Understanding Individual Income Tax in Japan

### Taxpayer Categories - **Residents**: Individuals living in Japan and subject to tax on global income. - **Non-Permanent Residents**: Non-Japanese citizens who reside in Japan but only pay tax on Japan-sourced income. - **Non-Residents**: People who stay in Japan for less than a year, only taxed on Japan-sourced income. ### Filing a Tax Return - **Who Needs to File**: People with more than one employer or who have additional income. - **Eligible for Refunds**: Individuals who might get a tax refund if they overpaid income tax. - **When to File**: Tax returns should be filed by mid-March, with payments due by the end of March. - **Leaving Japan**: Ensure tax obligations are settled before departure. ### Major Tax Deductions - **Family Support**: Deductions when supporting family economically. - **Marital Status**: Benefits if married. - **Insurance Payments**: Deductions for social and life insurance payments. - **Medical Expenses**: Relief for substantial medical costs. ### Withholding and Year-End Adjustment Employers withhold income tax from salaries, balancing it at the year-end to ensure correct amounts are paid. --- Source: Immigration Services Agency of Japan "Life and Work Guidebook" 第7版 https://www.moj.go.jp/isa/support/portal/guidebook_all.html This article was reorganized by ＳＩＡデジタルテクノロジー株式会社 based on the above source.