The Japan Tax Representative Form + How to Appoint a Tax Agent

A tax representative is a legal entity or an individual that fulfills non-residents’ tax obligations such as filing tax returns, receiving documents from tax authorities, paying taxes, and receiving refunds (還付金 kanpukin).

This article covers who can be your tax rep in Japan, where to find the Japan tax representative form, a popular tax representative service, and your FAQs about this role.

What is a tax representative in Japan?

In Japan, tax representatives are referred to as nouzeikanrinin ( 納税管理人= のうぜいかんりにん ).

The following are some of the responsibilities of a Japan tax representative:

• Filing income tax returns of nonresidents.

• Paying various taxes on behalf of clients.

• Receiving refunds from the government, such as the pension lump sum withdrawal for foreigners who have left Japan.

• Receiving various documents sent from the tax agencies.

But when exactly will you need to take advantage of a tax representative?

Or to put it differently, when will you have legal obligations that require you to set up a tax representative for yourself?

Here are some cases where it is beneficial to have a Japanese tax rep:

• You live outside of Japan but own real estate property in Japan. And you need a tax representative to pay your real estate tax bills for your Japanese property.

• You live outside of Japan but are in the process of purchasing a property in Japan and need to fulfill the required domestic point of contact while transferring property ownership.

• You do not live in Japan, but you have tax obligations such as inheritance tax (相続税), gift tax (贈与税) and fixed asset tax (固定資産税).

• You plan to leave Japan, but you need someone to pay your resident tax bill.

• Because the Tax Office only accepts bank accounts in Japan for pension refunds, you will need to appoint a resident in Japan (your tax representative) with a Japanese bank account to receive your tax refund. 

• You are a foreign corporation with no branches or offices in Japan but want to transfer assets in Japan. There may be cases in which such transaction will be subject to consumption tax (消費税).

The above is not an exhaustive list. However, the more common cases in which foreigners require a Japanese tax representative are the following:

• Paying real estate tax on behalf of a client

• Being a domestic point of contact for real estate property purchases

• Pension withdrawal payment on behalf of a client

• Paying resident tax payment on their income tax return on behalf of a client

Eligibility criteria for becoming a Japan tax representative

When it comes to appointing a tax representative who can pay taxes on your behalf, anyone with a residential address in Japan is generally eligible.

There are no specific qualifications or restrictions, such as being a close relative or having to be a legal entity, so you can choose any individual as your tax representative.

However, if you need more than just document handling and bill payment, and you need assistance with tax return preparation or tax planning for savings, it's advisable to appoint someone with a certified public accountant (CPA) qualification.

Regardless of your choice, it's essential to entrust this role to someone you trust and who is competent and proficient in carrying out these duties.

How to appoint a tax representative in Japan + how to fill out the Japan tax representative form

When appointing a tax representative, you must submit a "納税管理人の届出書 Notification Form of Appointment of Tax Agent" to the tax office responsible for your tax jurisdiction.

Image. Notification Form of Appointment of Tax Agent

However, it's important to note that if the one appointing the tax representative has real estate in Japan and has rental income, the form should be submitted to the tax office in the jurisdiction where that real estate is located.

The notification form for the tax representative should include information about the reason for the appointment.

👉 You can find an example of the form filled out in English here.

👉 The Japanese version of the tax representative form can be found on the National Tax Agency site. Or use this link to directly download the PDF of the Japanese tax rep form.

You should submit this form to the tax office responsible for the taxpayer's tax jurisdiction either on the appointment date or before the departure date from Japan.

If you are currently residing abroad and appointing a tax representative for your Japanese property, you should submit the form to the tax office responsible for the region where your Japanese property is located.

How to use MailMate as your tax representative in Japan

Looking for a tax representative service for your real estate property in Japan?

MailMate offers a tax agent service for real estate owners who have property in Japan but are living abroad.

The service includes the following features:

• Tax representative for annual real estate tax payments

• Domestic point of contact for authorities (required by law)

• Bill pay support for property tax payments

• Tax notifications with English summaries

• A virtual mailbox to receive the mail that arrives at your Japanese property

• Manage important property documents and notifications in one place

Other services MailMate offers include utility and Internet setup of your Japanese property.

Founded in 2019, MailMate has simplified property ownership for foreigners living abroad and is an increasingly popular option recommended by users as well as well-known industry figures.

Additionally, if you use MailMate's tax representative service for property owners, MailMate will take care of filing the tax representative form with the relevant tax office on your behalf.

Fees for hiring a tax representative in Japan

If you have a friend or family member who is familiar with tax-related paperwork, you may not have to pay at all.

But if you decide to hire a tax representative who is a certified public accountant (CPA), it is common to establish a consulting agreement where you pay a monthly fee and an additional fee only during busy months like the tax filing season.

The monthly fee typically depends on the complexity of the administrative work required. For routine tasks, it can be around 5,000 yen and usually doesn't exceed 10,000 yen.

However, for tasks that involve a significant amount of work, such as inheritance tax procedures, the standard consulting agreement may not cover all the work required.

In such cases, you may need to pay additional fees beyond the monthly retainer to compensate for the extra workload.

If you decide to use MailMate's tax representative service, plans start from 4800 yen per month.

What are the penalties for non-compliance with Japan's tax laws?

The following are penalties for non-compliance with Japan's tax laws.

Additional tax for failure to file (無申告加算税)

This penalty occurs if you fail to submit the required tax returns by the deadline. It can range from 5% to 20% of the amount you should have paid.

Additional tax for understatement (過少申告加算税)

If you intentionally or inadvertently report a lower income than what you should have, you may be subject to this penalty. It can amount to 5% to 15% of the additional tax owed.

Additional tax for fraud (重加算税)

If fraudulent activities or tax evasion are discovered, you may face this penalty, which can range from 35% to 40% of the amount you should have paid.

Delinquent tax (延滞税)

Failing to make tax payments by the due date can result in this penalty, which can be between 2.5% and 14.6% of the unpaid amount.

Frequently asked questions

What does a tax representative do?

The scope of work of a tax representative is strictly tax-related. So paying utility bills and receiving pension refunds is technically not their job, although they very well could do it for you.

How to change or remove a tax representative?

If there's a need to dismiss the previously appointed tax representative, such as when returning and becoming a resident again, a "納税管理人の解任届出書 Notification of Dismissal of Tax Agent" must be submitted to the tax office in charge of the resident's tax jurisdiction.

Can anyone become a tax representative? 

When it comes to appointing a tax representative who can pay taxes on your behalf, anyone with a residential address in Japan is generally eligible. However, if you need more than document handling and want assistance with tax return preparation or tax planning for savings, it's advisable to appoint someone with a certified public accountant (CPA) qualification. For example, MailMate's tax representative service can handle paying property taxes, but cannot file tax returns on behalf of clients.

In closing

A tax representative for Japan is someone who will carry out a variety of tax duties, such as the pension lump sum withdrawal for those who leave Japan.

Technically, anyone can be a tax representative—so long as the tax representative form has been filed with the taxpayer's presiding tax office. 

If you're looking for a tax representative for your property in Japan, consider MailMate's fluently bilingual tax representative service!