Hiroshima

A. Income Tax

1. National Income Tax:

   • This is a progressive tax levied by the national government.
   • Tax Rates: Ranges from 5% to 45%, depending on your annual taxable income.
     • Example:
       • Up to ¥1,950,000: 5%
       • ¥1,950,001 to ¥3,300,000: 10%
       • ¥3,300,001 to ¥6,950,000: 20%
       • Above ¥40,000,000: 45%
   • Deductions: Standard deductions include a basic exemption of ¥480,000, dependent deductions, and work-related expenses.

2. Local Income Tax:

   • This is levied by Hiroshima Prefecture and the city of Hiroshima.
   • Tax Rate: Flat 10% of your taxable income (4% for prefectural tax and 6% for municipal tax).

3. Filing and Payment:

   • If you are a salaried employee, your employer will withhold income tax from your salary and remit it to the tax office (referred to as "withholding tax").
   • If you are self-employed or have additional income, you must file a tax return during the annual tax filing period (February 16 to March 15).
   • Where to File: Hiroshima Tax Office (広島税務署)
     • Address: 2-31-2 Futabanosato, Higashi-ku, Hiroshima
     • Phone: +81-82-227-1155
   • Payment Methods: Bank transfer, credit card, or at convenience stores.

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B. Consumption Tax (VAT)

• Japan’s consumption tax (similar to VAT) is 10% on most goods and services.
• Some items, such as food and non-alcoholic beverages, are taxed at a reduced rate of 8%.
• This tax is automatically included in the price of goods and services, so you don’t need to file or pay it separately unless you are a business owner.

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C. Other Taxes

1. Resident Tax:

   • This is a local tax paid to Hiroshima City and Hiroshima Prefecture.
   • It is calculated based on your income from the previous year.
   • Annual Cost: Typically around ¥100,000 to ¥300,000 for most workers, depending on income.
   • Payment is made in four installments (June, August, October, and January) or deducted from your salary if you are employed.

2. Inheritance and Gift Tax:

   • If you inherit property or receive a gift while living in Hiroshima, you may be subject to these taxes. Rates range from 10% to 55%, depending on the value.

3. Fixed Asset Tax:

   • If you own property in Hiroshima, you will pay an annual fixed asset tax of 1.4% of the property’s assessed value.

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2. Social Security in Hiroshima, Japan

Japan’s social security system is comprehensive and mandatory for all residents, including expatriates. It includes health insurance, pension, unemployment insurance, and workers’ compensation. Here’s what you need to know:

A. Health Insurance (Kenko Hoken - 健康保険)

1. Types:

   • Employee Health Insurance (Shakai Hoken): For salaried workers, provided through your employer.
   • National Health Insurance (Kokumin Kenko Hoken): For self-employed individuals, students, or those not covered by employer insurance.

2. Costs:

   • Employee Health Insurance: Premiums are approximately 10% of your salary, split equally between you and your employer.
   • National Health Insurance: Premiums vary based on your income, typically ranging from ¥10,000 to ¥50,000 per month.

3. Coverage:

   • Covers 70% of medical expenses (you pay 30% out-of-pocket).
   • Includes doctor visits, hospital stays, prescriptions, and some dental care.

4. Enrollment:

   • If employed, your employer will enroll you.
   • If self-employed, visit your local ward office (区役所) in Hiroshima to register.
     • Example: Hiroshima City Hall (中区役所)
       • Address: 6-34 Kokutaiji-machi, Naka-ku, Hiroshima
       • Phone: +81-82-504-2111

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B. Pension System (Nenkin - 年金)

1. Types:

   • Employee Pension Insurance (Kosei Nenkin): For salaried workers.
   • National Pension (Kokumin Nenkin): For self-employed individuals or those not covered by employer insurance.

2. Costs:

   • Employee Pension: Approximately 18.3% of your salary, split equally between you and your employer.
   • National Pension: Flat rate of ¥16,520 per month (as of 2023).

3. Benefits:

   • Provides retirement income, disability benefits, and survivor benefits.
   • You must contribute for at least 10 years to qualify for retirement benefits.

4. Enrollment:

   • Employers handle enrollment for salaried workers.
   • Self-employed individuals must register at their local ward office.

5. Lump-Sum Withdrawal for Foreigners:

   • If you leave Japan permanently, you may be eligible for a partial refund of your pension contributions. Apply within two years of leaving Japan.

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C. Unemployment Insurance (Koyo Hoken - 雇用保険)

1. Eligibility:

   • Mandatory for all employees working at least 20 hours per week.
   • Not applicable to self-employed individuals.

2. Costs:

   • Premiums are approximately 0.6% of your salary, deducted from your paycheck.

3. Benefits:

   • Provides financial support if you lose your job.
   • The amount and duration depend on your salary and length of employment.

4. Enrollment:

   • Your employer will handle enrollment.

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D. Workers’ Compensation Insurance (Rousai Hoken - 労災保険)

1. Eligibility:

   • Covers all employees for work-related injuries or illnesses.

2. Costs:

   • Fully paid by the employer (no cost to employees).

3. Benefits:

   • Covers medical expenses, lost wages, and disability compensation.

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3. Practical Considerations for Hiroshima

• Language Barrier: Most tax and social security documents are in Japanese. Consider hiring a tax consultant or interpreter if you are not fluent in Japanese.
• Local Ward Offices: Hiroshima is divided into several wards (e.g., Naka-ku, Minami-ku, Higashi-ku). Each ward office provides assistance with taxes and social security enrollment.
• Tax Consultants: For complex tax situations, consult a licensed tax accountant (Zeirishi - 税理士). Fees typically range from ¥10,000 to ¥50,000, depending on the complexity of your case.
• My Number System: Japan uses a unique identification number system called "My Number" (マイナンバー) for tax and social security purposes. Ensure you register for and keep your My Number card.

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4. Points of Contact

• Hiroshima Tax Office:
  • Phone: +81-82-227-1155
  • Website: National Tax Agency
• Hiroshima City Hall:
  • Phone: +81-82-504-2111
  • Website: Hiroshima City Official Website
• Japan Pension Service (Hiroshima Office):
  • Phone: +81-82-228-3131
  • Website: Japan Pension Service

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By understanding and following these guidelines, you can ensure compliance with Hiroshima’s tax and social security systems while taking full advantage of the benefits available to you.