A Guide to Filing Kakutei Shinkoku (確定申告) Tax Returns in Japan

The tax declaration period in Japan, known as 確定申告 (kakutei shinkoku), takes place annually from mid-February to mid-March.

So, what is kakutei shinkoku? Who is required to file this tax declaration? What documents need to be prepared, and how should the tax declaration be carried out? In this article, HSB JAPAN will help you gain a clearer understanding of these questions.

① What is 確定申告 (kakutei shinkoku)?

This is the process of calculating and declaring taxes based on income earned within a one-year period from January 1 to December 31. The tax declaration for the previous year is conducted between mid-February and mid-March of the following year. During this time, the required documents must be submitted to the local tax office. Depending on the case, some individuals may receive a refund for overpaid taxes during the year.

② Who is required to file a tax declaration?

• Individuals with an annual income exceeding 20 million yen (2000 man yen).
• Individuals with a side job in addition to their main job, where the side job income exceeds 200,000 yen.
• Employees working at multiple companies who receive more than 200,000 yen from a secondary employer (the one that does not conduct year-end tax adjustments).
• Directors or family members of family-run companies who earn interest from loans or real estate rentals from the company.
• Individuals receiving pension income exceeding 4 million yen after deductions.
• Freelancers and self-employed individuals with an income exceeding 380,000 yen.
• Individuals earning rental income or interest from real estate.

③ Who is exempt from filing a tax declaration?

• Self-employed individuals with income below 380,000 yen.
• Employees (both full-time and part-time) whose companies have completed the year-end tax adjustment on their behalf.
• Individuals with side jobs earning less than 200,000 yen.
• Pensioners with income below 4 million yen (after deductions) and no additional income over 200,000 yen.
• Part-time workers (arubaito) with total annual income below 1.03 million yen.

④ Who should consider filing a tax declaration?

Although not mandatory, these individuals could benefit by filing, as they might receive tax refunds:

• Self-employed individuals who have incurred losses and could benefit from local tax reductions (住民税 jyuminzei).
• Those with medical expenses exceeding 100,000 yen or who have suffered property losses due to natural disasters.
• Individuals who resigned mid-year without completing year-end tax adjustments.
• Those who received severance payments that were not declared.
• Part-time workers who had taxes deducted at source (源泉徴収 gensen choushuu) by an employer that is not their primary job.
• Individuals who made charitable donations (e.g., Furusato Nozei tax donation program).
• Employees whose company completed year-end adjustments but forgot to declare deductions such as remittances to family, medical expenses, insurance, maternity costs, etc.

Note: Filing tax declarations is an obligation. Additionally, it allows individuals to claim refunds for overpaid taxes. Failure to file, whether intentional or not, may result in significant penalties. It is important to file within the designated period to avoid overdue penalties.

⑤ Difference between 確定申告 (kakutei shinkoku) and 年末調整 (nenmatsu chousei)

The key difference is:

• 確定申告 (kakutei shinkoku): A tax declaration process conducted by the individual.
• 年末調整 (nenmatsu chousei): A year-end tax adjustment handled by the employer, calculating, adjusting, and submitting taxes on behalf of employees.

Employees with a single source of income from their company do not need to file 確定申告. However, those listed in section ② must still file even if their employer conducted the year-end tax adjustment.

⑥ How to file a tax declaration

1. Required documents:

The documents needed may vary depending on individual circumstances, but common ones include:

• Tax return forms: Form A (for salary and pension income) and Form B (for all income types). These can be downloaded, printed, and filled out manually.
• 源泉徴収票 (gensen choushuu hyou): This certificate summarizes your income and withheld taxes, usually provided by your employer around December or January.
• Personal identification documents: My Number card (both sides) or alternative ID such as a driver’s license, passport, residence card, or insurance card.
• Expense receipts and proof documents: For medical expenses, remittances to family abroad, freelance income, etc.

2. Submission methods:

You can submit documents through:

• Mailing to the local tax office.
• In-person submission at the tax office.
• Online filing via the e-Tax system.

Check the nearest tax office location here.

Common Japanese Tax-Related Terms

• 確定申告 (kakutei shinkoku): Tax declaration (filing for a tax refund)
• 年末調整 (nenmatsu chousei): Year-end tax adjustment
• 源泉徴収票 (gensen choushuu hyou): Income and tax withholding statement
• 税務署 (zeimusho): Tax office
• 所得税 (shotokuzei): Income tax
• 扶養家族 (fuyou kazoku): Dependent family member (without income)
• 扶養控除 (fuyou koujo): Tax deduction for dependents
• 医療費控除 (iryouhi koujo): Medical expense deductions
• 提出 (teishutsu): Submission (of documents)

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Above is an overview of the kakutei shinkoku tax declaration process.

If you need assistance with your tax refund application, let HSB JAPAN handle it for you! We ensure a professional, fast, and accurate process so you can reclaim your rightful benefits with peace of mind.

HSB JAPAN PROMISES:
✅ Direct communication with tax authorities, ensuring ACCURATE and FAST processing.
✅ Assistance with complex cases and challenging scenarios.
✅ Clear and transparent contracts, with no hidden fees.
✅ Helping you MAXIMIZE your tax refund.

📩 Contact HSB JAPAN today for a detailed consultation and claim your benefits with confidence!

How to Register Dependents to Reduce Residence Tax in Japan

Residence tax (住民税 or juminzei) is a mandatory tax for anyone earning an income in Japan. However, you can reduce or even eliminate your residence tax by registering dependents appropriately, which can help you save money efficiently. In this article, HSB JAPAN explains the process and introduces our professional tax consultancy services to assist you in managing your taxes effectively while living in Japan.

1. What is Residence Tax in Japan?

Residence tax (住民税 or juminzei) is a local tax applied to both Japanese citizens and foreign residents earning an income in Japan. This tax is used to fund essential public services, such as education, welfare, waste management, disaster prevention, and cultural activities within the local municipality.

Anyone earning over ¥1,000,000 annually is generally required to pay residence tax.

To reduce residence tax to zero, you need to adjust your taxable income (給与所得, kyuuyo shotoku) to stay below the exemption threshold (非課税限度額, hikazei gendogaku) set by your city or ward.

2. How to Register Dependents to Reduce Residence Tax

Step 1: Determine Your Taxable Income

Your taxable income is calculated as:
Taxable Income = Total Annual Income – Deductions (insurance, dependents, etc.)

You can calculate your taxable income using online calculators provided by the Japanese Tax Agency. Input your annual income (年収, nenshuu), and it will display your taxable income. Get the link

Step 2: Identify the Residence Tax Exemption Threshold

The exemption threshold varies depending on the number of dependents and the city or ward where you live. Each city is categorized into different zones (e.g., Zone 1, 2, or 3), which determine the exemption levels.

For example, in Tokyo (Zone 1), the exemption threshold is calculated as:
Exemption Threshold = (¥350,000 × Number of Family Members) + ¥100,000 + ¥210,000

The number of family members includes:

• The head of the household
• A spouse (if their income is below the specified limit)
• Registered dependents (including children under 16, whether they live in Japan or abroad).

Step 3: Compare and Adjust to Reduce Residence Tax to Zero

After determining your taxable income and the exemption threshold, compare the two:
Taxable Income < Exemption Threshold = No Residence Tax

For example:

• If your annual income is ¥3,000,000, your taxable income might be ¥2,020,000 (after deductions).
• With two dependents: Exemption threshold = ¥1,360,000 → Tax still applies (¥2,020,000 > ¥1,360,000).
• With three dependents: Exemption threshold = ¥1,710,000 → Tax still applies (¥2,020,000 > ¥1,710,000).
• With four dependents: Exemption threshold = ¥2,060,000 → No tax (¥2,020,000 < ¥2,060,000).

If your income increases by approximately ¥300,000 annually, adding one more dependent may help you maintain exemption from residence tax.

About HSB JAPAN – Tax, Pension & Visa Consultancy

Navigating Japan’s tax system can be complex, especially for foreign residents. At HSB JAPAN, we specialize in tax refund consultancy, including residence tax, income tax, and pension claims. Our team provides:

• Professional assistance in registering dependents to optimize your tax benefits.
• Step-by-step guidance for tax filing and refund applications.
• Expertise in resolving visa and residency-related tax issues.

Our goal is to simplify the process and help you maximize your savings. Contact HSB JAPAN today to make your financial management in Japan stress-free and efficient.

We hope this guide helps you understand how to reduce your residence tax in Japan. With the right adjustments and professional support from HSB JAPAN, you can optimize your financial planning and enjoy a more comfortable life in Japan.

What to Do After Arriving in Japan

As Japan reopens its borders for purposes beyond tourism, many individuals are moving to the country for work, study, or other long-term stays. If you’re one of them, it’s essential to prepare for life in Japan. This guide will walk you through the crucial steps to ensure a smooth transition. For expert assistance in navigating tax refunds, pension claims, and visa-related matters, consider HSB JAPAN – your trusted partner in Tax, Pension & Visa Consultancy.

Table of Contents:

1. Get Your Residence Card
2. Get Your Train Cards
3. Make Your Hanko
4. Make a Bank Account
5. Get Your Japan Phone Number
6. Set Up Utilities: Electricity, Gas, and Water
7. Get Wi-Fi for Your New Home
8. Separate Your Garbage and Learn the Schedule
9. Find a Good Remittance Company

1. Get Your Residence Card

Your residence card (在留カード zairyu ka-do) is your official identification in Japan. You must carry it at all times. Upon arriving at major airports such as Narita, Haneda, Kansai, or Chubu, immigration officers will issue your residence card. If you’re entering through another airport, visit the nearest Immigration Bureau to obtain it.

After receiving the card, you must register your address at your local city hall within two weeks. This step is mandatory and ensures your residence card is valid. 

2. Get Your Train Cards

Public transportation in Japan is efficient and widely used. Obtain a train or transit card like Suica or Pasmo on your first day. These cards can be purchased and recharged at any train station. They’re convenient not just for travel but also for payments at vending machines and stores.

You can top up your card at train stations or convenience stores, making it an essential item for daily life.

3. Make Your Hanko

Unlike many countries where signatures suffice, Japan uses a hanko (はんこ), a personalized stamp, for signing contracts. You’ll need a hanko for tasks like renting an apartment or setting up a phone plan.

Foreigners can create a custom hanko at specialized shops, with costs varying based on material, size, and complexity. Always carry it alongside your residence card.

4. Make a Bank Account

Opening a bank account in Japan can be challenging, especially if you don’t speak Japanese. Many foreigners opt for Japan Post Bank (ゆうちょ銀行 Yucho Ginkou) due to its accessible process.

Be prepared to answer questions about your purpose for the account and your financial background. This account is crucial for receiving salaries and handling other financial transactions. 

5. Get Your Japan Phone Number

A Japanese phone number is necessary for filling out forms and staying connected. Providers like Rakuten Mobile, Line Mobile, UQ Mobile, and Y! Mobile offer affordable plans. Most staff at these stores may not speak English, so it’s helpful to bring someone fluent in Japanese to assist you.

6. Set Up Utilities: Electricity, Gas, and Water

When you move into a new apartment, utilities like electricity, gas, and water are usually not active. Contact the respective companies to schedule activation. They may require a brief visit to your home to set up these services.

7. Get Wi-Fi for Your New Home

Reliable internet is essential. Providers like SoftBank, J:Com, Rakuten, and Nuro offer various plans. Applications can be made online or in-store. Installation appointments are required, so schedule them early to avoid delays. If you’re not fluent in Japanese, seek assistance from someone who is.

8. Separate Your Garbage and Learn the Schedule

Garbage disposal in Japan follows strict rules, with schedules and categories varying by area. Common categories include burnable, non-burnable, bottles, cans, and paper. Garbage should be placed in designated bags and taken out before 8 AM on collection days.

Familiarize yourself with your area’s rules to avoid fines and maintain cleanliness.

9. Find a Good Remittance Company

If you plan to send money to loved ones back home, finding a reliable remittance service is crucial. Look for companies offering competitive rates and convenient processes. HSB JAPAN can also recommend trusted remittance services to help you send money securely and efficiently.

Moving to Japan can be an exciting yet challenging experience. By following these steps, you’ll ensure a smoother transition and start your new life on the right foot. HSB JAPAN is here to assist you with tax, pension, and visa-related matters, ensuring you make the most of your time in Japan. Contact us today for professional and reliable support!

Japan’s Health Insurance System: A Comprehensive Guide

Japan’s healthcare system ensures “Universal Health Insurance Coverage,” mandating that every resident, from newborns to seniors, participates in public health insurance. This coverage also extends to foreign nationals residing in Japan for medium to long-term periods, including workers and students. HSB JAPAN is here to help you navigate and understand this comprehensive healthcare system.

Managed by the government or designated public organizations, the type of insurance you join depends on your employment status and workplace rather than personal choice. Below is a detailed guide to the various types of health insurance available in Japan.

1. National Health Insurance (NHI)

Who Should Join?

• Self-employed individuals.
• Foreign students studying in Japan.

Enrollment is conducted at the city, town, or village office (shi-cho-son).

Premiums

Premiums vary depending on your income from the previous year in Japan. New international students with no prior income in Japan typically pay the lowest premium. After enrollment, a payment slip will be sent to your address. You can pay the premium at convenience stores or banks.

Important: If you fail to pay the premium, your insurance card becomes invalid, and you’ll have to pay 100% of medical costs upfront at the hospital.

Example:

• With an insurance card: You pay 30% of a 10,000-yen medical bill (3,000 yen).
• Without an insurance card: You pay the full amount (10,000 yen).

Additional Benefits:

1. High Medical Expense Coverage: If your monthly medical expenses exceed a set limit (subject to conditions), the insurance covers the excess amount.
2. Childbirth Lump-Sum Allowance: You can receive approximately 400,000 yen upon the birth of a child.

2. Employee Health Insurance

Who Should Join?

Employees of companies and their families.

Your enrollment is handled by your employer, and your type of insurance depends on your workplace. Examples include:

• Large companies: Join specific health insurance societies.
• Private schools: Join Shigaku Kyosai.
• Other organizations: Join Kyokai Kenpo.

Premiums and Contributions

Premiums are deducted from your salary, and your employer contributes an equal amount. For instance, if 20,000 yen is deducted monthly from your salary, your employer pays an additional 20,000 yen to the insurance provider.

Key Benefits:

1. Sickness Allowance: If you’re unable to work due to illness or injury (unrelated to work), you can receive approximately two-thirds of your salary after a three-day waiting period. This includes cases where you recover at home, provided you have a doctor’s certificate.
2. Childbirth Allowance:
   • Pre-birth leave: 42 days before the expected delivery date (98 days for twins).
   • Post-birth leave: 56 days after childbirth.
   • You can receive two-thirds of your salary during this period.
3. High Medical Expense Coverage and Childbirth Lump-Sum Allowance: Similar to NHI.
4. Parental Leave Allowance: Both parents can take leave, but only one can receive this benefit at a time, amounting to about 50% of their salary.
5. Childcare Support: Up to one year after childbirth, this allowance supports parents who take time off work for child-rearing.

3. Labor Insurance

Labor insurance includes Employment Insurance and Worker’s Accident Compensation Insurance, which are mandatory for employees.

3.1 Employment Insurance

Benefits:

• Unemployment Benefits: Financial support during job search periods. Enrollment and claims are handled at Hello Work centers.
• Parental Leave Allowance: Available for up to one year after childbirth.
• Training Benefits: Financial aid for skill development or certifications to enhance employability.

3.2 Workers Accident Compensation Insurance

Coverage:

• Medical costs for injuries or illnesses sustained at work.
• Compensation for lost wages during recovery.
• Disability benefits if the injury results in long-term impairment.
• Death benefits for the family in case of fatal workplace accidents.

Keynote:

• The company covers the entire premium for this insurance.
• Be honest about workplace injuries to avoid legal consequences and ensure maximum benefits.
• Disability compensations are categorized into 14 levels, with severe cases receiving annual pensions and less severe cases receiving lump sums.

Conclusion

Japan’s health insurance system provides comprehensive coverage to ensure residents’ well-being. Whether you’re a student, a self-employed individual, or an employee, understanding the benefits and responsibilities associated with each type of insurance is crucial. Always ensure timely enrollment and premium payments to access these benefits when needed.

With over 15 years of experience, HSB JAPAN offers comprehensive support to interns in managing pensions, tax refunds, and labor rights in Japan. Contact us for expert guidance.

Can Foreign Interns in Japan Take on Part-Time Jobs?

The question of whether foreign interns in Japan are allowed to take on part-time jobs is a common concern for those exploring Japan’s internship and labor export programs. Some claim that interns are strictly prohibited from taking extra work, while others suggest it is permissible. So, what is the accurate answer? Let HSB JAPAN help you explore the details below.

1. Are Foreign Interns in Japan Allowed to Take on Part-Time Jobs?

Foreign interns in Japan are not permitted to engage in other jobs outside their assigned roles after entering the country unless they are granted permission to do so at the time of entry or as per overtime policies specific to their company or organization.

This restriction is based on Japanese labor laws, which stipulate that individuals with specific residence statuses are prohibited from participating in activities or jobs outside the scope of their visa. Violations of these rules can lead to severe penalties, including immediate deportation.
For example, an intern on a construction visa is only allowed to work within the designated field and for the assigned employer. Any external work outside the permitted scope is illegal and could result in deportation if discovered.

Conclusion: Interns are allowed to take on extra work only if it is assigned by their employer. Any unauthorized work outside the registered scope is strictly prohibited.

2. Regulations on Overtime Work for Foreign Interns in Japan

In this section, we delve into the legal framework for overtime work, which is a common way for interns to supplement their income.

Permissible Overtime Hours

According to Japanese labor laws, the permissible working hours for employees, including interns, are as follows:

• Daily and Weekly Hours: Interns can work up to 10 hours per day and 40 hours per week.
• Overtime Limits: Overtime work must not exceed 50% of the total daily work hours, with a maximum of 45 hours per month and 360 hours per year.
• Holiday and Night Work: Workers may work up to 12 hours on holidays, and night shifts from 10 PM to 5 AM are subject to special rates.

Overtime Pay Rates

Japanese companies calculate overtime pay based on labor law standards:

• Weekday Overtime (5 PM – 10 PM): 125% of the base hourly wage.
• Night Overtime (10 PM – 5 AM): 125% of the base hourly wage.
• Holiday Overtime (Saturday, Sunday, and public holidays): 135% of the base hourly wage.
• Special Holiday Overtime: 160%-200% of the base hourly wage.

For instance, if an intern typically earns 1,000 yen per hour and works 4 overtime hours in the evening, the hourly overtime pay would increase to 1,250 yen (25% extra).

Additional Notes on Income

Unlike regular jobs, overtime income is not typically subject to deductions for food, insurance, or transportation, allowing interns to retain most of their earnings.

3. Important Considerations for Foreign Interns Taking on Overtime

While interns may legally engage in overtime work, it is essential to follow these guidelines:

• Document Overtime Hours: Keep accurate records to verify pay and avoid disputes.
• Avoid Unauthorized Work: Violating labor laws can result in deportation or other penalties.
• Notify Authorities When Necessary: Ensure transparency by informing relevant authorities about overtime work arrangements.

4. Common Questions from Foreign Interns About Overtime

Q1: Which industries offer the most overtime opportunities?
Construction, agriculture, and food processing frequently offer overtime due to their operational demands.

Q2: Can interns take on overtime in a different field?
This depends on the company’s policies and the specific skill set of the intern. Approval from the employer is mandatory.

Q3: Are there work-from-home options for overtime?
Certain fields, such as IT and design, may allow interns to work overtime from home. However, explicit approval is required.

Q4: Can interns switch companies for more overtime opportunities?
Interns can transfer companies under specific conditions, such as employer bankruptcy or mistreatment. However, switching solely to seek additional overtime is not permitted.

Conclusion

Foreign interns in Japan are restricted from engaging in part-time jobs outside their assigned roles unless authorized by their employer. Legal overtime work is allowed and provides a legitimate way to increase income.

With over 15 years of experience, HSB JAPAN offers comprehensive support to interns in managing pensions, tax refunds, and labor rights in Japan. Contact us for expert guidance.

Guide to Self-Check Your Nenkin Payment Status in Japan via Nenkin Net

As a resident of Japan, paying taxes and insurance, including Nenkin (pension contributions), is mandatory. This obligation applies to everyone, from students to workers, and directly impacts visa status and residency in Japan. What happens if you forget your payment deadline? This article by HSB JAPAN will guide you on how to check your Nenkin payment status using the Nenkin Net website (年金ネット).

1. What Are Nenkin and Nenkin Net?

a. What is Nenkin?

Nenkin (公的年金制度 – Koteki Nenkin Seido) is a mandatory pension insurance system for all individuals living and working in Japan. It applies to people aged 20–59, regardless of gender, occupation, or nationality. Even foreign residents staying for a short period must enroll in this program.

Upon retirement (after 65 years of age), individuals who have fulfilled their Nenkin payment obligations will receive a pension to support their lives. Additionally, before turning 65, participants may be eligible for other benefits, such as survivor’s or disability allowances, in case of unforeseen incidents.

There are two main types of Nenkin payments in Japan:

• Basic Pension (Kokumin Nenkin – 国民年金)
• Employee Pension (Kosei Nenkin – 厚生年金)

Learn more about the pension system in Japan through this detailed guide.

b. What is Nenkin Net?

Nenkin Net is an online platform that allows users to check their Nenkin payment status. Forgetting payment deadlines or missing payments can result in Nenkin arrears, which may impact visa renewal or obtaining permanent residency in Japan.

Through this website, you can check the following information anytime, anywhere:

• Personal details
• Monthly Nenkin payment records
• Total amount paid
• Amount paid by the individual and employer
• Projected pension benefits after turning 65
• Notifications of Nenkin statements and delivery times
• Updates from the Japan Pension Service

2. How to Register on Nenkin Net

To begin, you need to create an account on Nenkin Net. Prepare the following information:

• Nenkin Handbook
• Email address
• Mobile phone number

Note: If you’ve lost your Nenkin Handbook, contact HSB JAPAN for assistance in retrieving it.

Step 1: Access the Nenkin Net Website

Visit Nenkin Net.

Step 2: Register a New Account

• Select 新規登録 to create a new account.
• If you already have an account, click ログイン to log in.
  This guide focuses on registering a new account.

Step 3: Provide Your My Number Information

• If you have a My Number, download the マイナポータル app and follow the instructions (available for iOS and Android).
• If you do not have a My Number, select アクセスキー and follow the instructions provided in the reference image.

Access Key (アクセスキー):
This 17-digit code is used to retrieve your Nenkin Net User ID. It is printed on the Nenkin Annual Statement (ねんきん定期便) sent in your birth month each year. The access key is valid for three months from the statement’s issue date.

Once you review the necessary content, check the box agreeing to the 利用規約に同意する terms and click ご利用登録に続ける to proceed.

Step 4: Register Personal Information

Fill out the following 10 fields:

1. 基礎年金番号入力: Basic Pension Number
2. 氏名入力: Full Name
3. 生年月日入力: Date of Birth
4. 性別選択: Gender
5. 郵便番号と住所入力: Postal Code and Address
6. お客様設定パスワード入力: Password for Nenkin Net login
7. 秘密の質問と答え設定: Security Question and Answer
8. メールアドレス入力: Email Address
9. お知らせメール希望: Confirm receiving updates via email by selecting 希望する.
10. 電話番号入力: Phone Number in Japan

After completing the form, review the information and click 次に進む (入力内容を確認する) to confirm your submission.

Once registered, you can easily check your Nenkin payment status anytime. Taking proactive steps to monitor your payments and ensuring timely contributions is highly beneficial for foreign residents living in Japan. Best of luck!

Want to receive your Nenkin quickly? Contact HSB JAPAN now!

– With 15 years of experience and over 50,000 successful customes handled

– Preparing your documents online for same-day processing. No complicated procedures

– Commitment to securing 100% of your Nenkin for both 80% and 20% with clear invoices

– Free processing for the first Nenkin application. Fixed all-inclusive fee for Nnekin 2, no hidden costs

– Rest assured you will receive your Nenkin Application in your bank account

– Support available 24/7 to resolve any issues until you receive 100% of your pension lumpsum

How to Register Dependents to Get Exemptions from Resident Tax

Resident tax (住民税) is a mandatory tax for individuals with income in Japan. However, you can reduce or even eliminate your resident tax by appropriately registering your dependents, helping you save more effectively. Let’s explore how with HSB JAPAN in this article.

Table of Contents

• What is Resident Tax?
• How Many Dependents Do You Need to Register to Reduce Resident Tax to Zero?
• Step 1: Determine Your Taxable Income
• Step 2: Identify the Resident Tax Exemption Threshold
• Step 3: Compare and Adjust to Bring Resident Tax to Zero

1. What is Resident Tax?

Resident tax (住民税) is a type of tax applied to the income of both citizens and foreign residents living in Japan. Its purpose is to ensure funding for local governments. The collected tax is used for education, welfare, waste management, disaster prevention, and cultural activities within the local community.

Anyone earning an annual income of 1,000,000 yen (100 man) or more is required to pay resident tax.

To be exempt from resident tax (i.e., bring it to zero), you typically need to adjust your taxable income (給与所得 – きゅうよしょとく) to be below the non-taxable threshold (非課税限度額 – ひかぜいげんどがく) set by your city or municipality.

2. How Many Dependents Do You Need to Register to Reduce Resident Tax to Zero?

Step 1: Determine Your Taxable Income

First, calculate your taxable income:

Taxable Income = Total Annual Income – Deductions (insurance, dependents, etc.)

You can calculate your taxable income based on your total annual income (給与年収) using the formula provided by your local tax office. Input your income into an online calculator (provided by the Tax Bureau) to get an estimate. Link

Step 2: Identify the Resident Tax Exemption Threshold

The exemption threshold varies depending on the number of dependents you register and the city you live in. Check whether your location falls under Area 1, 2, or 3 for specific thresholds.

For example, in Tokyo (Area 1), if your taxable income is less than:

• (35man×family members)+10man+21man(35 \text{man} \times \text{family members}) + 10 \text{man} + 21 \text{man}(35man×family members)+10man+21man,
  then your resident tax will be zero.

Family Members (世帯人数) include:

• The household head,
• Dependent spouse (income below a certain threshold),
• Registered dependents (including dependents in Vietnam or Japan, as well as children under 16).

Step 3: Compare and Adjust to Bring Resident Tax to Zero

To eliminate resident tax:

Taxable Income < Resident Tax Exemption Threshold

For example:

• Total Annual Income: 3,000,000 yen (300 man) → Taxable Income: 2,020,000 yen (202 man).
• With 2 dependents: Exemption threshold = 1,360,000 yen (136 man) → Still taxable (202 man > 136 man).
• With 3 dependents: Exemption threshold = 1,710,000 yen (171 man) → Still taxable (202 man > 171 man).
• With 4 dependents: Exemption threshold = 2,060,000 yen (206 man) → Tax reduced to zero yen (202 man < 206 man).

If your income increases by around 300,000 yen (30 man) annually, you would only need to add one more dependent to maintain your resident tax exemption.

Conclusion

We hope this article is helpful for those seeking ways to reduce their resident tax! By understanding your income and registering dependents effectively, you can minimize your tax burden and save more for your needs.

Follow HSB JAPAN for more tips on managing taxes and documentation in Japan.

Childbirth Benefits in Japan: A Comprehensive Guide

When expecting a baby in Japan, there are many things to consider, and the financial aspects are often a significant concern. Fortunately, Japan’s healthcare system offers several benefits to help ease the burden of childbirth expenses. One of the most important benefits is the Childbirth and Childcare Lump-Sum Grant. This financial aid can significantly reduce out-of-pocket costs for new parents, making the transition into parenthood more manageable. In this guide, we will explore the details of the Childbirth Lump-Sum Grant, eligibility criteria, the application process, and other related benefits available to residents of Japan.

1. Understanding the Childbirth and Childcare Lump-Sum Grant

The Childbirth and Childcare Lump-Sum Grant (出産育児一時金, Shussan Ikuji Ichiji-kin) is a benefit provided by Japan’s health insurance system. The grant is designed to assist with childbirth expenses and is available to both Japanese nationals and foreign residents who are covered under the national health insurance or an employer’s health insurance plan.

The grant amount typically covers a portion of the delivery expenses, and the specific amount varies depending on the hospital or clinic chosen for delivery. The standard grant is approximately ¥500,000, but it can be slightly less at certain facilities, with some offering a reduction based on the institution’s policies.

2. Eligibility for the Childbirth Lump-Sum Grant

To be eligible for the Childbirth and Childcare Lump-Sum Grant, several criteria must be met:

• Health Insurance Coverage: Both Japanese nationals and foreign residents must be covered under the national health insurance or a private health insurance plan.
• Pre-Delivery Registration: Parents must ensure that the childbirth benefit is registered in advance with their health insurance provider. This process typically starts when the pregnancy is confirmed, and it’s important to apply well in advance of the due date.
• Notification of Pregnancy: In many cases, the expecting mother must notify her insurance provider of her pregnancy early on to confirm her eligibility for benefits.
• Required Documents: Expecting parents will need to provide documentation such as proof of pregnancy and confirmation of health insurance coverage. This may include submission of a medical certificate or other forms provided by the health insurance provider.

3. How Much Can You Expect to Receive?

The Childbirth Lump-Sum Grant is designed to cover a portion of the delivery costs, but the actual amount you receive depends on several factors. On average, the grant is approximately ¥500,000 (¥488,000 for foreign workers giving birth in their home country) but it may be lower depending on the specific hospital or clinic.

If the total delivery costs exceed this amount, the expecting parents will need to cover the difference. However, in cases where the expenses are lower than the grant, the remaining amount may be refunded or not fully paid out to the healthcare facility.

4. How to Apply for the Childbirth Lump-Sum Grant

To apply for the Childbirth Lump-Sum Grant, the expecting mother must follow these steps:

1. Confirm Eligibility: Ensure that you are covered under the appropriate health insurance plan (either public or employer-based).
2. Pre-Registration with the Insurance Provider: In advance of your due date, contact your health insurance provider to complete the necessary forms and pre-register for the childbirth benefit. Some insurers offer online registration, while others may require an in-person visit.
3. Submit Required Documents: Depending on your insurer, you may need to submit medical certificates, proof of pregnancy, and other relevant documents. Be sure to check with your insurance provider to confirm the paperwork needed.
4. Confirmation from the Hospital: Your healthcare provider will typically handle the submission of your benefit application to the insurance provider. They will coordinate directly with the insurer to receive the grant on your behalf, ensuring that the process is streamlined.
5. Receiving the Grant: After the hospital has submitted the paperwork, the grant is usually paid directly to the healthcare provider. If the delivery expenses are lower than the grant amount, the remaining funds may be refunded to the expecting parents.

5. What If You Have an Unexpected Complication During Childbirth?

In cases where complications arise during childbirth, such as an emergency cesarean section or the need for extended hospitalization, the costs may exceed the standard childbirth fees. In these situations, additional insurance coverage or government benefits may be available.

6. Other Related Childbirth Benefits in Japan

In addition to the Childbirth Lump-Sum Grant, Japan offers several other benefits to help parents manage the financial challenges of having a baby. These include:

• Maternity Leave and Pay: Maternity leave benefits in Japan allow mothers to take time off from work before and after childbirth. The maternity leave allowance typically covers a portion of the salary for the first 14 weeks after childbirth, up to a certain percentage of their income.
• Parental Leave: After maternity leave, parents in Japan can apply for parental leave, allowing them to stay home and care for their child. This leave is typically paid at a percentage of the employee’s regular wage, although the exact amount varies based on employment type and length of service.
• Childcare Leave for Fathers: In an effort to promote gender equality, Japan also provides parental leave benefits for fathers. Fathers can take paid leave following the birth of their child, which helps share the caregiving responsibilities and reduces the burden on mothers.
• Child Allowance: The Japanese government also provides a child allowance to eligible families to help with the cost of raising children. This allowance varies depending on the child’s age and the family’s income level.

7. Practical Tips for Maximizing Your Benefits

Here are some practical tips for ensuring you receive the maximum benefits available when giving birth in Japan:

• Register Early: Ensure you register for childbirth benefits as early as possible with your insurance provider. Early registration helps avoid delays and ensures that your benefits are processed smoothly.
• Choose the Right Healthcare Facility: Research different hospitals or clinics to determine their policies regarding the Childbirth Lump-Sum Grant. Some facilities may offer additional services or discounts, while others may charge higher rates for delivery.
• Consult with Your Employer: If you are covered under employer-based health insurance, make sure to consult with your HR department for guidance on applying for childbirth benefits and to confirm the coverage details.
• Utilize Additional Benefits: Don’t forget to explore other financial support programs available in Japan, such as parental leave or the child allowance, to maximize your financial support during and after childbirth.

8. Common Challenges and How to Overcome Them

While Japan’s childbirth benefits are comprehensive, navigating the system can be challenging for foreign residents or those unfamiliar with the process. Some common challenges include:

• Language Barriers: Some foreigners may struggle with language barriers when communicating with healthcare providers or insurance companies. It’s helpful to bring a Japanese-speaking friend or hire a translator when completing necessary paperwork.
• Understanding the Application Process: The application process for the Childbirth Lump-Sum Grant may seem complicated, especially for first-time parents. Consulting with your health insurance provider or an experienced advisor can help streamline the process.
• Navigating Complex Costs: Delivery costs can vary greatly depending on the hospital and medical complications. Be proactive in understanding the cost breakdown and discussing the details with your healthcare provider to avoid unexpected expenses.

Conclusion

The Childbirth and Childcare Lump-Sum Grant is an essential financial benefit for parents expecting a child in Japan. By understanding the application process and being proactive in registering for the benefit, you can maximize your financial support and ensure a smoother transition into parenthood. Whether you are a foreign resident or a Japanese national, the process is designed to be straightforward, and with the right information, you can take full advantage of the available benefits. If you need assistance with the application process or have specific questions about childbirth benefits in Japan, don’t hesitate to reach out HSB JAPAN for more support!

1️⃣ Extensive experience: Over 15 years of service and successful handling of 50,000+ cases.

2️⃣ Clear commitment: 100% of the allowance is transferred directly to the account holder.

3️⃣ Fast processing: Online support for simple, time-saving documentation.

4️⃣ Dedicated support: We handle all issues until the process is complete.

5️⃣ Comprehensive service: Assistance with both maternity benefits and Nenkin retrieval, plus tax refund services.

By incorporating these tips and understanding the full scope of benefits, new parents in Japan can reduce the financial strain of childbirth and focus on their growing families with peace of mind.

What is Gensen? A Simple Guide to Reading the Gensen Paper

Many workers in Japan often wonder what Gensen is, how to obtain it, or why they haven’t received it despite years of working. Don’t worry! HSB JAPAN is here to help decode the issues surrounding the Gensen document. This paper is essential for verifying your income and taxes deducted, and it’s important for tax refunds or other financial matters in Japan. Let us guide you through all the details you need to know!

What is Gensen?

At the end of each year, workers in Japan receive a document detailing their total income and tax deductions. This is called the Gensen Choshu Hyo. It serves as a tax document within Japan’s system, showing the income and taxes paid, and is often used by companies and individuals to verify income and taxes to the authorities.

In December, workers get this document which includes company address, personal details, total amount received, tax deductions, and insurance. It is essential for processing nenkin and tax refunds when returning to Vietnam.

Importance Information on Gensen

1. Total Income (支払金額): This refers to the total income received from the company, including salary, bonuses, housing allowances, etc.
2. Taxable Income After Deductions (給与所得控除後の金額): This amount is the income after deductions for necessary work-related expenses, which are not subject to tax. The total income from the first section is reduced by these allowable deductions.
3. Total Other Income Deductions (所得控除の額の合計額): This includes various tax-exempt deductions:

• Spouse Deduction (配偶者控除): For a non-working spouse or a spouse earning less than 1.03 million yen annually.
• Dependent Deduction (扶養控除): For dependents like parents or in-laws, typically reducing taxable income by 380,000 yen per dependent.
• Spouse Special Deduction (配偶者特別控除): For a spouse with earnings between 1.03 million and 1.6 million yen.
• Life Insurance Deduction (生命保険料の控除額): For life insurance premiums.
• Earthquake Insurance Deduction (地震保険料の控除額): For earthquake insurance premiums.

1. Total Taxes Paid (源泉徴収税額): Reflects the taxes you have paid, calculated based on taxable income.
2. Total Social Insurance Payments (社会保険料等の金額): Includes health insurance, pension insurance, unemployment insurance, and workers’ compensation.

Additional Industry Terms:

• 勤怠（きんたい): Attendance
• 所定 (しょてい): Standard working days for the month
• 出勤 (しゅっきん): Days worked
• 休出 (きゅうしゅつ): Working on a holiday
• 欠勤 (けっきん): Absences (sick leave,  personal reasons, etc.)
• 遅刻時間 (ちこくじかん): Late arrival hours
• 早退時間 (そうたいじかん): Early leave hours
• 私用外出 (しようがいしゅつ): Personal time out during working hours
• 年休 (ねん) or 有休 (ゆうきゅう): Paid vacation days
• 年休残 (ねんきゅうざん): Remaining vacation days
• 病欠 (びょうけつ): Sick leave
• 出勤時間 (しゅっきんじかん): Work hours
• 残業時間 (ざんぎょうじかん): Overtime hours
• 深夜時間 (しんやじかん): Late-night work hours
• 休日時間 (きゅうじつじかん): Work on a holiday

Other terms include various allowances and deductions such as housing, commuting, overtime, and taxes like health insurance, pension, unemployment, and income tax.

Is the Gensen Important?

The Gensen is essential for claiming a tax refund and is required for applying for Nenkin (pension) refunds. For individuals who earn above 1.03 million yen annually and have dependents, it helps reduce taxes through deductions.

What to Do if You Lose Your Gensen Paper? 

If you lose your Gensen, contact your employer’s administrative or accounting department to request a replacement.

How to Apply for Tax Refund with Gensen

To claim Tax Refund, submit the Gensen along with other required documents like your alien registration card, household registration, and transfer forms.

HSB JAPAN’s Tax Representative service allows you to authorize them as your tax representative to handle procedures at the tax office on your behalf. This ensures that you can easily claim your third Nenkin refund even while abroad.

Conclusion

This guide covers essential information on reading and calculating a Japanese payslip, which is crucial for all foreign trainees in Japan. Make sure to remember these details!

As mentioned earlier, resident and income taxes are significant deductions, but there are ways to claim refunds or reductions. Contact HSB Japan’s tax refund services for detailed guidance.

Tax Refund in Japan: A Guide for Foreign Workers

If you’re a foreign worker in Japan, whether you’re a student, intern, or engineer, you are required to pay two main types of taxes: Income Tax (Shotokuzei 所得税) and Residence Tax (Juminzei 住民税). By optimizing your understanding of tax refund in Japan, residence tax, and income tax, you can ensure you are not overpaying and make the most of the benefits available.

Below is a simple breakdown of these taxes and how you can apply for a tax refund in Japan.

1. Income Tax (Shotokuzei 所得税)

What is Income Tax? Income tax in Japan is calculated based on your total annual income. If your income exceeds approximately ¥1,030,000 (around 103 man) per year, you will be required to pay this tax. The more you earn, the higher your income tax liability.

At the end of the year, your employer will summarize your actual income and calculate the actual income tax owed, performing the Nenmatsu Chosei (year-end tax adjustment). This process compares the amount of tax already withheld during the year with the actual tax liability based on your total income for the year. If there is a discrepancy, you will either receive a refund or be asked to pay any additional taxes due.

2. Residence Tax (Juminzei 住民税)

What is Residence Tax?

Residence tax, also known as “municipal tax” or “local tax,” is a tax imposed by the local government to fund social welfare and public services like education, waste management, fire services, etc. This tax is applicable to anyone who earns more than ¥1,000,000 (100 man) per year, regardless of whether they are a student, employee, or foreign worker.

Residence tax is based on your income from the previous year. For newcomers in Japan, if you arrive during your first year, your income for the previous year will be considered as ¥0, so you won’t be required to pay this tax in your first year. However, in the second year, local authorities will calculate the residence tax based on your income from the previous year. This tax is collected starting in June of the following year.

Important Notes on Residence Tax:

• Residence tax is calculated based on the income earned during the previous year (from January 1 to December 31). Therefore, taxes will be due in the local government of your residence as of January 1 of the following year.
• If you change your residence after January 1, the residence tax for the year will still be calculated for the location where you were registered as a resident on January 1.

Example: If you were living in City A on January 1, 2019, and then moved to City B in February 2019, your residence tax for 2019 will be due in City A. The residence tax for City B will start in 2020.

Can You Receive Tax Bills from Both Locations?

No, generally, only the local government where you were registered as a resident on January 1 will collect your residence tax. If you have not updated your address after moving, your previous municipality may continue to send you tax bills. Be sure to register your new address promptly to avoid confusion and ensure that you pay the correct amount.

3. Tax Refund for Foreign Workers in Japan

How to Apply for a Tax Refund (Income and Residence Tax)?

The Japanese government allows individuals to apply for a tax refund or exemption if they meet certain conditions, such as sending money for the support of family members living abroad.

Eligibility for Tax Refunds:

Any taxpayer (regardless of nationality) who has sent money to support family members not residing in Japan may qualify for tax deductions or exemptions. The family members eligible for support are typically those within 6 generations, including spouses and relatives within 3 generations.

Support Conditions:

• Spouse: Send between 5-10 man annually.
• Children aged 16 to 30: Send between 5-10 man annually.
• Elderly over 70: Send between 5-10 man annually.
• Adults aged 30 to 70: Send at least 3,8 man annually.

4. Important Points to Remember

• Tax Refund Procedures: You can apply for tax refunds while still residing in Japan, or even after returning to your home country (Vietnam, for example). However, to apply for a refund for both Income Tax and Residence Tax, it’s recommended to complete the procedure while you are still in Japan.
• Tax Refund Deadline: The refund process is applicable for the last 5 years of tax payments.
• Refund Amount: The amount refunded depends on how many people you support. The more family members you support, the larger the refund.
• Transfer to Vietnamese Accounts: Please note that transfers made to your own bank account in Vietnam will not count as support for family members in Japan.

Conclusion

Japan’s tax system can be complex, but with the right information and proper procedures, you can apply for tax refunds and save money. The taxes in Japan can be quite high, so it’s crucial to understand these procedures and take advantage of any eligible tax refund opportunities.

If you need assistance or are ready to apply for a tax refund, contact HSB Japan’s trusted and professional tax refund services for expert guidance. Call us at 03-5937-2465 for more information or to schedule a consultation.

HOW TO GET THE RESIDENCE TAX EXEMPTION IN 2023

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:

1. 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.
2. 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.
3. 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.
4. 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

1. 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.

 

2. 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.

3. 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.

 

Thu nhập thấp hơn năm trước – Xin giảm miễn thuế cư trú được hay không?

“Thu nhập thấp hơn năm trước người lao động làm việc tại Nhật có thể xin giảm miễn thuế cư trú được hay không?” là một trong các câu hỏi được nhiều bạn ngoại quốc quan tâm khi tham gia vào thị trường lao động Nhật Bản. Thuế cư trú là khoản thuế không còn quá xa lạ đối với tất cả các chủ thể làm việc tại Nhật Bản (du học sinh, kỹ sư hay kể cả các chị em nội trợ làm những công việc bán thời gian. Vậy giảm miễn thuế cư trú là gì, điều kiện để được hưởng quyền lợi này hay thủ tục bao gồm các bước nào, nội dung bài viết dưới đây sẽ gửi đến người đọc các thông tin quan trọng xoay quanh vấn đề này. 

Giảm thuế cư trú là gì? 

Giảm thuế cư trú được thiết lập để hỗ trợ những người có thu nhập thấp gỡ bỏ phần nào gánh nặng từ thuế. Mỗi địa phương sẽ có những quy định về thủ tục, phần trăm miễn giảm thuế hoàn toàn khác nhau. Chẳng hạn như, có những nơi được giảm 100% nhưng có những vùng chỉ được giảm từ 30-50% trên tổng số thuế cư trú.

Vậy giảm thuế cư trú được áp dụng cho các đối tượng nào? 

• Thứ nhất, người lao động nhưng đang trong thời gian hưởng bảo hiểm thất nghiệp. 
• Thứ hai, người lao động hiện có thu nhập thấp hơn năm trước.
• Thứ ba, người bị khuyết tật, chưa thuộc độ tuổi lao động. 
• Thứ tư, người chịu ảnh hưởng do thiên tai gây nên.    
• Cuối cùng, người lao động gửi tiền về phụng dưỡng cho người thân. (Phải có minh chứng tiền gửi) 

Không phải 100% người lao động làm việc tại Nhật đều có thể nhận biết được mình thuộc đối tượng được giảm thuế cư trú vì vậy, các thông tin mà HSB JAPAN chúng tôi đề cập dưới đây phần nào đó sẽ giúp bạn nắm bắt và hiểu rõ hơn về giảm miễn thuế cũng như các thủ tục liên quan. Từ đó, người lao động sẽ có định hướng rõ ràng trong việc hoàn thiện thủ tục xin hoàn/giảm miễn thuế.  

Thủ tục xin giảm miễn thuế cư trú 

Mặc dù mỗi địa phương có những quy định khác nhau về thủ tục, quy trình xử lý hồ sơ nhưng người lao động khi muốn xin giảm thuế cư trú bắt buộc phải nắm được những loại giấy tờ cơ bản sau: 

• Giấy xác nhận tình trạng lao động hoặc minh chứng bạn đang trong thời gian hưởng bảo hiểm thất nghiệp. 
• Giấy xác nhận thu nhập (xác nhận tình trạng thu chi của bạn) 
• Giấy xác nhận số dư (minh chứng số tiền hiện có của bạn)  

khi làm thủ tục xin giảm miễn thuế cư trú, bạn có thể liên hệ đến bộ phận phụ trách thuế thị dân nơi bạn sống và làm việc để rà soát lại một số thông tin cần thiết như: Tại nơi bạn sống, chính quyền địa phương có chính sách giảm thuế thị dân không? Nếu có thì điều kiện được hưởng là gì? Lúc nào bạn có thể tiến hành đăng ký xin giảm miễn thuế? 

Mặc dù, đã có rất nhiều chế độ/chính sách được ban hành tại quốc gia này nhằm hỗ trợ người có hoàn cảnh khó khăn bất kể là người bản địa hay người nước ngoài nhưng rất ít người lao động khi làm việc tại Nhật Bản nắm rõ các quyền lợi của mình. Nhận thức được vấn đề đó, HSB JAPAN được thành lập với sứ mệnh cung cấp các dịch vụ tư vấn tốt nhất cho người lao động làm việc tại Nhật Bản, hỗ trợ khách hàng nhận được khoản miễn giảm thuế tối ưu. 

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.

Tax Refund and Tax Deduction When Attending Furusato nozei

Furusato nozei is not basically a type of tax to pay, instead, it’s a regime in which the residents can distribute their effort in building and developing local regions in Japan through personal monetary donations. In addition, they will also get back the local specialties, like fruits, food, and others, from that locality as a thank-you gift.

However, when engaging in the Furusato nozei, have you ever wondered about the amount of reduced income tax or whether you can get a residence tax refund in Japan?

As a result, in this blog, we will take a further look at the regulations for a tax deduction and refund for Furusato nozei’s participants.

What can you receive when taking part in Furusato nozei?

Besides the thank-you gifts which the local regions give you, you can also get a residence tax deduction according to the amount of money you donated which will be subtracted from 2000 yen.

In addition, you may also be eligible for a refund of a portion of the individual income tax you have paid.

Types of tax deduction and tax refund in Japan in Furusato nozei

In general, there are two types of tax deduction and tax refund in Japan when a taxpayer decides to join the Furusato nozei regime.

• Contribution to up to 5 localities: If you attend Furusato nozei in more than 5 local regions, you will receive a residence tax deduction and individual income tax refund in Japan.
• Contribution to less than 5 localities: In contrast, if you make a contribution to no more than 5 localities, you will only get a residence tax deduction.

Normally, to get a residence tax deduction and income tax refund in Japan, Furusato nozei’s participants must file a tax declaration.

Individual income tax refund in Japan

As mentioned above, you can only get an individual income tax refund in Japan if you engage in Furusato nozei in up to 5 localities. Still, to get a tax refund in Japan, tax declaration procedures are required.

After filing a tax declaration, the refund money will be transferred to your bank account in around one month or one month and a half.

For instance, if you make the declaration procedures on February 15th, then the estimated time you will get your cashback will be at the beginning of March.

Residence tax deduction

First and foremost, you should make clear that individual income tax can be refunded; on the other hand, the residence tax cannot. Instead, it will only be deducted. 

In addition, the maximum amount of money deducted is basically based on your monthly income; hence, it will vary for different residents. At the limit, the tax deducted is calculated as the amount of monetary contribution minus 2000 yen. 

Besides, the deducted residence tax will be valid for the next year after you attend Furusato nozei. 

For instance, you register for Furusato nozei in 2017 and file for tax declaration procedures in February 2018. Then, the tax department will send your tax information to the locality. It also means you will get your residence tax deducted from June 2018 to May 2019.

Finally, when starting the residence tax collection in June, the local tax department will send you a notification form, where you can check the amount of tax deduction. Otherwise, you can check it out in the monthly salary form.

Final thoughts

In general, when attending the Furusato nozei regime, there are several benefits, as you can receive plenty of local gifts, a residence tax deduction, and an income tax refund in Japan.

We hope that all of the information above can help resolve some of your inquiries regarding tax deductions and a tax refund in Japan.

Contact us via our website or Facebook page to get more useful information.

Comprehensive Requirements for Japan Tax Refund in 2022

In “How to Claim Your Income Tax Refund in Japan in 2022,” we show you what an income tax refund is, who is entitled to receive it, and what documents you need to send in an application.

Still, you may wonder if you have to follow any requirements with the documents to get your application accepted.

Hence, in this blog, we will delineate the detailed conditions for the documents you submit to successfully get a Japan tax return.

What is a japan tax refund?

A tax refund is a payment made to a taxpayer to cover any overpayments made to the state governments.

While refunds are frequently seen by taxpayers as a windfall or a lucky break, they frequently represent what amounts to an interest-free loan that the taxpayer paid to the government.

Why should you submit for a Japan tax refund?

Taxpayers receive refunds for a variety of reasons or may even owe the government money in some circumstances.

When too much money is withheld from their taxes, the taxpayer gets a refund at the end of the year. If you overspend your estimated taxes and are self-employed, you also receive a Japan tax refund. 

Still, you might think of this additional revenue as free money, but in reality, it’s more like a loan you gave the IRS without charging interest. If you overestimate your tax liability, you will owe money to the government.

However, you can only get a Japan tax refund if you’ve never applied for a tax reduction.

How can you submit for a Japan tax refund

If you’re a foreigner living in Japan for about one year, you can file and get your Japan tax return in two ways, through the tax department (Zeimusho) and local administration. Or, you can ask somebody for help.

Through the tax department (Zeimusho)

If you decide to handle this process on your own, you can conduct it on the Internet or directly come to the local Tax Department (Zeimusho) or People’s Committee according to where you currently live. They will show you detailed instructions to easily follow.

Ask for help

You can ask your company’s legal officer to apply for a Japan tax refund on your behalf. All you have to do is to provide them with adequate personal documents to make the procedure run smoothly.

Currently, one of the most trustworthy and top-rated services is that of HSB JAPAN. The staff will give you comprehensive assistance in submitting for a Japan tax refund as well as resolve any of your inquiries regarding this topic. 

Otherwise, you can join HSB JAPAN’s Facebook fan page to discuss more Japanese tax refunds and pensions with other foreigners residing in Japan.

Pay taxes in Japan

First and foremost, you must pay two types of taxes when living in Japan. They are individual income tax and residence tax. However, to do this, your annual income must be over 130,000 yen according to Japanese law and currency. Otherwise, you cannot pay taxes and receive a Japan tax return.

Prepare adequate documents to submit for a Japan tax refund

To claim a tax refund in Japan, you will be required to submit some obligatory documents. We will now list them out and explain to you why.

Resident card

You must submit a photocopy of your resident card with both the front and back sides.

It is extremely necessary as your resident card displays information about your name, address, length of stay, and other details. So, make sure you don’t forget this!

Gensen

Gensen, or gensenchoshuhyou, is a withholding tax slip in English.

Particularly, a gensen will be an extremely crucial document if you want to send in an application to get a Japan tax refund. It will display and prove your personal earnings and withheld taxes throughout the year.

In addition, there are some requirements related to your withholding tax slip that you should carefully prepare:

• You will not be able to get a Japan tax refund if gensen doesn’t show the amount of tax withheld from your salary.
• The picture of gensen must include full information (year, your company’s name and address, employee’s name, etc.)
• Only the gensen taken directly from your company is official accepted.

Remittance history

Remittances are money transfers to family or friends in your home countries. These payments play an important role in the lives of many people, supporting families and communities.

Therefore, if you want to apply for a Japan tax refund, you must include these documents as they will prove to the tax office the information you submitted. It includes who you sent remittances to, how much, and the date of transactions.

Moreover, the number of dependents you have also affects the amount of Japan tax refund you receive. For instance, with 1 dependent, you can get a tax refund for income tax at 19,300 Yen and residence tax at 35,500 Yen per year.

Birth Certificates

A birth certificate is a document that lists the full name, date of birth, place of birth, parent’s full name, and other identifying information of a person. It is typically issued by the government agency responsible for vital records. So, why do you need to submit your and your family members’ birth certificates?

That is to prove your relationship with the dependents. For instance, the tax office will check your parents’ information on your birth certificate if you send them remittances. 

However, some of the other tax offices may require you to submit your parents’ marriage certificate so that they can check for further validity.

Cash card bank certificates

When you are living in Japan, you can get a Japan tax refund of your individual income and residence tax by using a Cash Card.

To do this, after presenting your remittance history and passport to the Japanese Tax Office, you will be able to get a Japan tax refund and the money will be transferred to the bank account you submitted. 

Other requirements

Time for getting a Japan tax refund

If you’re looking to get a Japan tax refund, remember that the maximum amount of tax refund you can get is within the last 5 years. It means you can file for a Japan tax refund for each year separately, or you can just wait for about 5 years to withdraw a Japan tax refund in bulk.

If you have any questions about the tax refund process, or if you need help filing your return, contact us via the HSB JAPAN Website or Facebook, and we will answer all of your inquiries.

Remittances to dependents

If you have two or more dependents, you should send them remittances into separate bank accounts. Moreover, the name of the bank accounts must correspond with the dependents’ names you submitted.

In addition, you must have remittance receipts to get a Japan tax refund. It won’t be approved if you come back to your home country and give the money hand-in-hand to your dependents.

Although the more dependents you have to take care of, the more money you get back, you should not list too many dependents as it may be a sign of avoiding paying taxes. Instead, 4 dependents will be an appropriate number.

Final words

All in all, the process of withdrawing a Japan tax refund may not be as complicated and time-consuming as you might think. Just strictly follow the directions and you can get through it with ease. 

How to Claim Your Income Tax Refund in Japan in 2022

If you are foreigners who have lived in Japan for nearly a year, you may hear about the term “income tax refund” and wonder what it is and whether you are eligible to receive it.

This blog will give you a general understanding of income tax and how you can claim your income tax refund in Japan.

What is individual income tax in Japan?

First, you should know the definition of income tax because it’s one of the two main types of taxes you have to pay when living in Japan.

In general, income tax is the tax levied by the government depending on your annual income. Hence, the tax year is from January 1st to December 31st. Meanwhile, the due date for an income tax refund in Japan is normally on March 15th.

Particularly, the levy will be taken out of the paychecks of students, trainees, and workers for contracting businesses. If you are employed by a business without a written contract, you must self-declare your taxes and file them by March 15th.

Who has to pay income tax in Japan?

Everyone living in Japan must pay individual income tax according to law, except for people who have amounts of income below 130,000 yen per year.

On the other hand, other residents have to pay tax as follow:

• Permanent resident taxpayers: the tax is based on their income in Japan and nationwide.
• Non-permanent resident taxpayers: they are taxed on all of their income, excluding foreign-source income (including, potentially, certain capital gains) that is not paid into or remitted to Japan, as well as, potentially, a portion of their foreign-source income.

Who could be entitled to get an income tax refund in Japan?

In three situations, you are allowed to get an income tax refund in Japan.

• You have been a foreigner working in Japan for more than a year with an amount of income more than 130,000 yen per year.
• Your legal spouse is a Japanese person.
• You send remittances back to family dependents in your home country. The more dependents you have to take care of, the more income tax refund in Japan you receive.

How to claim your income tax refund in Japan

It is a significantly important step as we can show you how you can claim your income tax refund in Japan yearly. All you have to do is go to the tax office and prepare adequate documents, including:

1. A photocopy of your residence card (both front and back sides).

2. A photocopy of your last-year withholding tax slip. However, if you have two or more jobs, you need to submit the corresponding number of withholding tax slips to get the right amount of income tax refund in Japan.

3. Any necessary document that can clearly state your relationships with the dependents to whom you send remittances. For example, birth certificates, legal marriage contracts, and others.

4. Your regular remittance receipts

In addition, you have to give them your bank account to receive the income tax refund in Japan after a few weeks.

Finally, to get further information about the income tax refund in Japan in more detail, you can contact HSB JAPAN for full support and consultation.

Final thoughts

All in all, we hope that all of the information above helps you have a brief understanding of the income tax refund in Japan. You can start applying and getting money right now by just following the instructions and preparing all of the required documents to avoid delays.

 

Contact us via Facebook: https://www.facebook.com/taxrefundinjapan

For more information

HSB JAPAN TAX SERVICES

INCOME TAX – RESIDENCE TAX