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Easy Living in Kyoto

III Necessary Information for Daily Life

5.Taxation and Insurance

5-1 Main Types of Tax

Like all Japanese, foreign residents must pay tax.

Tax is classified into two major groups, National Tax and Local Tax (Prefectural Tax, and City, Town and Village Tax).


National Tax:Income Tax, Liquor Tax, Consumption Tax (Including local consumption tax), etc.
Local Tax : Residence Tax (Municipal and Prefectural), Light-Vehicle Tax,


Income Tax (National)


This tax is imposed on personal income. The amount of income tax you must pay is determined by applying a tax rate to the amount remaining after allowable deductions have applied to your yearly income. If you are employed, your company will draw a certain amount of tax from your monthly salary and pay it for you.


Consumption Tax (Including local consumption tax)

There is a 5 % tax imposed on all goods and services you pay for. Prices including consumption tax are marked “内税” (uchizei) and prices not including consumption tax which has to be paid separately are marked ”外税” (sotozei).


Residence Tax (Municipal and Prefectural Tax)

This is a local tax based on your previous year’s income, imposed by your place of residence on January 1.


Taxes on automobile purchases

The term “automobile” refers to all passenger cars, trucks, buses, etc. Automobile tax, automobile acquisition tax, motor vehicle weight tax and consumer tax are all imposed. Automobile tax is imposed on car owner on April 1 every year. The automobile weight tax is imposed at the time of car inspection.


Light Vehicle Tax (Municipal Tax)

Light Vehicle Tax is imposed on car owner on April 1 every year. A light vehicle is any light-weight car, motorized bicycle, or two-wheeled compact vehicle.


Property Tax (Including City Planning Tax)

A municipal tax levied on any land or house you own.


◆ What is the year-end adjustment? (To the people working at a company)

A certain amount of tax is deducted from your monthly income. The total amount of tax you are required to pay is not always equal to the amount withheld by your employer. In such a case, the difference has to be adjusted, and this adjustment is called an “Year-end Adjustment” (Nenmatsu-Chosei). Your employer will calculate and handle the year-end adjustment for you.


◆ Filing an Income Tax Return (For part-time workers, etc.)

This system (Kakutei-Shinkoku) requires you to calculate the amount of tax you must pay based on your total annual earnings (from January 1 through December 31). You must file your income tax return to the tax office in your area between February 16 and March 15 of the following year. You will be required to pay tax if it is necessary at the office where you filed your return. Income tax return forms are distributed at local tax offices. (English forms are also available) You can also download forms from the National Tax Agency homepage. http://www.nta.go.jp/

http://www.nta.go.jp

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5-2 Main Types of Insurance

◆Social Insurance System

The social insurance system is an insurance system for all workers in this country and has five types of it including medical, pension, labor, unemployment and nursing care insurances. Foreign workers living in Japan also have to have at least one or more of these insurances according to your status of residence (visa).


■People working in Japanese companies

If you work more than 30 hours a week at a company joining the social insurance system, you have to have the insurance.

①Medical Insurance (Kenko Hoken)

When you start working at a company, you will receive a card (Kenko Hoken Sho) listing your name and birthday. Inform the company in case of illness, injury, childbirth, or death immediately. When you visit a hospital for treatment, usually you pay 30% of the medical cost incurred. The insurance premium is automatically deducted from your salary.

②Pension Insurance (Kosei Nenkin Hoken)

When you join a company, submit your pension book to the company for the insurance. (If you do not have a pension book, have a new one made.) Inform the company immediately when you become a senior citizen, disabled or dead (in this case your family should inform). The insurance premium is automatically deducted from your salary.

③Nursing care Insurance

People between 40 and 64 years old have to have this insurance. When you become 65 years or older and when it becomes necessary for you to receive nursing care (assistance for daily activities including taking a bath, eating and elimination when you become bedridden) or support (for household duties, dressing), you are eligible to receive the service. You pay 10% of the service charge you received. The insurance fee is deducted together with the medical insurance premium.

④ Labor Insurance

Workers who have been injured or have become sick at work or while commuting to work receive benefits such as medical treatment, time off of work and disability compensation. In case of death, the compensation is provided to the families. Inform the company immediately. The insurance premium is fully paid by the company. All working people including foreign workers are eligible to the insurance.

Labor Standards Inspection Office with jurisdiction over your place of work

⑤Unemployment Insurance

Unemployment insurance provides support to the unemployed when they have left work or are fired for general living expenses while they are seeking employment. Your company takes necessary procedures for you when you are scheduled to work over 20 hours a week for over a certain period of time. Your proportion of the premium is deducted from your salary while you are employed, and together with the company’s proportion of the premium, the total amount is paid to the insurance system by the company.

To receive unemployment benefits, you must be healthy and show that you are actively seeking re-employment. As a general rule, you must have been insured for a certain period before you have become unemployed. You receive the benefit from Hello Work and the amount depends on the salary you received while you were employed and the length of employment. In addition, the time you start receiving the benefit and the length you receive it vary depending on whether you left the company for your convenience or you were fired. Beware when you leave your company.

Local Public Employment Office


■ People who do not have Social Insurance at company

You have to have National health insurance, pension insurance and nursing care insurance (if you are between 40 and 64 years old) yourself.

 For details p46 2-2 National Health Insurance, p52 2-3 National Pension


* If you are a spouse of a company employee joining the company Social Insurance System and has a yearly income not exceeding ¥1,300,000, contact the company to be certified as a dependent. When you are certified as a depending spouse, you do not need to pay the insurance premiums (medical insurance, pension insurance).


IV-1. Government Offices

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