NewsCase StudiesEvents

Taxation in Japan

Japan

Taxation in Japan

Recent forum posts

 

  1. Academic Writing Services

    Quality Dissertation is well known for delivering high quality assignment writing help, dissertation writing help, coursework writing help and essay writing help to UK university and college students. Our academic assistance service comes at a very affordable price. With a team of writers, specialised in different subject areas, we are able to assist all students for different field of studies.

    Total Posts: 11 Last post by jasminandeson31

  2. BG/SBLC AVAILABLE.

    Dear Sir/Madam,We offer Bank Instrument with one of the most successful and efficient financial instrument PROVIDER that delivers Bank Guarantee (BG) and Standby Letter of Credit (SBLC) from HSBC London, Barclays Bank London, RBS and Deutsche Bank. The provider is based in United Kingdom and provider is capable to deliver on time.The Provider is well tested / trusted and we have been deali

    Total Posts: 1 Last post by kimnyeongsung001

Taxation in Japan

Income Tax

While you live in Japan, it is necessary to pay income tax. When you work for companies and organisations in Japan, the income tax is already deducted at source from your salary. If you are self-employed you will need to file a final tax return.

Taxable income (Yen) Tax Rate Deduction (Yen)
0 – 1,950,000 5%
1,950,000 – 3,300,000 10% 97,500
3,300,000 – 6,950,000 20% 427,500
6,950,000 – 9,000,000 23% 636,000
9,000,000 – 18,000,000 33% 1,536,000
Above 18,000,000 40% 2,796,000

Inhabitant Tax

 

This tax is charged in the middle of the year to those who lived in Japan on the 1st of January of the same year. The calculation of its amount is based on your previous year's income. Therefore if you didn't have any income the year before, there will be no inhabitant tax to pay. In some cases, the inhabitant tax is withheld from your salary by your employer.

 

Corporate Tax

 

Japan coporate tax is 40%.

 

Corporations engaged in economic activities in Japan are subject to taxes on the profits that they generate. Foreign corporations with a business through a branch office are subject to corporation tax on their entire income sources in Japan. Foreign corporations carrying on business not through permanent establishments but through an agent in Japan are subject to corporation tax on the income derived from a business in Japan.

 

Foreign taxation deductions are available whereby taxes paid in a foreign country may be deducted from Japanese taxes owed in order to avoid double taxation between the source country of income and Japan. Measures have also been put in place to avoid double taxation internationally of Japanese branches of foreign corporations, for example, only certain income generated within Japan is subject to taxation in Japan.

Click here to Ask an Expert about Taxation in Japan

Organisations that can assist with Taxation

    You are not logged in!

    Please login or register to ask our experts a question.

    Login now or register.