www.Aaptaxlaw.com
 
 
 
 

Japan Income Tax Rate for 2017, 2016, 2015, 2014, 2013

Japan Personal Income tax Rate

Taxable Income Yen

Tax Rate

less than 1.95 million yen

5% of taxable income

1.95 to 3.3 million yen

10% of taxable income minus 97,500 yen

3.3 to 6.95 million yen

20% of taxable income minus 427,500 yen

6.95 to 9 million yen

23% of taxable income minus 636,000 yen

9 to 18 million yen

33% of taxable income minus 1,536,000 yen

18 to 40 million yen

40% of taxable income minus 2,796,000 yen

more than 40 million yen

45% of taxable income minus 4,796,000 yen

 

Japan Prefectural Income Tax Rates

Taxable Income Yen

Tax Rate

all

4%

 

Japan Municipal Income Tax Rates

Taxable Income Yen

 

Tax Rate

all

6%

 

Japan Prefectural Enterprise Income Tax Rates (Self employed)

Taxable Income Yen

Tax Rate

all

3% to 5% depending on the type of business

 

Income Tax
Income tax is paid annually on income earned during a calendar year.

For tax purposes, people living in Japan are classified into three categories. This categorization is not related to visa types:

Non-Resident
A person who has lived in Japan for less than one year and does not have his primary base of living in Japan. Non-residents pay taxes only on income from sources in Japan, but not on income from abroad.

Non-Permanent Resident
A person who has lived in Japan for less than five years, but has no intention of living in Japan permanently. Non-permanent residents pay taxes on all income except on income from abroad that does not get sent to Japan.

Permanent Resident
A person who has either lived in Japan for at least five years or has the intention of staying in Japan permanently. Permanent residents pay taxes on all income from Japan and abroad.

Note that tax treaties between Japan and more than 50 countries, including the USA, UK, Canada, Australia, China, South Korea and most European countries, can take precedence over the above guidelines.

Paying taxes
Income tax in Japan is based on a self-assessment system (a person determines the tax amount himself or herself by filing a tax return) in combination with a withholding tax system (taxes are subtracted from salaries and wages and submitted by the employer).

Thanks to the withholding tax system, most employees in Japan do not need to file a tax return. In fact, employees only need to file a tax return if at least one of the following conditions is true:

if they leave Japan before the end of the tax year
if their employer does not withhold taxes (e.g. employer outside Japan)
if they have more than one employer
if their annual income is more than 20,000,000 yen
if they have side income of more than 200,000 yen

Employees, who do not need to file a tax return, will have their income taxes withheld from their salaries by their employer, and an eventual adjustment is made with the year's final salary. People, who are required to file a tax return, such as self-employed persons, must do so at the local tax office (zeimusho), by mail or online (e-Tax) between February 16 and March 15 of the following year. The tax return for 2015 had to be filed between February 16 and March 15, 2016.

Time to pay taxes

If not withheld by the employer, national income taxes are due in full by March 15 of the following year (mid April if you pay by automatic bank transfer), with two prepayments paid in July and November of the running tax year. Prepayments are calculated based on the previous year's income, i.e. you do not pay them during your first year in Japan.

For example, if you had to pay national income taxes for 2015, they had to be fully paid by March 15, 2016 (or April 20, 2016 in case of payment by automatic bank transfer), with the prepayments paid in July and November 2015.

If prefectural and municipal income taxes are not withheld by the employer, they are to be paid in quarterly installments during the following year. For example, the 2015 taxes are paid in four installments in June, August and October 2016 and January 2017.

Types of Taxes in Japan
Taxes in Japan are paid on income, property and consumption on the national, prefectural and municipal levels. Below is a summary of some of the most relevant types of taxes paid by individuals:

Income Tax
Paid annually by individuals on the national, prefectural and municipal levels. Also known as "resident tax" on the prefectural and municipal level. The amount is calculated based on the net income of the individual person.

Enterprise Tax
Prefectural tax paid annually by self-employed individuals engaged in business activities. The amount is calculated based on the person's net income and the type of business.

Property Tax
Municipal tax paid annually by individuals who own land, housing and other types of depreciable assets.

Consumption Tax
Paid by consumers when they purchase goods and services. The rate is currently 8% and is scheduled to be increased to 10% in April 2017.

Vehicle related Taxes
A prefectural automobile tax is paid annually by individuals who own a car, truck or bus. In case of passenger cars, the amount is calculated based on the engine displacement. A municipal light vehicle tax is paid annually by individuals who own motorbikes or other motorized light vehicles. A national motor vehicle tonnage tax is paid by vehicle owners at the time of the mandatory inspections (shaken). A prefectural automobile acquisition tax is paid by persons when they acquire a car.

Liquor, Tobacco and Gasoline Taxes
The national liquor tax is paid by consumers when they purchase alcoholic beverages. National, prefectural and municipal tobacco taxes are paid by consumers when they purchase tobacco products. A national gasoline tax is paid by consumers when they purchase gasoline. The liquor, tobacco and gasoline taxes are included in the prices shown by shops.

Japan Income Tax Rates in 2014 and Deductions

Japan Income Tax Rate for Japan Resident Individual Tax Payers

Taxable Income Yen

Tax Rate

less than 1.95 million yen

5% of taxable income

1.95 to 3.3 million yen

10% of taxable income minus 97,500 yen

3.3 to 6.95 million yen

20% of taxable income exceeding 3.3 million yen plus 232,500 yen

6.95 to 9 million yen

23% of taxable income exceeding 6.95 million yen plus 962,500 yen

9 to 18 million yen

33% of taxable income exceeding 9 million yen plus 1,434,000 yen

More than 18 million yen

40% of taxable income exceeding 18 million yen plus 4,404,000 yen

 

 

Prefectural Income Tax Rate 4% of Taxable Income

Municipal Income Tax Rate 6% of Taxable Income

Prefectural Enterprise Tax Rates for Self employed persons 3% to 5% depending on the type of business

In Japan Income tax is paid annually on income earned during a calendar year.

For tax purposes, people living in Japan are classified into three categories. This categorization is not related to visa types:

Non-Resident
A person who has lived in Japan for less than one year and does not have his primary base of living in Japan. Non-residents pay taxes only on income from sources in Japan, but not on income from abroad.

Non-Permanent Resident
A person who has lived in Japan for less than five years, but has no intention of living in Japan permanently. Non-permanent residents pay taxes on all income except on income from abroad that does not get sent to Japan.

Permanent Resident
A person who has either lived in Japan for at least five years or has the intention of staying in Japan permanently. Permanent residents pay taxes on all income from Japan and abroad.

Note that tax treaties between Japan and more than 50 countries, including the USA, UK, Canada, Australia, China, South Korea and most European countries, can take precedence over the above guidelines.

Japan Taxation Method

Income tax in Japan is based on a self-assessment system (a person determines the tax amount himself or herself by filing a tax return) in combination with a withholding tax system (taxes are subtracted from salaries and wages and submitted by the employer).

Thanks to the withholding tax system, most employees in Japan do not need to file a tax return. In fact, employees only need to file a tax return if at least one of the following conditions is true:

if they leave Japan before the end of the tax year
if their employer does not withhold taxes (e.g. employer outside Japan)
if they have more than one employer
if their annual income is more than 20,000,000 yen
if they have side income of more than 200,000 yen

Employees, who do not need to file a tax return, will have their national income taxes withheld from their salaries by their employer, and an eventual adjustment is made with the year's final salary. prefectural and municipal payments have to be paid separately by the employee upon notification by the municipality.

People, who are required to file a tax return, such as self-employed persons, must do so at the local tax office (zeimusho) between January 16 and March 15 of the following year. The tax return for 2013 had to be filed between January 17 and March 17, 2014. Tax returns can also be filed by mail or online (e-Tax).

Japan Dates of filing Returns / Reporting and Payment

If not withheld by the employer, national income taxes are due in full by March 15 of the following year (mid April if you pay by automatic bank transfer), with two prepayments paid in July and November of the running tax year. Prepayments are calculated based on the previous year's income, i.e. you do not pay them during your first year in Japan.

For example, if you had to pay national income taxes for 2013, they had to be fully paid by March 17, 2014 (or April 22, 2014 in case of payment by automatic bank transfer), with the prepayments already paid in July and November 2013.

prefectural and municipal income taxes are paid in quarterly installments during the following year. For example, the 2013 taxes are paid in four installments due in June, August and October 2014 and January 2015.

Japan Types of Taxes
Taxes in Japan are paid on income, property and consumption on the national, prefectural and municipal levels. Below is a summary of some of the most relevant types of taxes paid by individuals:

Japan Income Tax
Paid annually by individuals on the national, prefectural and municipal levels. Also known as "resident tax" on the prefectural and municipal level. The amount is calculated based on the net income of the individual person.

Japan Enterprise Tax
Prefectural tax paid annually by self-employed individuals engaged in business activities. The amount is calculated based on the person's net income and the type of business.

Japan Property Tax
Municipal tax paid annually by individuals who own land, housing and other types of depreciable assets.

Japan Consumption Tax
Paid by consumers when they purchase goods and services. The rate is currently 8% and is scheduled to be increased to 10% in October 2015.

Japan Vehicle related Taxes
A prefectural automobile tax is paid annually by individuals who own a car, truck or bus. In case of passenger cars, the amount is calculated based on the engine displacement. A municipal light vehicle tax is paid annually by individuals who own motorbikes or other motorized light vehicles. A national motor vehicle tonnage tax is paid by vehicle owners at the time of the mandatory inspections (shaken). A prefectural automobile acquisition tax is paid by persons when they acquire a car.

Japan Liquor, Tobacco and Gasoline Taxes
The national liquor tax is paid by consumers when they purchase alcoholic beverages. National, prefectural and municipal tobacco taxes are paid by consumers when they purchase tobacco products. A national gasoline tax is paid by consumers when they purchase gasoline. The liquor, tobacco and gasoline taxes are included in the prices shown by shops.

 

Tax Rates in the World

Afghanistan Tax Rates

Albania Tax Rates

Algeria Tax Rates

Angola Tax Rates

Argentina Tax Rates

Australia Tax Rates

Austria Tax Rates

 

 

Bangladesh Tax Rates

Brazil Tax Rates

Canada Income tax Rate

Canada Personal Tax

China Tax Rates

Colombia Tax Rates

Congo Tax Rates

Cyprus Tax Rates

Czech Republic Tax Rates

Ethiopia Tax Rates

Egypt Tax Rates

France Tax Rates

Finland Tax Rates

Germany Tax Rates

Ghana Tax Rates

Hong Kong Tax Rates

Hungary Tax Rates

India Income tax Rate

India TDS Rate

Ireland Tax Rates

Israel Tax Rates

Italy Tax Rates

Japan Tax Rates

Jamaica Tax Rates

Jersey Tax Rates

Jordan Tax Rates

Kazakhstan Tax Rates

Kenya Tax Rates

 

 

Korea Tax Rates

Lithuania Tax Rates

Malaysia Tax Rates

Malta Tax Rates

Mauritius Tax Rates

Mexico Tax Rates

Morocco Tax Rates

Myanmar (Burma) Taxes

Nepal Tax Rates

New Zealand Tax Rates

Netherlands Tax Rates

Nigeria Tax Rates

Pakistan Tax Rates

Panama Tax Rates

Philippines Tax Rates

Poland Tax Rates

Portugal Tax Rates

Romania Tax Rates

Income Tax Rate

Singapore Personal Tax

Serbia Tax Rates

Slovakia Tax Rates

Slovenia Tax Rates

South Africa Tax Rates

Spain Tax Rates

Sri Lanka Tax Rates

Sweden Tax Rates

Switzerland Tax Rates

Tanzania Tax Rates

 

 

Thailand Tax Rates

Turkey Tax Rates

Uganda Tax Rates

Ukraine Tax Rates

UK Tax Rates

UK Corporate Tax Rates

Tax Allowances in UK

USA Income Tax Rate

USA Standard Deduction

Vietnam Tax Rates

Zimbabwe Tax Rates

Home     About Us     Privacy Policy     Disclaimer    Contact Us  Sitemap