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Tax in Japan

Your personal tax guide for Japan

The content in this tax guide is provided by EY.

Going to or leaving Japan

Local tax information for Japan.

Local information Details

Tax authority

Ministry of Finance

Website

www.mof.go.jp

Tax year

1 January to 31 December

Tax return due date

15 March

Is joint filing possible

No

Are tax return extensions possible

No

Local tax information for Japan.

Local information

Tax authority

Details

Ministry of Finance

Local information

Website

Details

www.mof.go.jp

Local information

Tax year

Details

1 January to 31 December

Local information

Tax return due date

Details

15 March

Local information

Is joint filing possible

Details

No

Local information

Are tax return extensions possible

Details

No

2020 national income tax rates

2020 national income tax rates.

Taxable income band ¥ National income tax rates

1,950,001 to 3,300,000

10%

3,300,001 to 6,950,000

20%

6,950,001 to 9,000,000

23%

9,000,001 to 18,000,000

33%

18,000,001 to 40,000,000

40%

40,000,001 + 45%

2020 national income tax rates.

Taxable income band ¥

1,950,001 to 3,300,000

National income tax rates

10%

Taxable income band ¥

3,300,001 to 6,950,000

National income tax rates

20%

Taxable income band ¥

6,950,001 to 9,000,000

National income tax rates

23%

Taxable income band ¥

9,000,001 to 18,000,000

National income tax rates

33%

Taxable income band ¥

18,000,001 to 40,000,000

National income tax rates

40%

Taxable income band ¥ 40,000,001 +
National income tax rates 45%

Individual income taxes consist of national income tax and local inhabitant tax.

Normally, a 20% withholding tax is levied on non-residents, with no deductions available; however, depending on the type of income, tax may be levied at progressive rates through self-assessment.

Dividends and salaries paid by Japanese companies, interest income, annuities and prizes are subject to a 20% withholding tax if paid to non-residents.

A special surtax for reconstruction assistance with respect to the Tohoku earthquake disaster is imposed from 2013 to 2037. The surtax rate of 2.1% is applied to the amount of national income tax. As a result, the effective tax rate for the highest bracket was 45.945% for 2020.

Local inhabitant tax consists of prefectural tax (a flat rate of 4% plus ¥1,500 of per capita levy) and municipal tax (a flat rate of 6% plus ¥3,500 of per capita levy). Local inhabitant tax is imposed on individuals who are registered at a municipality as of 1 January.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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