Sapporo

๐Ÿ’ฐ

Taxation

Overview of local taxation processes, including income, residency, and consumption taxes in Sapporo.

Sections

1. Overview of Tax Categories in Japan (Applicable in Sapporo)

In Japan, taxes are broadly divided into national taxes and local taxes. As a resident or business owner in Sapporo, you will be subject to both types of taxes.

A. National Taxes

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

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

  2. Corporate Tax (ๆณ•ไบบ็จŽ, Houjinzei)

    • Applicable to businesses and corporations.
    • Standard corporate tax rate: 23.2% for most companies.
    • Small and medium-sized enterprises (SMEs) may qualify for reduced rates on a portion of their income.

  3. Consumption Tax (ๆถˆ่ฒป็จŽ, Shouhizei)

    • Japanโ€™s version of a value-added tax (VAT).
    • Standard rate: 10% (8% for certain food and beverages).
    • Businesses are responsible for collecting and remitting this tax.

  4. Other National Taxes

    • Inheritance Tax (็›ธ็ถš็จŽ, Souzokuzei): Progressive rates from 10% to 55%.
    • Gift Tax (่ดˆไธŽ็จŽ, Zouyozei): Progressive rates from 10% to 55%.
    • Customs Duties: Levied on imported goods.

B. Local Taxes (Specific to Sapporo and Hokkaido Prefecture)

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

    • Paid to the Sapporo City government and Hokkaido Prefecture.
    • Flat rate of 10% of your previous yearโ€™s income (6% to the city, 4% to the prefecture).
    • Includes a per capita levy (around ยฅ5,000โ€“ยฅ6,000 annually).

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

    • Levied on property owners.
    • Standard rate: 1.4% of the assessed value of the property.

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

    • Additional tax for urban development.
    • Rate: 0.3% of the assessed value of the property.

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

    • Applicable to owners of small vehicles and motorcycles.
    • Rates vary depending on the type and size of the vehicle.

2. Tax Filing Procedures in Sapporo

A. Income Tax Filing (็ขบๅฎš็”ณๅ‘Š, Kakutei Shinkoku)

  1. Who Needs to File?

    • Employees: If your employer withholds taxes, you may not need to file unless you have additional income (e.g., freelance work, investments).
    • Self-employed individuals and business owners: Required to file annually.
    • Non-residents: Must file for Japan-sourced income.

  2. When to File?

    • Filing period: February 16 to March 15 of the following year.
    • Late filing may result in penalties.

  3. How to File?

    • Online: Use the National Tax Agencyโ€™s e-Tax system (https://www.e-tax.nta.go.jp/).
    • In-person: Visit the Sapporo Tax Office (ๆœญๅนŒ็จŽๅ‹™็ฝฒ, Sapporo Zeimusho).
    • By mail: Submit your completed tax return form to the Sapporo Tax Office.

  4. Documents Required:

    • Tax return form (available online or at the tax office).
    • Income statements (ๆบๆณ‰ๅพดๅŽ็ฅจ, Gensen Choushuuhyou) from employers.
    • Receipts for deductible expenses (e.g., medical expenses, donations).
    • My Number card (ใƒžใ‚คใƒŠใƒณใƒใƒผใ‚ซใƒผใƒ‰) for identification.

B. Resident Tax Filing

  • Resident tax is calculated based on your previous yearโ€™s income.
  • The Sapporo City government will send you a tax notice in June.
  • If you are self-employed or have additional income, you may need to file separately with the city office.

C. Corporate Tax Filing

  • Corporations must file their tax returns within two months after the end of their fiscal year.
  • Extensions may be granted upon request.

3. Tax Payment Methods

  1. Income Tax:

    • Deducted automatically from salaries (for employees).
    • Self-employed individuals and others can pay via:
      • Bank transfer.
      • Credit card (via the e-Tax system).
      • Convenience stores (using a payment slip).
      • Direct payment at the tax office.

  2. Resident Tax:

    • Paid in four installments (June, August, October, and January).
    • Payment methods:
      • Bank transfer.
      • Automatic deduction from your salary (if arranged by your employer).
      • Payment at convenience stores or city offices.

  3. Corporate Tax:

    • Paid via bank transfer, e-Tax, or at financial institutions.

  4. Consumption Tax:

    • Businesses must remit collected consumption tax to the tax office.

4. Local Considerations in Sapporo

  1. Language Barrier:

    • Most tax forms and resources are in Japanese. Consider hiring a bilingual tax consultant or accountant if you are not fluent in Japanese.

  2. Tax Consultation Services:

    • The Sapporo Tax Office offers consultation services, but they may be limited in English.
    • The Hokkaido International Business Association (HIBA) and other local organizations may provide support for foreign residents.

  3. My Number System:

    • Japanโ€™s national identification system (My Number) is used for tax purposes. Ensure you have your My Number card or notification letter.

  4. Local Tax Office:

    • Sapporo Tax Office (ๆœญๅนŒ็จŽๅ‹™็ฝฒ, Sapporo Zeimusho)
      Address: 1-1-1 Kita 3 Jonishi, Chuo-ku, Sapporo, Hokkaido 060-0003
      Phone: 011-231-4111
      Hours: 8:30 AM to 5:00 PM (Monday to Friday).

  5. Tax Deductions and Credits:

    • Common deductions include:
      • Social insurance premiums.
      • Medical expenses exceeding a certain threshold.
      • Donations to approved organizations (e.g., Furusato Nozei program).

5. Resources for Tax Assistance

  1. National Tax Agency (NTA) Website:

    • Comprehensive information on taxes in Japan: https://www.nta.go.jp/

  2. Sapporo City Office:

    • For resident tax inquiries and payments.
    • Address: 1-1 Kita 1 Jonishi, Chuo-ku, Sapporo, Hokkaido 060-8611.

  3. Tax Professionals:

    • Certified Public Tax Accountants (็จŽ็†ๅฃซ, Zeirishi) can assist with tax filing and planning.
    • Look for English-speaking accountants in Sapporo through expat networks or professional directories.

  4. Expat Communities:

    • Online forums and local groups (e.g., Meetup, Facebook groups) often share advice and recommendations for navigating taxes in Sapporo.

6. Tips for Managing Taxes in Sapporo

  • Stay Organized: Keep all receipts, income statements, and tax-related documents throughout the year.
  • Plan Ahead: Set aside funds for tax payments, especially if you are self-employed or own a business.
  • Seek Professional Help: Tax laws in Japan can be complex, so consulting a tax professional is highly recommended.
  • Understand Deadlines: Mark key dates for filing and payment to avoid penalties.

By following this guide, you should be well-prepared to handle your tax obligations in Sapporo, Japan. Let me know if you need further assistance!