Global Major Cities Guide

Sections

2. Key Tax Categories

A. Income Tax (所得税 - Shotokuzei)

Who Pays: Residents (those living in Japan for more than one year) and non-residents (on Japan-sourced income only).
Rates: Progressive tax rates ranging from 5% to 45% based on taxable income.
- Taxable income is calculated after deductions (e.g., for dependents, insurance premiums, and work-related expenses).
National Income Tax: Paid to the central government.
Local Inhabitant Tax (住民税 - Juminzei): Paid to Kyoto City and Kyoto Prefecture (see below).

Payment Procedures:

Employees: Income tax is withheld monthly by employers and adjusted at year-end through a process called year-end adjustment (年末調整 - Nenmatsu Chosei).
Self-Employed/Business Owners: File an annual tax return (確定申告 - Kakutei Shinkoku) by March 15 of the following year.
Non-Residents: Tax is withheld at source for Japan-sourced income.

Where to File:

Kyoto residents file at the Kyoto Tax Office (京都税務署 - Kyoto Zeimusho).
- Address: 1-1 Higashikujo Nishisannocho, Minami Ward, Kyoto.
- Phone: +81-75-681-5141
- Website: National Tax Agency

B. Local Inhabitant Tax (住民税 - Juminzei)

Who Pays: Residents of Kyoto (both Japanese and foreign nationals) who have lived in Japan as of January 1 of the tax year.
Rates:
- 6% of taxable income to Kyoto City.
- 4% of taxable income to Kyoto Prefecture.
- A flat per-capita levy of approximately ¥5,000–¥6,000.
Payment Procedures:
- Employees: Withheld by employers and paid monthly.
- Self-Employed/Unemployed: Paid in four installments (June, August, October, and January of the following year).
Where to Pay: Payments can be made at local banks, post offices, or the Kyoto City Hall.

C. Consumption Tax (消費税 - Shouhizei)

Who Pays: Consumers of goods and services in Japan.
Rate: 10% (8% for certain food and beverages).
How It Works: Businesses collect this tax at the point of sale and remit it to the government. As a consumer, you don’t need to file or pay directly.

D. Property Tax (固定資産税 - Koteishisanzei)

Who Pays: Owners of real estate in Kyoto.
Rate: 1.4% of the assessed value of the property.
Payment Procedures: Paid annually in four installments (April, July, December, and February).
Where to Pay: Kyoto City Hall or designated financial institutions.

E. Other Taxes

Inheritance Tax (相続税 - Souzokuzei): Progressive rates from 10% to 55% on inherited assets.
Gift Tax (贈与税 - Zouyozei): Progressive rates from 10% to 55% on gifts exceeding ¥1.1 million annually.

3. Tax Filing and Payment Procedures

A. Filing a Tax Return (確定申告 - Kakutei Shinkoku)

Who Needs to File:
- Self-employed individuals.
- Employees with multiple sources of income.
- Individuals with annual income exceeding ¥20 million.
- Non-residents with Japan-sourced income.
When to File: Between February 16 and March 15 of the following year.
How to File:
- Online via the National Tax Agency’s e-Tax system (available in English).
- In-person at the Kyoto Tax Office.
- By mail (forms can be downloaded from the National Tax Agency website).

B. Payment Methods

Payments can be made via:
- Bank transfer.
- Credit card (via the e-Tax system).
- Convenience stores (for amounts under ¥300,000).
- Direct payment at tax offices or financial institutions.

4. Deadlines

Income Tax Filing: March 15.
Local Inhabitant Tax Payments: June, August, October, and January.
Property Tax Payments: April, July, December, and February.

5. Tax Considerations Specific to Kyoto

A. Local Tax Offices

Kyoto has several tax offices depending on your residential area. The main office is the Kyoto Tax Office, but there are branch offices in areas like Fushimi and Yamashina. Check your local ward office for guidance.

B. Bilingual Support

While most tax documents are in Japanese, the National Tax Agency provides some English resources. The Kyoto Tax Office may have limited English-speaking staff, so consider bringing a Japanese-speaking friend or hiring a tax consultant.
The Kyoto International Community House (Kokoka) offers support for foreign residents, including tax advice and translation services.

C. Cultural Nuances

Punctuality: Deadlines are strictly enforced in Japan. Late payments may incur penalties and interest.
Documentation: Keep all receipts, invoices, and tax-related documents organized, as audits are thorough.
Professional Help: Many expatriates in Kyoto hire bilingual tax accountants to navigate the system.

6. Tax Relief and Deductions

Deductions Available:
- Social insurance premiums (health, pension).
- Life insurance premiums.
- Medical expenses exceeding a certain threshold.
- Charitable donations (including to Kyoto’s cultural preservation funds).
Foreign Tax Credit: If you pay taxes in another country, you may be eligible for a credit to avoid double taxation.

7. Resources for Assistance

National Tax Agency (NTA): https://www.nta.go.jp
Kyoto City Hall Tax Division: For local tax inquiries.
Kyoto International Community House (Kokoka): https://www.kcif.or.jp
Bilingual Tax Accountants: Search for English-speaking accountants in Kyoto for personalized assistance.

8. Tips for Foreign Residents

Register Your Address: Ensure your address is registered at the local ward office, as this determines your local tax obligations.
Understand Residency Status: Your tax obligations depend on whether you are a resident or non-resident.
Plan for Consumption Tax: Prices in Kyoto often include consumption tax, but some stores display pre-tax prices, so check carefully.

By following this guide, you should be well-prepared to navigate Kyoto’s tax system. If you have specific questions or need further assistance, don’t hesitate to reach out to local resources or professional tax consultants.

Kyoto

Taxation