Taxes in Japan

Information regarding Japanese Taxes

Here you can find information regarding Japanese taxes that everyone living in Japan will encounter in their day to day lives such as consumption tax, the Japanese pension system, and taxes on income. If you would like to have a professional advice, please refer to our list of English-Speaking accounting firms (accountants) in Tokyo. 

You can also learn about taxes related to real estate such as property taxes in Japan, taxes property owners living outside of Japan have to pay, real estate rental income tax, and capital gains tax when selling property in Japan.

Japanese Consumption Tax (VAT)

In Japan, the current consumption tax was raised to 10% starting October 2019. In this article, we cover the following aspects regarding Japanese Consumption Tax. ・Consumption tax in Japan and how it’s displayed in Shops ・The history of Japanese consumption tax ・Who is eligible to do? Tax fre…

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Property Taxes in Japan - Fixed Asset Tax and City Planning Tax

When you own real estate in Japan, a Fixed Asset Tax and City Planning Tax are imposed yearly. These taxes are due regardless if the owner is an individual or a corporation. A notification of the tax due is sent to the owner of the property as of the 1st of January every year. We would like to expl…

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Taxes in Japan: Filing Japanese Income Tax in Tokyo

Benjamin Franklin aptly stated: “ this world nothing can be said to be certain, except death and taxes”. While tax season is dreaded no matter what country you live in, for many lucky foreign residents living in Japan it’s possible that the confusion and hours or research spent in filing Japan…

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Income Tax on Rental Real Estate Income

The income received when renting out a real estate property in Japan is counted as part of your taxable income. It may seem frustrating at first if you don't know where to ask or how things are calculated. Here in this easy to follow guide, we will explain what rental income taxes can affect real es…

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Withholding tax on real estate sales by Non-residents

TAX imposed when a foreigner (non-resident) sells the real estate property in Japan. When a real estate property in Japan owned by a non-resident or a foreign corporation is sold, to prevent omission of report on income tax, the person who purchases and pays for the property has to pay the equivale…

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Consumption Tax Reward Point Program for Cashless Payments

What is the Japanese government’s Reward Point Program for Cashless Payments? This promotion started on the 1st of October 2019 and will continue until the 30th of July 2020. If you make purchases using a cashless payment method, such as electronic money or credit cards, you will receive 2% or 5…

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Withholding Tax for the leasing of real estate owned by Non-residents

There has been an increase in the number of foreigners purchasing real estate in Japan since it was announced that the 2020 Olympics will be held in Tokyo. The majority of our company’s real estate sales and lease transaction mediations have been for foreign customers. We have recently observed that…

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Accounting in Tokyo: Bilingual Accounting & Consulting Firms

Whether you are filing individual tax returns or hoping to establish a new business, financial issues can be complicated. These difficulties will no doubt be compounded upon moving to a country like Japan, where you will face the intricacies of a different financial system on top of linguistic and…

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Japan Consumption Tax Hike 2019: How it Will Affect You

Fall is the season of change — leaves turn red, frost descends, and winter coats start to emerge from storage. This year, however, will bring more than just cozy sweatshirts, as Japan’s government is set to increase the consumption tax to 10% (an increase of 2%) beginning October 1, 2019. With a v…

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Furusato Nozei: How to Benefit from Japan's Hometown Tax

Furusato Nōzei, or the hometown tax, is a system by which taxpayers can pay their income or residential tax to a regional area, rather than the area in which they actually reside. Why pay tax somewhere else? Because under this system, regional areas will provide “gifts” as a show of thanks. These g…

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