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Income Tax & Tax Return

All income earners in Japan, residents and non-residents alike, are required to pay income tax, which is a national tax. As the filing of income tax return starts in two weeks, this month's topic is income tax and tax returns.

Your 2010 income tax will be levied on your earnings from January 1 to December 31, i.e. the amount of your total earnings minus deductions from income and multiplied by the appropriate tax rate.

The period for receiving filing assistance from the tax office 2010 is from Wednesday, February 16 to Tuesday, March 15, 2011.

Income tax is calculated and paid by employers by way of withholding income tax from employees' monthly pay and bonuses and then filing a year-end adjustment. Any deficits that resulted from withholding an earner's income tax after deductions for the year will be refunded.

All employed residents are required to file a tax return if any of the followings apply:
1. Your total income from employment exceeded JPY20,000,000 in 2010.
2. You received salaries, etc. from one source only, and your total amount of various types of income (excluding employment and retirement income) exceeded ¥200,000.
3. You received employment income from two or more sources, and the total amount of earnings from employment, etc. not subject to the year-end adjustment or withholding tax and various types of income (excluding employment income and retirement income) exceeded ¥200,000.

Tax Refunds Available by Filing
Even when a person is not legally required to file a final return, if a person has overpaid as a result of taxes withheld at the source or through the prepayment of estimated taxes, a tax refund can be claimed by filing a return for the sake of a refund (refund returns). Because such refund returns can be filed prior to February 15, it is recommended that these returns be filed as early as possible. The following persons are advised to see if they are qualified for refund return.

1. You bought a home by mortgage.
2. You paid a large amount of money for medical expenses.
3. You suffered from theft or natural disasters.
4. Your employment was terminated before the end of 2010, and you were not reemployed during the remaining period of the year.
5. You are eligible for any special tax deductions (Contact your nearest Tax Office to find out about the details.)

Note that owners of a private business such as independent enterprise of commerce, industry, fisheries, agriculture, and independent personal services, etc. are also required to file a tax return.

If you have any questions about the filing of tax returns, please contact your nearest tax office.  For your quick reference, here is the list of Tax Offices in Gunma.

You can also file your tax return from your PC at home by e-Tax.

For further information, please contact your nearest Tax Office and/or Regional Taxation Bureau. Also visit the 2010 INCOME TAX GUIDDE for Foreigners by the National Tax Agency or its Website at the URL address below.

(Effective January 2011)

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