There are many people who have heard the word “tax return”, but do you know what kind of things you should declare or at what times? If the company you are working for is doing year-end adjustments, in most cases, there is no need to file a tax return. However, when you have a side job and income of more than 200,000 yen a year or when you are receiving salaries from 2 or more places, there may be a need to file a tax return.

In addition, it may be possible to receive a refund (medical expenses deduction) by filing a tax return, such as when medical expenses exceed to 100,000 yen a year.

In this video, we will introduce the importance of the tax return and especially the points that foreigners should be careful about.

What is tax return?

The tax return is a procedure for calculating the income tax (income tax and reconstruction special income tax) and determining how much taxes you should pay. Not all taxes are automatically withdrawn. In some cases, there may be a difference between the amount of tax already paid, such as withholding taxes, and the tax amount to be paid.

So, the tax return form together with required documents such as various certificates, and collected income and expenses incurred in the year from January 1 to December 31 must be declared from February 16 to March 15 (will change to Monday in the case the date falls on Saturdays and Sundays).  In doing so, the amount of tax to be paid has been finalized, and if you paid too much, the tax will be refunded and returned to you.

Main cases where a tax return is required

1. If the company you’re working for have not done the year-end adjustments for taxes.
2. If the income exceeds the limit
3. If the person receives employment income from overseas employer, which is not covered by withholding tax, etc.
4. If the secondary income such as side job or part-time job exceeds 200,000 yen.
5. If a severance pay has been paid by a foreign company and if there is no income withheld, etc.

Documents required for tax return

1. Tax return form, download from Website of National Taxation Bureau or You can get it at the tax office.
2. Documents that can prove income such as withholding slip
3. My number card or My number notification card + Identification card (residence card, driver’s license etc)
4. Various certification documents required for deduction
5. Seal or sign, etc

Subject to deduction

There are many things to be deductible in tax return. Although there are various conditions, for example, if the total of the medical expenses (including the one who filed and dependent family) for one year exceeds 100,000 yen, the excess amount is set as “medical expenses deduction”, it can be deducted from the income amount.

In addition, if a foreign national who works in Japan sends money to support a family living abroad, prepare “relatives documents” and “remittance related documents” to prove the support and the relationship. By doing so, you can receive ‘dependent deduction’. However, if the documents are written in a foreign language, translation into Japanese is required.

In addition, for income generated outside of Japan, although tax payment has been made in foreign countries, those taxable in Japan also have a “Foreign Tax Deduction” that allows you to deduct a fixed amount of taxes from the taxes to be paid in Japan ※Click here for more details (Japanese only)

Besides these, there are various deductions such as “deduction for persons with disabilities” and “social insurance fee deduction”. If you would like to learn more, please consult a tax office or a tax accountant, or consult the National Tax Agency site.

Click here for more details (Japanese only)

Where can I fill the tax return?

You can fill the declaration at the declaration venue. Click here for the tax return filing venue for 2018 (only in Japanese)

At the venue, you can get information on the tax return, consult, and have them tell you how to fill in the forms.

Some people think “I don’t know much about taxes” or “filing taxes seems difficult”, but in order to pay the proper taxes without excess or deficiency, once you know you must file for income tax return and make deduction, please check and consult the experts. If you need to fill the tax return, prepare the necessary documents before the given period.

List of tax offices in each region in Mie prefecture

https://www.nta.go.jp/about/organization/nagoya/location/mie.htm

*Advance reservation is required for consultation at the tax office except for certain period such as  tax return filing period.

*The tax office consultation is available only in Japanese. If you are a foreign resident who can not speak Japanese, please bring someone who can interpret for you.