about Taxes
Let’s pay taxes we ought to pay properly.
There are following taxes in Japan. Let’s pay without fail.
Income Tax
Individuals who have income in Japan must pay Income Tax. The income tax is the tax levied on a personal income, and it is levied against all of annual domestic income of an individual regardless of nationality.
Resident Tax
Individuals who have an address in Japan need to pay Resident Tax to municipalities where they reside. The resident tax is the tax which is levied on individuals who have completed the resident registration in a municipality as of January 1st of a relevant year, and there are Prefectural Resident Tax and Municipal Resident Tax.
The resident tax as well as the income tax is levied on all annual domestic income of an individual earning in the previous year regardless of nationality.
※If you do not pay your taxes by their due dates, a demand notice urging your payment will be sent to you by mail, by phone call, or by visiting. If you do not pay yet even if you receive the demand notice, by the provision of a law, your properties may be seized regardless of an amount of taxes you do not pay.
Let’s file a final income tax return.
A final income tax return is the process of calculating a total income of the previous year, working out an income tax based on the total income, and submitting an income tax return to a local tax office. In this case, you may need to pay the income tax together.
The period of the final income tax return is between February 16th and March 15th in the following year of a relevant year.
Purchasing a House and Taxes
When you acquire a house, you have to pay various taxes.
When you acquire a house, Fixed Property Tax (Koteishisan-zei) and City Planning Tax (Toshikeikaku-zei) will be levied on you every year from the following year of your acquisition. In addition, Real Estate Acquisition Tax (Fudousan-Shutoku-zei) and Registration License Tax (Touroku- Menkyo-zei) are imposed at the timing of your acquisition. Also Donation Tax (Zouyo-zei) may be required depending on financing method.
When you plan to purchase a house, you may focus on real-estate price and payment amount of housing loan. However, since the taxes mentioned above are imposed, and they may be expensive according to real-estate, you should make an appropriate financial plan including tax payment. 