ But for those whose final payment of insurance premium is due before March 2021, the amount of lump-sum withdrawal payment will be calculated up to a maximum of 36 months (3 years) as in past calculations.
If you want to calculate how much is your Pension Lumpsum CLICK HERE.
You have coverage periods of six months or more under the EPI system.
You are not eligible for Old-age Employees’ Pension period (see note below)
You have never been entitled to receive a pension (including disability allowance).
It has been within two years of losing your membership of the National Pension if you have never possessed residency in Japan after the loss of your membership of the National Pension and the Employees’ pension.
It has been within two years of losing your residency in Japan if you have possessed residency in Japan after the loss of your membership of the National Pension and the EPI system.
Persons who fulfill the following conditions can claim their pension refunds: 1.They are not a Japanese citizen, 2.They have paid Japanese pension contributions from 6 months to 10 years 3.You left Japan less than two years ago 4. They don’t reside in Japan now （※）Minimum period for a qualification to claim old age pension (basically after 65 years old) is currently 10 year’s enrollment. Most of foreigners who worked in Japan in a short period with working visas are to get qualified to claim their pension refunds after leaving Japan. When the social insurance office (Japanese Pension Service) reimburses your pension payments, it deducts 20% income tax on the refunded amount. However, we will help you reclaim the 20% tax charged on the Lump-sum withdrawal.
We carry out TOTAL PROCESS of claiming pension refunds legally.
We examine all your documents before claiming and help you succeed in your refund surely.
ANNOUNCEMENT OF OUR NEW LOGO & BRAND IDENTITY
Dear: Customers and Partners!
HSB JAPAN would like to send our sincere thanks to our customers and partners for trusting in choosing HSB JAPAN’s services and accompanying the company during the past time.
Aiming at image renewal, strong strategic orientation in the future, from January 28, 2022, HSB JAPAN officially selected the new Logo as the representative of the brand image, marking the innovation and efforts. confirm the reputation of the brand.
Old logo
New logo
The new logo will automatically take effect on all contracts, documents, images, news and on Facebook pages, Websites managed and under the HSB JAPAN brand. All operational functions and other related information of the company remain unchanged.
For clarifications and more information on the branding and its guidelines, kindly contact us:
HSB JAPAN Co., LTD
Website: https://hsbjapan.com
Email: tax_pension@hsbjapan.com
☎️ Tel / fax: 03-5937-246
Unlock your AU locked-phone to International version
Have you ever wondered how to unlock your carrier-locked phone to make it works worldwide? In Japan, Big3 Mobile Service Providers require a contracts with customers for 2 years of contract to use their service and smartphone. The devices by these companies are knows as carrier-lock smartphones.
However, there are simple steps to unlock your phone. Not only it is capable of using worldwide, but also it is easier to switch to other carriers/services in Japan. In this example, we show you how to unlock iPhone (which is locked by AU).
First, you need to record your phone IMEI number (write it down carefully).
Scrolling down to choose SIM unlock procedure (My AU) and then input the mail which registered AU ID above
Input your IMEI number (2 times) and then choose “Next” button
In this step, it will display your device 1. Choose the country for using the device (you should choose your home country). 2. Choose the email address to receive the status of unlock the device. Choose the button to complete this step.
So the unlock procedure has been completed, you should receive the email from AU to notify about the unlock status
Time for trying the sim card from the other service provider, right?
Tax Return and Pension Lump-sum for foreign workers or residents in Japan
HSB JAPAN is an expert in processing Tax Return and Pension Lump-sum for foreign workers or residents in Japan.
The following is a simple estimation you can get for your refund.
If you have been able to work in Japan for three years you can claim
JPY400,000- JPY800,000
*This may change depending on your monthly salary.
&
If you have been able to work for three years and send money to your family you can get your Income-tax and Residence Tax refunded:
JPY160,000 – for (1) a Beneficiary.
JPY500,000- for three (3) Beneficiary.
*This may change depending on your monthly salary.
HSB JAPAN, ay eksperto sa pag proseso ng Tax Retrurn at Pension Lump sum para sa mga dayuhang manggagawa o residente sa Japan.
Ang mga sumusunod ay simpleng estimation na maari nyong makuha para sa inyong refund.
Kung ikaw ay nakapag trabaho sa loob ng tatlong taon maari kang makapag claim ng
JPY400,000- JPY800,000
Ito ay maaaring may pagbabago depende sa iyong buwanang sahod.
&
Kung ikaw ay nakapag trabaho sa loob ng tatlong taon maari kang makapag refund ng iyong Income tax at Residence Tax ng
JPY160,000 – para sa (1) isang Beneficiary.
JPY500,000- para sa tatlong (3) BenefIciary.
Ito ay maaaring may pagbabago depende sa iyong buwanang sahod.
CHARTER FLIGHT JAPAN – VIETNAM
Because of COVID-19 pandemic’s dire situation and in order to support Vietnamese people to return to Vietnam safety, from April 2021 HSB JAPAN Co.Ltd provided ticket reservation service for charter flights (from Vietnam Airline, Bamboo Airline, and Vietjet Airline).
Please contact us for flight schedule and update the latest charter flights available in 2021 (from Vietnam Airline, Bamboo Airline, and Vietjet Airline).
Staying at quarantine hotels (3 – 5 stars quality)
Covid-19 test: 3 times during the quarantine period
3 meals/day
Bus transportation from Airport to quarantine hotels
FULL DEPOSIT FOR TICKET IS NOT COMPULSORY – IN CASE OF FLIGHT GETS CANCELLED BY AIRLINE, CUSTOMER WILL RECEIVE A FULL REFUND.
MOREOVER
Customer can register for SPECIALCOMBO service AIR TICKET + PENSION REFUND -> 100% FREE SERVICE FEE FOR applying for lump-sum withdrawal payments.
Customers who apply for lump-sum withdrawal payments by HSB JAPAN before return to Vietnam also get a discount, only 10% service fee.
(Discount campaign applicable from June 1, 2021)
For more details, please contact us:
., .
160-0023東京都新宿区西新宿7-6-8アイアイビル３
☎️Tel: 03-5937-2465 Fax: 03-5937-2468
Hotline: 080-4864-3688 (Zalo- Viber) Ms Huyền Trang
HSB JAPAN BECOMES A PARTNER OF MIRAI INSURANCE COMPANY AND IS AN EXCLUSIVE DISTRIBUTOR OF MIRAI INSURANCE SERVICES FOR FOREIGNERS IN JAPAN
Since 15th August 2020, HSB JAPAN is honoured to be a strategic partner and exclusive distributor of MIRAI Insurance Corporation, providing insurance products for Vietnamese people living and working in Japan.
MIRAI insurance applies to all short-term and long-term visas in Japan with period of stay more than 6 months: Tourist Visa, Working Visa, Engineer Visa, Dependent Visa, Refugee Visa… .
For more information, please contact the Mirai Insurance Consulting Department
MIRAI INSURANCE
With the desire to help Vietnamese workers, foreign workers, tourists, and short-term business have the assurance of health and accidents during their time working in Japan. HSB JAPAN is honoured to be a strategic partner and exclusive distributor of MIRAI SECURITY INSURANCE service for Vietnamese and foreigners in Japan.
MIRAI insurance is a special and special insurance service for foreigners with short- and long-term residency in Japan.
PROVIDE REMITTANCE RECEIPTS FOR TAX REFUND
Dear customers, every October, companies require employees and employees to prepare the necessary documents to make tax refunds. The remittance bill is one of them, which is extremely important for the tax department to decide the amount of tax you will have to pay this year and the amount you will be refunded for overpayment in previous years.
To receive Money Transfer receipts and assistance with the tax refund process. Please contact City HSB Department and provide the following information
Lump-sum Withdrawal payments coverage extended from 3 years to 5 years
According to Japanese Nation Pension, from 01/04/2021 the maximum lump-sum withdrawal payments for short-term foreigners will be extended from 3 years to 5 years.
This change applies to short-term employees such as: Trainee Visa, Designated Visa, Engineer visa…
We would like to inform you of the closing plan for New Year holidays 2021:
Our main office in Tokyo will be closed for 4 days, from December 31, 2020 to January 03, 2021; and will be re-opened for business on January 4, 2021.
Customer support and online consulting service will operate normally (except day off on January 1, 2021).
During the holidays, if you have any questions or issues, please contact us by email: info@hsbjapan.com we will try to respond as soon as possible.
We wish all of you a happy, healthy prosperous New Year!
Customer appreciation weeks “2000 JPY Discount”
We value our customers and partners for choosing our services for more than 11 years.
We are happy to announce “2000 JPY Discount” program as a gift for customers who register for TAX REFUND and TAX DEDUCTION service of HSB Japan, from January 1, 2021 to March 31, 2021.
In addition, we also have many offers and promotions for other services: Pension service (Nenkin), Internet service, and International Remittance service…
3. Income tax return for foreigners who quit from work or left Japan.
We not only help you minimize the amount of tax payable to the Japanese government, but also help to refund the amount of tax arrears in previous years with comprehensive support, bringing convenience, assurance and transparent to our customers.
Reasons for Choosing Us
– We have cooperated with experienced tax advisory MASAO ISHIWATARI. Since 2013 we have assisted thousands of customers to claim their tax return.
– Trust and Achievements
– Support in multiple languages
INCOME TAX – RESIDENCE TAX
Income Tax
All individuals living and working in Japan are obligated to pay income tax (所得税: し ょ と く ぜ い). The amount of tax payable will depend on the annual income.
Income less than 130,000 yen / year will not be charged income tax.
Students, trainees and employees at a contracting company will have the tax deducted directly from their salaries. If you work for a company without a contract, you will have to self-declare tax and must file it by March 15 of the following fiscal year. If you pay taxes by bank transfer, the deadline is April.
Residence Tax
Residence tax is the amount of money that people living in the city must pay to the local tax office to contribute to the maintenance of the local social-welfare services. Residence tax is a tax that every individual with income in a year over the limit (103,000 yen / year) must pay, regardless of whether you are a student, international students, or foreigners.
Residence tax is calculated based on the income of the previous year. Therefore, your first year in Japan you don’t have to pay for this tax. However, the following year, Tax authorities will rely on your income in the previous year to calculate the amount of tax you have to pay.
TAX REFUND
It’s your money! Let’s go get it.
We help you maximize your Japanese Tax Refund: Income tax & Resident tax
You could be entitled to get tax back from Japan for a number of reasons including:
• You are a foreigner working in Japan for more than a year
• You are married to Japanese
• You send remittance to dependents family in home country
*The more dependent you have the more refund you’ll get
Dependents
Income Tax
Refundable/year
Residential
Tax Refundable/year
Total amount of Tax
Refund/year
1 dependent
~￥19,300
~￥35,500
~￥54,800
2 dependents
~￥38,600
~￥71,000
~￥71,000
3 dependents
~￥57,900
~￥106,500
~￥164,400
*This is a approximate estimation
Preparing a tax return can be confusing and complicated if you’re not familiar with the process. We have specialists in Japanese tax laws so we can do all the tax return preparation for you and simply send the money to you when it comes back.
The Japanese tax year is from January 1st to December 31st
• We can claim your tax refund (Income Tax and Residential Tax) from Japan for up to five years
• The size of the refund you get back will depend on how much you earned in Japan, how long you worked for and how long you were there for overall
• You will also have contributed part of your salary into a pension fund – we can also reclaim a portion of these contributions for you.
