Taxes in Japan

Information regarding Japanese Taxes

Here you can find information regarding Japanese taxes that everyone living in Japan will encounter in their day to day lives such as consumption tax, the Japanese pension system, and taxes on income. If you would like to have a professional advice, please refer to our list of English-Speaking accounting firms (accountants) in Tokyo. 

You can also learn about taxes related to real estate such as property taxes in Japan, taxes property owners living outside of Japan have to pay, real estate rental income tax, and capital gains tax when selling property in Japan.

Furusato Nozei: How to Benefit from Japan's Hometown Tax

Furusato Nōzei, or the hometown tax, is a system by which taxpayers can pay their income or residential tax to a regional area, rather than the area in which they actually reside. Why pay tax somewhere else? Because under this system, regional areas will provide “gifts” as a show of thanks. These g…

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Japanese Consumption Tax (VAT)

In Japan, the current consumption tax was raised to 10% starting October 2019. In this article, we cover the following aspects regarding Japanese Consumption Tax. ・Consumption tax in Japan and how it’s displayed in Shops ・The history of Japanese consumption tax ・Who is eligible to do? Tax free…

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Property Taxes in Japan - Fixed Asset Tax and City Planning Tax

When you own real estate in Japan, a Fixed Asset Tax and City Planning Tax are imposed yearly. These taxes are due regardless if the owner is an individual or a corporation. A notification of the tax due is sent to the owner of the property as of the 1st of January every year. We would like to ex…

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Taxes in Japan: Filing Japanese Income Tax in Tokyo

For many foreign residents living in Japan it’s possible that the confusion and hours or research spent in filing Japanese taxes are negligible since their companies file on their behalf. However, if 1) you’re self-employed, 2) your company happens to be based overseas, or 3) your company doesn’t…

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Income Tax on Rental Real Estate Income

The income received when renting out a real estate property in Japan is counted as part of your taxable income. It may seem frustrating at first if you don't know where to ask or how things are calculated. Here in this easy to follow guide, we will explain what rental income taxes can affect real es…

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Withholding tax on real estate sales by Non-residents

When a real estate property in Japan owned by a non-resident or a foreign corporation is sold, to prevent omission of report on income tax, the person who purchases and pays for the property has to pay the equivalent amount of the income tax withheld upon the transaction to the local taxation offi…

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Withholding Tax for the leasing of real estate owned by Non-residents

When a foreign investor or a real estate owner who does not live in Japan due to overseas assignment rents out real estate in Japan and a lessee is a corporation, the lessee shall pay 20.42% of the rent to the tax office as withholding tax, and the lessor will receive the remaining amount after wi…

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Accounting in Tokyo: Bilingual Accounting & Consulting Firms

Whether you are filing individual tax returns or hoping to establish a new business, financial issues can be complicated. These difficulties will no doubt be compounded upon moving to a country like Japan, where you will face the intricacies of a different financial system on top of linguistic and…

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Japan Consumption Tax Hike 2019: How it Will Affect You

Fall is the season of change — leaves turn red, frost descends, and winter coats start to emerge from storage. This year, however, will bring more than just cozy sweatshirts, as Japan’s government is set to increase the consumption tax to 10% (an increase of 2%) beginning October 1, 2019. With a v…

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