On a national, prefectural and municipal level, to enable people to lead safe and comfortable lives, taxes contribute to not only the promotion of culture, education and industry, road maintenance and the provision of substantial welfare, but also public services and facilities, the provision of which individual members of society are not responsible for. It could be said that taxes are like membership fees that we pay in order to live as a member of society.
Japan consists of the nation, prefectures and municipalities. Each organization provides various kinds of service as required. Every citizen, in return, is required to observe the deadline for payment of tax. Tax is used in order to improve every citizen’s quality of life. Payment of tax in Japan can be divided into three separate areas. Tax that is paid to the Tax Office: National Tax, tax that is paid to the Prefectural Tax Office and Automobile Tax Office: Prefectural Tax, and tax which is paid to the City, Town, or Village: Municipal Tax.
Major taxes which residents are required to pay are as follows.
Income Tax (SHOTOKU-ZEI) Prefectural/Municipal Tax (KENMIN-ZEI/SHICHOSONMIN-ZEI) National Health Insurance Tax (KOKUMIN KENKO HOKEN-ZEI) Vehicle Tax (JIDOSHA-ZEI) Light Motor Vehicle Tax (KEI JIDOSHA-ZEI) Real-Estate Acquisition Tax (FUDOSAN SHUTOKU-ZEI) Fixed Property Tax (KOTEI SHISAN-ZEI) Consumption Tax (SHOHI-ZEI) Others
In cases where tax is not paid by the due date, or a false tax declaration is made, arrears or additional tax maybe charged on top of the original amount. When tax is not paid by the due date a reminder letter will be sent. If even after the reminder letter payment is still not received, assets may be seized.