Job Discussion Forums

[mrjohndub]

So, I'm about to be leaving my job...it's the end of my contract and I'm taking another one in a different country. I just found out about the residential tax. I'm not surprised that I owe one, but I had no prior knowledge of it until now. It's my understanding that it's approximately 4-5% of gross earnings for the year, and that I will need to pay for the whole year in a lump sum. This will be taken out of my final salary by my employer.

I'm concerned for my budgeting, as this was unexpected and is a pretty sizable chunk of change. I won't be broke by any means, but I'm anxious about the amount. I live in the suburbs, and I'm told that's a factor that will keep it on the lower end of the spectrum relative to city residents.

Does anyone have any useful information or experiences having to do with ways to minimize the amount due? Are there any ways to claim deductions in the amount taxed or otherwise? Are there any sort of loopholes to look into or ways to claim (partial) refunds? I by no means resent being charged, and will dutifully pay, but as in my own country I would prefer to pay the minimum amount that can be justified...

...Thoughts? Thank you

[Sweetsee]

How long have you been here? Because I believe you are exempt for the first year. That and the responsibility is yours, unless you have given them permission to pay it, and if they are paying it then it is deducted monthly.
What I would do is insist that they not deduct it and you tell them that you will pay yourself. What you do after that is up to you but it is my guess that most people here for the short term or who have no plans of establishing credit here blow it off.
At the same time, have you filed for a tax return? Because know one will tell you but there is a good chance that you got money coming to you. Of course if you file then the tax people and the hoken people will be after you.

[whatthefunk]

your employeer shouldnt have the right to deduct it unless you are living in a company apartment. the residential tax is the responsibility of the renter of the apartment, not your employeer. i acidentally forgot to pay mine.

[mrjohndub]

[azarashi sushi]

I'm no expert on the matter but it does seem unusual that your employer is taking the money out of your pay rather than you paying it yourself. My experience has always been that I get sent a bill for the tax with a booklet enclosed that allows me to pay in four installments spread out over the year. As far as minimizing the cost goes, tell your employer that you want to pay yourself, get sent the booklet, pay the first installment and then leave. If, as you say, you live in the suburbs, it won't be too much.

[ndorfn]

never heard of the employer deducting it, or then again, I think I might have been asked by one employer, and I opted to pay myself.

you could tell them you'll pay it yourself and then ...?

an expensive final month in japan eh?

[mrjohndub]

I just sent an email to my head office superior requesting that the company stay out of the process, aside from providing me with necessary stubs and information about payment options.

What I'm wondering now is...how to back this request up with legal precedent or information available online outlining the regulations that would support my position.

Does anyone know of how to find this information? Thanks!

[Big John Stud]

mrjohndub wrote:

I just sent an email to my head office superior requesting that the company stay out of the process, aside from providing me with necessary stubs and information about payment options. What I'm wondering now is...how to back this request up with legal precedent or information available online outlining the regulations that would support my position. Does anyone know of how to find this information? Thanks!

I think your best bet is to call the labour board office in the area you live. Most likely they are in the closest city.

[Seeker of truth]

Just as the government pretends to offer me better services for my tax dollars, I pretend to pay the tax.

[bornslippy1981]

[Sweetsee]

Sorry Slippy but you will have to research that, I may be confusing residence tax with income tax. But I do know that if you plan on staying here for a long time than it is necessary to pay, in the event that one day you may want to purchase property.
I will also add that while I am not advocating it, most foreigners here for the short term blow it off. You will recieve notices in your post box which will become a darker shade of red as time goes on but other than that I have never heard of anyone being thrown in jail. Forthermore, there is no link between immigration and the city tax offices at this time.

[JimDunlop2]

Resident's tax is NOT the same as income tax. Income tax, (by law) is deducted from your paycheque every month... Resident's tax usually is not. That is also not written in stone, as most Japanese workers have their residents' tax deducted automatically as well.

If/when you receive a bill from the city in your mailbox, the first thing to determine is: are you leaving the country soon? If you are... Ignore it.

Next, if you are staying for the next year, you need to pay it. You have the choice of paying the bulk sum at once, or over four installments. This is probably much more reasonable. You can arrange to pay in one of two ways: get the money directly debited from your bank account, OR bring the payment stubs into city hall in person with your cash in hand. I do the latter myself, but am considering switching to pre-authorized debit.

[PAULH]

[Sweetsee]

There we go, two of our kindest and most helpful members to the rescue. Good work guys!
How about the silliness thread Jim?

Enjoy,
s

[PAULH]