Saturday, March 24, 2012

Japanese Income Taxes

In Japan, income tax is paid annually by individuals on the national, prefectural and municipal levels. The amount is calculated based on the net income of the individual person of the income earned in Japan. Income tax in Japan is based on a self-assessment system (a person determines the tax amount himself or herself by filing a tax return) in combination with a withholding tax system (taxes are subtracted from salaries and wages and submitted by the employer). It is due on March 15th. Thanks to the withholding tax system, most employees in Japan do not need to file a tax return.

Ted filled out the Japanese tax form with the help of someone he works with. The amount of tax he owed was the exact amount that had been withheld by his employer. Except for the form being in Japanese, it was simple and straightforward.

We also have to file our taxes in the US, which isn’t such a simple thing to do from here. We both worked in the US last year and we have income from the rental of our home.  We are still waiting on the 1099 from the rental agent! (If you are considering renting out your home in NC, contact me and let me tell you which company should not be trusted with your home.)


Sun City Stitcher said...

I thought by law they have to send you the 1099 by the end of January! Not sure. I hope it all works out. Love your blog and look into life in Japan.

Pamela said...

I think that is the law - just one of the many reasons we are not happy with the agency who has our home.