京都市国際交流協会

Like all Japanese residents, foreign residents must also pay tax. Tax is classified into two major groups, National Tax and Local Tax (Prefectural Tax, and City, Town and Village Tax)

•	National Tax is what you pay to the national government in the form of income tax, liquor tax, and consumer tax (including local consumer tax) etc.
•	Local Tax is what you must pay to the prefecture, city, town or village in the form of city resident tax, prefectural resident tax, and light-vehicle tax etc.

Income Tax (National Tax)

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

What is Year-end Adjustment? (Full-time worker)
A certain amount of tax is deducted from your monthly income.
The total amount deducted from your income and the actual total amount of tax you are required to pay may not necessarily be equal. In which case the difference or amount adjusted is called “Year-end Adjustment” (Nenmatsu-Chosei) Your employer will calculate the year-end adjustment.

Filing an Income Tax Return (Part-time worker etc.)

This system requires you to calculate the amount of tax you must pay based on your total annual earnings (from Jan.1 through Dec.31). You must file your income tax return with the taxation office in your area between Feb.16 and Mar.15 of the following year. You will be required to pay tax at the office where you lodged your form.

Consumer Tax (including local tax)

This is a 5% tax imposed on the cost of buying goods and services. When the cost is shown including tax it is called “tax inclusive” (uchi-zei) and when not shown it is called “tax exclusive” (soto-zei) and tax will be added on.

Residence Tax (Prefectural-residence, City-residence tax)

This is a local tax based on your income in the preceding year. It must be paid at the local taxation office of the area you are living in on Jan.1

Taxes Imposed on Purchasing a Vehicle

This includes: Vehicle tax, Vehicle acquisition tax, Vehicle weight tax and Consumer tax.
Vehicle means car, truck and bus etc.
Annual Taxes
•Vehicle tax (imposed on vehicle owners on April 1 every year)
•Vehicle Inspection Taxes
•Vehicle weight tax (imposed at time of inspection)

Light-Vehicle Tax (city, town or village tax)

Imposed annually (Apr.1) on light-vehicle owners. Light-vehicle means light car, motorcycle and 2-wheel mini-vehicle etc.

Fixed Property Tax (including city planning tax)

Imposed on land and/or real estate owners.

Public Pension Schemes
There are three public pension schemes: Employees’ Pension Insurance, the National Pension and the Mutual Aid Pension (only for public service personnel). All public pension schemes are administered by the national government. Pensions are granted in the following cases: •Social security for the elderly (old-age pension) •Social security for the sick and handicapped (handicapped persons’ pension) •Social security for the bereaved family (pension for the bereaved)
*	All persons over the age of 20 living in Japan must enroll in one of the pension insurance schemes.

Employees’ Pension Insurance Scheme

All company and factory employees, including foreign employees, must enroll in this pension scheme. All employees under the age of 20 must also enroll in this scheme. In principle, all persons working in Japan are required to pay a pension premium. At the age of 60, so long as you have been enrolled in the Employees’ Pension Insurance Scheme for over 25 years, you will be eligible to receive a pension.
Your employer will arrange enrollment.

National Pension Scheme

This pension scheme is for all persons ineligible to enroll in the Employees’ Pension Insurance Scheme. For example, those working in the farming and fishing industries, independent enterprises or studying. Persons between the ages of 20 and 59 are eligible to enroll. At the age of 65, so long as you have been enrolled in the National Pension Scheme for over 25 years, you will be eligible to receive a pension.
Registered foreign residents can also enroll in this scheme. If leaving Japan (within 25 years of enrolling) it is possible to withdraw from the pension scheme and receive a refund or Lump-sum Withdrawal Payment.
(· See Lump-sum Withdrawal Payment)
Persons wanting to enroll in the National Pension Scheme must do so by themselves at the Insurance and Pension Section of the Ward or Branch Office where they live.

Lump-sum Withdrawal Payment

All non-Japanese persons leaving Japan within 25 years of enrolling in a pension scheme are eligible to apply for the Lump-sum Withdrawal Payment.

(1) Lump-sum Withdrawal Payments are granted in principle on request to persons who meet all of the following conditions

•Persons who do not possess Japanese citizenship
•Persons who do not have a place of residence in Japan (have already left Japan)
•Persons who paid the National Pension premium or the Employees’ Pension Insurance premium for 6 months or more
•Persons who have never qualified for pension benefits
•Persons who file a claim within 2 years from the day of withdrawing from any pension scheme

(2)The Lump-sum Withdrawal Payment can be calculated using the following table (as of April 1, 2001)

(unit: month)	Enrolled period Lump-sum Withdrawal Payment
(unit: month)	Employees’ Pension Insurance	National Pension
6–12	A net level monthly premium×0.5	¥41,580
12–18	A net level monthly premium×1.0	¥83,160
18–24	A net level monthly premium×1.5	¥124,740
24–30	A net level monthly premium×2.0	¥166,320
30–36	A net level monthly premium×2.5	¥207,900
36–	A net level monthly premium×3.0	¥249,480

•	20% income tax is imposed on the Lump-sum Withdrawal Payment for the Employees’ Pension Insurance. (When you submit a final income tax return for the year, if there has been a total tax overpayment, you will be refunded the excess) · See p.201 Filing an Income Tax Return
•	The Lump-sum Withdrawal Payment will be paid in your home country’s local currency. A remittance charge from Japan is not required, however, a handling fee when depositing in an overseas bank may be charged.

(3) Necessary documents to file for the Lump-Sum Withdrawal Payment

•	Claim form (available from the Social Insurance Agency or the National Pension Section of a municipal office)
•	Pension Book (if you don’t have one, necessary details must be filled in on the claim form)
•	A photocopy of your passport
•	A document verifying your bank details in your home country (bank name, branch, address, and your account number it must be in your name)

Send the above documents to the following address:
The Social Insurance Agency Office
03-3334-2111
5-24 Takaido-Nishi 3-Chome, Suginami-Ku, Tokyo 168-8505

For inquiries about the pension system
•	Social Insurance Agency: Local Office
•	Insurance and Pension Section of Municipal Office, Ward Office or Branch (for the National Pension Scheme.)
•	Kyoto City Pension Consultation Service Center 075-213-2000 1st Floor of Shijo SET Building, Yanagi-no-banba, Shijo-sagaru, Shimogyo-ku, Kyoto City 600-8006

Persons who are deemed eligible to receive nursing care services and are either over 65 years of age or are between the age of 40 and 64, are enrolled in a medical insurance will receive care appropriate to their condition.

Ward•Branch Office, Welfare•health Section

What is Labor Insurance?

Labor Insurance refers to the following two systems of insurance:
Worker’s Accident Compensation Insurance Scheme for job-related accidents (commonly known as “Labor Accident Insurance” Rosai-hoken) and Employment Insurance (Koyo-hoken)
These systems provide the worker (employee) with financial assistance in case of absence from work due to a work-related accident, or unemployment. The employer must subscribe to the labor insurance system and pay the premium when he/she employs one or more employees. Both systems are administered by the national government.

What is Worker’s Accident Compensation Insurance?

Worker’s Compensation Insurance provides the worker (employee) or the bereaved family with the following compensations, in case of illness, injury or death incurred while working or commuting to work.

1)	Medical Treatment Compensation Benefits(Ryoyohoshokyufu) · Provided for receipt of medical care (hospitalization or a doctors visit) for illness, injury or death incurred while working or commuting to work.
2)	Temporary Disability Compensation Benefit(Kyugyohoshokyufu) · Provided for temporary absence from work due to a work-related injury or illness. 80 percent of the average wage will be provided from the fourth day of the worker’s absence from work.
3)	Permanent Disability Compensation Benefit(Shogaihoshoukyufu) · In the case of prolonged physical disability due to a work-related injury or illness. Disability is ranked according to the degree of seriousness from Levels 1 (the most serious condition) to 14 (the least serious) •Levels 1–7>Permanent Disability Compensation pension will be provided. •Levels 8–14>Permanent Disability Compensation lump sum payment will be provided.
4)	Funeral Expenses(Sosairyo) · In case of work-related death, funeral expenses will be provided to the person who presides over the ceremony. The amount provided is 305,000 yen plus the equivalent of 30 days of the average daily wage.
5)	Injury/sickness Compensation Pension(Shobyohoshonenkin) · In case of not having fully recovered from injury or illness 18 months from the day treatment commenced, a pension will be provided according to the level of disability.
6)	Disability Care Compensation Benefit(Kaigohoshokyufu) · Provided to a person who is receiving disability compensation benefits or an injury/sickness compensation pension equivalent to level 1 or 2, and is currently receiving disability care. The employer will pay the total amount of the premium.

What is Employment Insurance?

Employment Insurance provides an allowance to the unemployed worker for general living expenses while seeking stable employment.

The main unemployment allowances are:
1)	Basic Allowance(Kihonteate) · In case of unemployment, to enable the unemployed to seek stable employment. According to the worker’s age and years of service, 50–80 percent (%) of his/her daily wage will be provided for 90 to 300 days.
2)	Technical Skill Learning Allowance(Ginoshutokuteate) · Allowance provided for the learning of technical skills by the unemployed. To undertake training, permission (a public occupation training order) must be received from the public employment offices’ general manager.
3)	Lodging Allowance(Kishukuteate) · Provided when it is necessary for the unemployed to live independent of their supporting family to undertake job training.
4)	Injury/sickness Allowance(Shobyoteate) · Provided instead of a basic allowance when the unemployed is unable to take a job due to injury or illness after having applied for work through the public employment office.
5)	Job Regaining Allowance(Saishushokuteate) · Provided when the unemployed finds stable employment at an early stage of receiving the Basic Allowance. Note that certain requirements must be met.
6)	Education and Traning Allowance Provided to increase labor skills, under certain conditions 80 percent of the cost of eduation and training can be provided. (max. 300,000 yen)
7)	Childcare Leave Basic Allowance(Ikujikyugyokihonkyufukin) · Provided to enable the employee to take leave from work in order to take care of a child aged under 12 months.
8)	Nursing Leave Allowance Provided to enable an employee take leave from work in order to care for one’s family. The employer and employee jointly pay the premium in proportion to the employee’s wage. Generally the employee pays the sum of 4/1000 (in case of the forestry-fishery industry, brewery and construction industries its 5/1000) of the wage.

For information and advice on labor insurance

In general, application procedures for labor insurance

<For Labor Accident Insurance>
•Kyoto Labor Standards Bureau (075-241-321) •Kyoto Kami Labor Standards Guidance Office(075-462-5111) •Kyoto Shimo Labor Standards Guidance Office(075-561-4921) •Kyoto Minami Labor Standards Guidance Office(075-601-8321) •Kyoto Labor Accident Pension Consultation Service(075-211-7287)

<For Employment Insurance>
•Kyoto Nishijin Public Employment Office(Hello Work Kyoto Nishijin)075-451-8609 •Kyoto Shichijo Public Employment Office(Hello Work Kyoto Shichijo)075-341-8609 •Fushimi Public Employment Office(Hello Work Fushimi) 075-602-8609

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