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Is it true that even foreign workers must pay taxes? If so, what kinds of taxes must we pay?
Twenty percent of my monthly salary is deducted as income tax every month. I think that a 20% tax rate is too steep. Also, my company does not issue records of withholding even if I demand them.
I moved this year, but I received a letter notifying me that I should pay municipal tax from the municipal office of the city where I lived previously. Why?
I am planning to return to my country in November, so I can't get a tax refund based on the year-end adjustment. What should I do?


Is it true that even foreign workers must pay taxes? If so, what kinds of taxes must we pay?


  If you work in Japan, you must pay income tax (levied on personal income such as wages paid by your company and so forth) and residential tax (levied by a prefectural government and by a city, town or village government) and other taxes. There is no difference between Japanese or foreigners on this matter.

  The municipal tax levied by your local municipality is to be paid to the city, town or village where you live as of January 1st of the year. Even incomes earned by college students and precollege students are taxed.

  For more information on income tax, inquire at the nearest Tax Office. For residential tax, inquire at the Taxation Section of the relevant municipal (city, town or village) office.

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Twenty percent of my monthly salary is deducted as income tax every month. I think that a 20% tax rate is too steep. Also, my company does not issue records of withholding even if I demand them.


  In the Income Tax Act, it is stipulated "Income tax rate shall be 20% for a non-resident."

  A "resident" means, in principle, an individual who resides in Japan for more than one year continuously; "non-resident" applies to all others.

  If you continue to live in Japan for more than one year, you become a resident. Your income tax rate will then be the same as for Japanese. Your company is obliged to issue records of withholding to you. If the company fails to do so, you may choose to file a "Notification of Non-Issuance of Records of Withholding" at a Tax Office.

  For more information, inquire at the nearest Tax Office.

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I moved this year, but I received a letter notifying me that I should pay municipal tax from the municipal office of the city where I lived previously. Why?

  You must pay tax for the municipality in which you lived as of January 1st of the current year for the amount earned from January through December of the pervious year.

  On the basis of the notification sent by a municipality office, you should pay by either of the following methods.
  1. From June of this year to May of next year, a certain amount is deducted from your monthly salary by the company for which you are currently working.
  2. You pay the tax by yourself using "tax payment slips" provided by the municipality office.
  If you leave the company you have been working for, making it impossible for the company to deduct taxes, you must pay the remaining amount using payment slips. Also, if you have earned income other than salaries, you must pay the municipal tax on that income using payment slips.

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I am planning to return to my country in November, so I can't get a tax refund based on the year-end adjustment. What should I do?

  You can file a final return at your local taxation office before you return to your country. In such case, you can appoint either a proxy who is entrusted only with receipt of your tax refund after your departure from Japan, or a tax agent who is entrusted with all taxation matters after your departure.

  You can appoint as your tax agent a person living in Japan who can make tax payments and receive tax refunds on behalf of his or her client. If you appoint such an agent, you must file the Notification of Appointment of Tax Agent form at the taxation office. After this notification is filed at the taxation office, all documents concerning national taxes will be sent to the agent, who will then carry out such tax-related duties as filing of forms on behalf of the taxpayer, making tax payments and receiving refunds.

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