Fukuoka

๐Ÿ’ฐ

Taxes

Information on local taxes such as residency tax, income tax, and understanding the tax filing process in Fukuoka.

Sections

A. Income Tax (National Tax)

  • Who Pays: Anyone earning income in Japan, including salaried workers, self-employed individuals, and business owners.
  • Rates: Income tax in Japan is progressive, ranging from 5% to 45%, depending on your annual taxable income. Below is the 2023 tax bracket:
    • Up to ยฅ1,950,000: 5%
    • ยฅ1,950,001โ€“ยฅ3,300,000: 10%
    • ยฅ3,300,001โ€“ยฅ6,950,000: 20%
    • ยฅ6,950,001โ€“ยฅ9,000,000: 23%
    • ยฅ9,000,001โ€“ยฅ18,000,000: 33%
    • ยฅ18,000,001โ€“ยฅ40,000,000: 40%
    • Over ยฅ40,000,000: 45%
  • Deductions: Common deductions include social insurance premiums, medical expenses, and dependent family members.

B. Resident Tax (Local Tax)

  • Who Pays: Residents of Fukuoka as of January 1 of the tax year.
  • Rates: Resident tax is a flat rate of 10% of your previous yearโ€™s income. It is split into:
    • 6% for Fukuoka Prefecture
    • 4% for Fukuoka City
  • Fixed Amount: In addition to the percentage, there is a fixed amount of ยฅ5,000 (ยฅ1,500 for the prefecture and ยฅ3,500 for the city).

C. Consumption Tax (National Tax)

  • Who Pays: Consumers of goods and services in Japan.
  • Rate: The current consumption tax rate is 10%, with a reduced rate of 8% for certain food and beverages (excluding alcohol and dining out).
  • Local Consideration: Fukuoka follows the national consumption tax rate, so there are no additional local variations.

D. Other Taxes

  • Property Tax (ๅ›บๅฎš่ณ‡็”ฃ็จŽ, Kotei Shisan-zei): If you own property in Fukuoka, you will pay an annual tax of 1.4% of the assessed value.
  • Vehicle Tax (่‡ชๅ‹•่ปŠ็จŽ, Jidousha-zei): If you own a car, you will pay an annual tax based on the engine size, ranging from ยฅ10,800 to ยฅ111,000.
  • Inheritance Tax (็›ธ็ถš็จŽ, Souzoku-zei): This applies to inherited assets and is progressive, ranging from 10% to 55%.

3. Tax Filing Procedures

A. Who Needs to File Taxes?

  • Salaried Employees: Most salaried workers in Fukuoka do not need to file taxes because their employer withholds and pays taxes on their behalf. However, you must file a tax return if:
    • You have additional income (e.g., freelance work, investments).
    • You want to claim deductions (e.g., medical expenses, donations).
  • Self-Employed Individuals: Must file a tax return annually.
  • Non-Residents: If you earn income in Japan, you may need to file taxes, depending on your residency status.

B. How to File Taxes

  1. Gather Necessary Documents:
    • Income statements (ๆบๆณ‰ๅพดๅŽ็ฅจ, Gensen Choushuu-hyou) from your employer.
    • Receipts for deductions (e.g., medical expenses, insurance premiums).
    • Bank account details for refunds.
  2. Complete the Tax Return Form:
    • Use the ็ขบๅฎš็”ณๅ‘Šๆ›ธ (Kakutei Shinkoku-sho) form, available at tax offices or online.
  3. Submit Your Tax Return:
    • Online: Use the National Tax Agencyโ€™s e-Tax system (https://www.e-tax.nta.go.jp/).
    • In-Person: Visit the Fukuoka Tax Office (details below).
    • By Mail: Send your completed form to the relevant tax office.

C. Deadlines

  • Income Tax Filing Period: February 16 to March 15 of the following year.
  • Resident Tax Payment: Paid in four installments (June, August, October, and January of the following year).
  • Consumption Tax: Businesses must file by March 31.

4. Local Considerations in Fukuoka

A. Multilingual Support

  • Fukuoka is an international city with a growing expat community. The Fukuoka City International Foundation offers support for foreign residents, including tax guidance in English, Chinese, and Korean.

B. Tax Office Locations

  • Fukuoka Tax Office (็ฆๅฒก็จŽๅ‹™็ฝฒ, Fukuoka Zeimusho):

    • Address: 1-1-35 Maidashi, Higashi-ku, Fukuoka City, Fukuoka Prefecture 812-8651
    • Phone: 092-641-8171
    • Hours: Monday to Friday, 8:30 AMโ€“5:00 PM (closed on weekends and public holidays)

  • Fukuoka City Hall Tax Division:

    • Address: 1-8-1 Tenjin, Chuo-ku, Fukuoka City, Fukuoka Prefecture 810-8620
    • Phone: 092-711-4111

C. Online Resources

  • National Tax Agency (NTA): The official website (https://www.nta.go.jp/) provides detailed tax information and access to the e-Tax system.
  • Fukuoka City Website: Offers local tax information and updates (https://www.city.fukuoka.lg.jp/).

D. Tax Seminars

  • The Fukuoka City International Foundation occasionally hosts tax seminars for foreign residents, explaining the Japanese tax system and how to file returns.

5. Tips for Managing Taxes in Fukuoka

  • Keep Records: Maintain receipts and documents for deductions throughout the year.
  • Use e-Tax: Filing online is faster and more convenient, especially for those with limited Japanese proficiency.
  • Seek Assistance: If youโ€™re unsure about filing, consult a tax professional or visit the Fukuoka City International Foundation for guidance.
  • Plan for Resident Tax: Since resident tax is based on the previous yearโ€™s income, budget accordingly to avoid surprises.

By understanding the tax system and utilizing the resources available in Fukuoka, you can ensure compliance and potentially save money through deductions and exemptions. If you need further assistance, donโ€™t hesitate to reach out to local tax offices or international support organizations.