Some foreigners find it difficult to understand the contents of Japanese tax returns when they see them. We will provide the “Tax memo” which explains your tax calculations in English.
We will also explain the Japanese tax system, terminology, and tax treatment as it relates to you.
The below is an example of the tax memo.
Most employees are not required to file a final tax return because the calculation and payment of income taxes are completed through the year-end adjustment by the employer.
However, in principle, employees are required to file a final tax return if any of the provisions apply:
1 | Your total earnings from employment exceed 20 million yen. |
2 | You receive salaries and wages from one source only, and they are all subject to tax withholding,and your total income (excluding employment income and retirement income) exceeds 200,000 yen. |
3 | In the case where you receive salaries and wages from two or more sources, and they are all subject to tax withholding, the sum of total earnings from employment (excluding primary salaries) and total income (excluding employment income and retirement income) exceeds 200,000 yen. (Note) However, you need not file a final tax return if your total earnings from employment after subtracting all the tax allowances (excluding the deductions for casualty losses, medical expenses, donations and basic exemption) does not exceed 1.5 million yen, and your total income (excluding employment income and retirement income) is 200,000 yen or less. |
4 | You are a director of a family company or a relative of the director thereof, and receive interest on loans or rent for properties from the company concerned. |
5 | The withholding of income tax, etc., is postponed under the Disaster Exemption Act. |
6 | You receive salaries and wages from those who are not obliged to withhold income tax at source. (*) |
(*)If you work for a foreign company and receive your salary in a bank account abroad, you must file a tax return.
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