Tax Refund
TAX REFUND FOR BUSINESSES & INDIVIDUALS
Any foreigner who is currently living and working as an international student, intern or an engineer, must pay 2 main taxes: Income Tax (Shotokuzei 所得税) and Citizenship/Residence Tax (Juminzei) 住民税). However, these 2 taxes to be paid in Japan can be reduced or even refunded within 5 years.
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 | ¥ 109,600 |
3 dependents | ¥ 57,900 | ¥ 106,500 | ¥ 164,400 |
*This is an approximate estimation based on the tax calculation formula of the National Tax Agency Japan
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. (The average Japanese Tax Refund is ¥111000)
HSB JAPAN, together with experienced lawyers and tax advisors in the field of tax management, represents thousands of foreign individual clients as well as small and medium-sized enterprises to solve their tax problems.
Tax related issues in Japan with comprehensive support. Our principle is to bring convenient, reliable and transparent services to our customers.
HSB JAPAN Tax Services
- Refund of the income tax and residential tax return in 5 years (foreigners or Japanese whose spouse is a foreigner)
- 20.42% Tax refund for lump-sum withdrawal payments (Nenkin).
- Income tax return for foreigners who quit from work or left Japan.
- Corporate tax finalization
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.
