Application Acceptance Period: generally from mid-February to March 15 each year
February and March mark tax season in Japan, when individuals who are required to file a tax return submit a kakutei shinkoku (確定申告).
Not all residents automatically receive a tax return form; forms are sent mainly to those who are expected to file, and many people now file online using the e-Tax system.
The two main types of tax are shotokuzei (所得税) (income tax) and juminzei (住民税) (residence tax).
Income tax is calculated based on income earned during the previous calendar year, from January 1 to December 31. Residence tax is generally calculated by local governments based on the previous year’s income and is billed in the following fiscal year.
Company employees usually have their income reported to the tax office by their employer, and for those whose only income is salary, filing a tax return is often not required due to nenmatsu chosei (年末調整).
However, individuals who are self-employed, freelance workers, those with multiple sources of income, or those who earned significant income outside of salary may be required to file a return. People who purchased a home with a mortgage, wish to claim deductions, or need to correct withholding may also choose to file.
Filing a tax return may result in a refund for those who overpaid tax. Common examples include individuals who changed jobs, experienced periods of unemployment, incurred high medical expenses, made charitable donations, or suffered losses due to accidents or disasters.
Self-employed individuals may benefit from filing a aoiro shinkoku (青色申告), which allows certain deductions, provided prior approval has been obtained from the tax office.
Tax returns must be submitted by March 15. Late submissions may result in penalties.
Some tax offices and local authorities provide guidance in English, and consultation services are available in major cities, including support offered by the Tokyo Bureau of Taxation .
