Useful Information

Local tax

2022.08.06

Local tax

Taxes can be roughly divided into national taxes and local taxes. This time, let’s learn about local taxes in detail.

Local tax includes inhabitant tax and automobile tax.

If you want to know about the overview of tax, please visit this website
→ https://social-b.net/baiyu/en/tax0730en/

 

Inhabitant tax

Inhabitant tax is a tax you pay to the prefecture/ city government where you live now. The amount of payment is calculated based on yout income of last year. This tax is like a membership fee to be a resident of the municipalities. This tax has two types; prefectural tax and city tax. These two taxes are collectively called inhabitant tax. Employees have taxes deducted from their monthly payments. Moreover, those who lived in other prefectures or cities in previous years have to pay this tax at a bank or a post office after they received tax bill. Those who receive public assistance or those who got less salary than the previous year do not have to pay it or can pay less amount.

How to decide the amount of payment of inhabitant tax and those who do not have to pay

Prefectural tax and city tax of individuals are consisted of per capita rate and per income rate. Per capita rate is the system that everyone pays the same amount of tax even if they get a different amount of salary. Per income rate is the system that people pay different amounts of tax and the amount is determined by their salary. The more amount of salary people get, the more amount of tax you will pay.

If you meet the following requirements, you can be exempt from those taxes.

  • Those who receive public assistance
  • Disabled people, minors, widows or widowers whose income in the previous year is under one million and two hundred fifty thousand yen the previous year.
  • Those who get a salary under the amount of money calculated in the following calculation.

Three hundred fifty thousand yen× (Spouse of the same household (husband or wife) + number of dependent relatives (number of children, etc.) + 1)+ two hundred and ten thousand yen

  • If you meet the following requirements, you can be exempt from income rate system.

Three hundred and fifty thousand ×(Spouse of the same household (husband or wife) + number of dependent relatives (number of children, etc.) + 1)+ three hundred and twenty  thousand yen

Declaration of inhabitant tax

You must file your tax returns on inabitant tax at a city hall from February 15 to March 15 every year. However, those who did not get any income except for income or pension do not have to file their tax returns. If you declared income tax, you do not have to file your tax returns.

If you want to know about tax return in detail, please visit this webpage. ≪https://social-b.net/baiyu/en/national-tax0813/≫

Payment methods of inhabitant tax

  • Special collection

You pay the tax by having your tax deducted from your salary. Your company collects the tax and pays them by 10th of the following month.

  • Normal collection

You pay this tax by yourself. Self-employed, farmers, self-employed people, etc. pay this tax four times per year according to the tax payment notice sent by the municipal office in June. You can pay the tax at the nearest bank or post office. You can also use the account transfer (automatic payment) method, that is set to be automatically debited from your bank or post office account and pays off.

Automobile tax/Light vehicle tax

As of April 1 of each year, those who own automobiles, motorized bicycles, the small sized special vehicle, mini-vehicles, or two-wheeled small car pay this tax. After you receive tax notification, you pay this tax at a post office or a bank by the deadline.

Late fee

If you cannot pay taxes by the deadline, you will have to pay the late fee in addition to the taxes themselves.

 

  • Please also refer to the following page.

Tax  https://social-b.net/baiyu/en/tax0730en/

National tax https://social-b.net/baiyu/en/national-tax0813/

Withholding Tax Statement (tax-income certificate)

https://social-b.net/baiyu/en/gensenchoshuhyoen/