Osaka

1. Tax Categories in Osaka, Japan

A. Income Tax (所得税 - Shotokuzei)

• Who Pays: Individuals earning income in Japan, including residents and non-residents with Japan-sourced income.
• Tax Rates:
  • Income tax in Japan is progressive, ranging from 5% to 45% depending on your income bracket.
  • Non-residents are taxed at a flat rate of 20.42% on Japan-sourced income.
• National Tax: Income tax is collected by the national government.

B. Local Residence Tax (住民税 - Juminzei)

• Who Pays: Residents of Osaka (both Japanese nationals and foreign residents) who have lived in Japan as of January 1 of the tax year.
• Tax Rates:
  • A flat 10% of your previous year’s income.
  • This includes a per capita levy (around ¥5,000 annually) and an income-based levy.
• Local Tax: Collected by the Osaka City or Prefecture government.

C. Consumption Tax (消費税 - Shouhizei)

• Who Pays: Consumers in Japan, including residents and visitors.
• Tax Rate:
  • The standard rate is 10% (8% for food and non-alcoholic beverages).
  • Businesses are responsible for collecting and remitting this tax.
• Scope: Applies to most goods and services, including dining, shopping, and utilities.

D. Inheritance Tax (相続税 - Souzokuzei)

• Who Pays: Individuals inheriting assets in Japan.
• Tax Rates: Progressive rates ranging from 10% to 55% depending on the value of the inheritance.
• Exemptions: Certain deductions apply, such as ¥30 million plus ¥6 million per legal heir.

E. Other Taxes

• Fixed Asset Tax (固定資産税 - Koteishisanzei): Paid by property owners in Osaka. The rate is 1.4% of the assessed value of the property.
• Automobile Tax (自動車税 - Jidoushazei): Paid annually by vehicle owners. Rates vary based on the type and size of the vehicle.

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2. Tax Payment Procedures in Osaka

A. Income Tax

1. Filing Process:
   • Salaried employees typically have their taxes withheld by their employer through a process called Year-End Adjustment (年末調整 - Nenmatsu Chousei).
   • Freelancers, self-employed individuals, and those with additional income must file a Final Tax Return (確定申告 - Kakutei Shinkoku).
2. Where to File:
   • Osaka Tax Office (大阪税務署 - Osaka Zeimusho).
   • You can also file online via the e-Tax system (https://www.e-tax.nta.go.jp/).
3. Deadlines:
   • Filing period: February 16 to March 15 of the following year.
   • Payment deadline: Same as the filing deadline.

B. Local Residence Tax

1. Filing Process:
   • If you are a salaried employee, your employer will typically handle this through Special Collection (特別徴収 - Tokubetsu Choushuu).
   • If self-employed or unemployed, you must file a declaration with your local ward office.
2. Where to Pay:
   • Payments can be made at your local ward office, banks, or convenience stores.
3. Deadlines:
   • Payment is typically divided into four installments: June, August, October, and January.

C. Consumption Tax

• Businesses must file and remit consumption tax returns annually or quarterly, depending on their revenue.
• Consumers pay this tax at the point of purchase.

D. Fixed Asset Tax

• Property owners receive a tax notice in April and must pay in installments (April, July, December, and February).

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3. Deductions and Exemptions

A. Income Tax Deductions

1. Basic Deduction (基礎控除 - Kiso Koujo): ¥480,000 for most taxpayers.
2. Dependent Deduction (扶養控除 - Fuyou Koujo): ¥380,000 per dependent.
3. Social Insurance Premiums (社会保険料 - Shakai Hokenryou): Fully deductible.
4. Medical Expenses Deduction (医療費控除 - Iryouhi Koujo): For medical expenses exceeding ¥100,000 or 5% of your income.
5. Charitable Contributions (寄付金控除 - Kifukin Koujo): Donations to approved organizations.

B. Local Residence Tax Deductions

• Similar to income tax deductions, with additional deductions for disaster recovery contributions or specific local programs.

C. Consumption Tax Exemptions

• Small businesses with annual revenue under ¥10 million are exempt from collecting and remitting consumption tax.

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4. Local Government Offices and Service Centers in Osaka

A. Osaka Regional Taxation Bureau (大阪国税局 - Osaka Kokuzeikyoku)

• Address: 1-5-63 Otemae, Chuo-ku, Osaka 540-8541
• Phone: 06-6941-5331
• Website: National Tax Agency
• Handles national taxes, including income tax and consumption tax.

B. Osaka City Ward Offices (区役所 - Kuyakusho)

• Each ward in Osaka has its own office for handling local residence tax and other municipal services.
• Example: Osaka City Nishi Ward Office (大阪市西区役所)
  • Address: 1-5-44 Tosabori, Nishi-ku, Osaka 550-8555
  • Phone: 06-6532-9986

C. Osaka Prefectural Tax Office (大阪府税事務所 - Osaka Fuzei Jimusho)

• Handles prefectural taxes, including automobile tax and fixed asset tax.
• Website: Osaka Prefecture Tax Information

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5. Practical Considerations for Living and Working in Osaka

1. Language Barrier:

   • Most tax forms and procedures are in Japanese. Consider hiring a tax consultant or interpreter if you are not fluent in Japanese.
   • The Osaka Regional Taxation Bureau offers limited English support.

2. Tax Consultants:

   • Hiring a Zeirishi (税理士), a licensed tax accountant, can simplify the process, especially for freelancers or business owners.

3. My Number System (マイナンバー):

   • Ensure you have your My Number Card, as it is required for tax filings and other administrative processes.

4. Bank Account:

   • Payments can often be made via bank transfer. Ensure you have a Japanese bank account for convenience.

5. Tax Refunds:

   • If you overpay taxes, you can apply for a refund when filing your final tax return.

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By understanding these tax categories, procedures, and deadlines, you can ensure compliance and make the most of any deductions or exemptions available. If you need further assistance, consider visiting the local tax office or consulting a professional tax advisor in Osaka.