Hiroshima

๐Ÿ’ฐ

Taxes

Sections

1. Types of Taxes in Hiroshima, Japan

Taxes in Japan are broadly categorized into national taxes and local taxes. Hiroshima, as part of Japan, adheres to this system. Hereโ€™s a breakdown:

A. National Taxes

  1. Income Tax (ๆ‰€ๅพ—็จŽ, Shotokuzei)

    • Levied on individual income earned in Japan.
    • Progressive tax rates ranging from 5% to 45%, depending on income brackets.
    • Non-residents are taxed only on Japan-sourced income, while residents are taxed on worldwide income.

  2. Consumption Tax (ๆถˆ่ฒป็จŽ, Shouhizei)

    • A value-added tax (VAT) applied to goods and services.
    • The current rate is 10%, with a reduced rate of 8% for certain food and beverages (excluding alcohol and dining out).

  3. Corporate Tax (ๆณ•ไบบ็จŽ, Houjinzei)

    • Paid by businesses operating in Japan.
    • The effective tax rate for corporations is approximately 30%, though it varies based on company size and income.

  4. Inheritance Tax (็›ธ็ถš็จŽ, Souzokuzei) and Gift Tax (่ดˆไธŽ็จŽ, Zouyozei)

    • Levied on inherited or gifted assets, with progressive rates up to 55%.

B. Local Taxes

  1. Resident Tax (ไฝๆฐ‘็จŽ, Juminzei)

    • Paid by individuals residing in Hiroshima.
    • Comprises a flat-rate portion (ยฅ5,000โ€“ยฅ6,000 annually) and an income-based portion (10% of taxable income).
    • Collected by Hiroshima City or the municipality where you reside.

  2. Fixed Asset Tax (ๅ›บๅฎš่ณ‡็”ฃ็จŽ, Koteishisanzei)

    • Levied on property owners in Hiroshima.
    • The standard rate is 1.4% of the assessed value of the property.

  3. City Planning Tax (้ƒฝๅธ‚่จˆ็”ป็จŽ, Toshikeikakuzei)

    • An additional tax for property owners in urban areas of Hiroshima.
    • The rate is up to 0.3% of the propertyโ€™s assessed value.

  4. Light Vehicle Tax (่ปฝ่‡ชๅ‹•่ปŠ็จŽ, Keijidoushazei)

    • Paid annually by owners of small vehicles or motorcycles.
    • Rates vary depending on the type and size of the vehicle, starting from ยฅ3,000.

2. Tax Costs and Rates

  • Income Tax: Progressive rates (5%โ€“45%) based on income.
  • Resident Tax: Flat rate (~ยฅ5,000) + 10% of taxable income.
  • Consumption Tax: 10% (standard) or 8% (reduced rate).
  • Fixed Asset Tax: 1.4% of property value.
  • City Planning Tax: Up to 0.3% of property value.
  • Light Vehicle Tax: ยฅ3,000โ€“ยฅ10,000 annually, depending on the vehicle.

3. Tax Payment Procedures

The process for paying taxes in Hiroshima depends on the type of tax:

A. Income Tax

  • Filing:
    • Salaried employees typically have taxes withheld by their employer and do not need to file a tax return unless they have additional income or deductions.
    • Freelancers, business owners, and those with additional income must file a tax return during the annual tax filing period (February 16 to March 15).
  • How to File:
    • File online via the e-Tax system (https://www.e-tax.nta.go.jp/) or submit a paper return at the Hiroshima Tax Office.
  • Payment:
    • Payments can be made at banks, convenience stores, or online through the e-Tax system.

B. Resident Tax

  • Filing:
    • Automatically calculated based on your previous yearโ€™s income tax return.
  • Payment:
    • Paid in four installments (June, August, October, and January) via bank transfer, at convenience stores, or through Hiroshima Cityโ€™s online payment system.

C. Fixed Asset Tax and City Planning Tax

  • Filing:
    • No filing is required; the tax office sends a bill to property owners.
  • Payment:
    • Paid annually or in quarterly installments at banks, convenience stores, or online.

D. Consumption Tax

  • Filing:
    • Businesses must file and pay consumption tax if their taxable sales exceed ยฅ10 million in the previous fiscal year.
  • Payment:
    • Paid via the e-Tax system or at financial institutions.

E. Light Vehicle Tax

  • Filing:
    • No filing is required; the tax office sends a bill to vehicle owners.
  • Payment:
    • Paid annually in May at banks, convenience stores, or online.

4. Deadlines

  • Income Tax: Filing and payment deadline is March 15.
  • Resident Tax: Paid in four installments (June, August, October, January).
  • Fixed Asset Tax: Paid annually or in quarterly installments (dates vary by municipality).
  • Light Vehicle Tax: Paid annually in May.
  • Consumption Tax: Filing and payment deadlines depend on the businessโ€™s fiscal year.

5. Local Considerations in Hiroshima

  • Hiroshima Tax Office:

    • The Hiroshima Regional Taxation Bureau oversees national taxes in the region.
    • Address: 6-30 Kami-Hatchobori, Naka-ku, Hiroshima City.
    • Website: National Tax Agency

  • Hiroshima City Office:

    • Handles local taxes like resident tax and fixed asset tax.
    • Address: 1-6-34 Kokutaiji-machi, Naka-ku, Hiroshima City.
    • Website: Hiroshima City Official Website

  • Language Support:

    • Tax offices in Hiroshima may have limited English support. Consider bringing a Japanese-speaking friend or hiring a tax consultant if you are not fluent in Japanese.

  • Tax Consultants:

    • Certified tax accountants (็จŽ็†ๅฃซ, Zeirishi) can assist with filing and tax planning. Look for English-speaking accountants in Hiroshima if needed.

  • Special Exemptions:

    • Hiroshima residents affected by natural disasters (e.g., typhoons or floods) may qualify for tax relief or extensions. Check with the local tax office for details.

6. Tips for Managing Taxes in Hiroshima

  • Keep Records: Maintain receipts and records of income, expenses, and deductions throughout the year.
  • Use Online Systems: The e-Tax system simplifies filing and payment.
  • Understand Deductions: Common deductions include medical expenses, life insurance premiums, and dependents.
  • Seek Assistance: If youโ€™re unfamiliar with Japanโ€™s tax system, consult a tax professional or visit the Hiroshima Tax Office for guidance.

By understanding these details, youโ€™ll be better prepared to handle taxes in Hiroshima, Japan. Let me know if you need further clarification or assistance!