確定申告 (kakutei shinkoku), income tax return, is the process in Japan where individuals and businesses calculate their total income for the year, determine the amount of tax owed, and submit this information to the tax authorities. This process includes reporting all income, claiming deductions, and paying any taxes due. The process begins with the preparation of necessary documents, such as income statements, receipts for deductible expenses, and proof of insurance payments. The main documents needed include the kakutei shinkoku sho (tax return form), which can be downloaded from the National Tax Agency's website, obtained from local tax offices, or generated using accounting software like Freee.jp or Money Forward.
The deadline for submitting a tax return is typically from February 16 to March 15 of the following year. If the due date falls on a weekend or holiday, the deadline is extended to the next business day. For the 2023 tax year, the filing period is from February 16, 2024, to March 15, 2024.
Certain groups are required to file a tax return, including self-employed individuals, freelancers, and business owners. Employees may also need to file if their annual income exceeds 20 million yen, they have additional income from side jobs exceeding 200,000 yen, or if they need to claim specific deductions that were not accounted for during the year-end adjustment (年末調整). Examples of such deductions include medical expenses, charitable donations, and mortgage interest.
The submission can be done in several ways: directly at the tax office, via mail, or electronically using the e-Tax system. Electronic filing through e-Tax has several advantages, such as not needing to submit certain documents physically and being able to file outside regular office hours.
See Also
源泉徴収税 (gensen choshūzei) translates to "withholding tax" in English.
It refers to the tax deducted at the source of income, meaning the payer of the income withholds a portion of the payment and pays it directly to the tax authorities. This system ensures that taxes are collected in advance and helps to prevent tax evasion.
In Japan, withholding tax is commonly applied to various types of income, including salaries, bonuses, interest, dividends, and certain payments to non-residents. Employers, financial institutions, and other entities responsible for making payments must withhold the appropriate amount of tax and remit it to the National Tax Agency.
The rates and specific rules for withholding tax can vary depending on the type of income and the residency status of the recipient. For example, the standard withholding tax rate on salary income for residents is based on progressive tax rates, while non-residents might face a flat rate on certain types of income.
Properly managing withholding tax obligations is crucial for businesses operating in Japan to remain compliant with tax regulations.
控除 (kojo) is a tax deduction in Japan. It refers to the amounts that can be subtracted from an individual's total income to reduce their taxable income. By lowering the taxable income, tax deductions can significantly decrease the amount of tax an individual owes.
Various types of deductions are available, each designed to provide financial relief for specific circumstances. Common deductions includes those for dependents, medical expenses, social insurance premiums, and mortgage interest. For instance, the spousal deduction and dependent deduction help families reduce their tax burden by acknowledging the financial responsibilities of supporting a spouse or dependents.
To claim these deductions, taxpayers must provide the necessary documentation and meet certain eligibility criteria. Properly utilizing deductions are crucial for effective tax planning, as it can lead to substantial tax savings. Understanding and applying the appropriate deductions can help individuals manage their finances better and ensure compliance with tax regulations.
青色申告会 (aoiro shinkoku kai) is a Japanese term that translates to "Blue Return Association" in English. This association supports individuals and small business owners who choose to file their taxes using the blue return system, which is a more detailed and beneficial tax filing method in Japan.
The blue return system (青色申告, aoiro shinkoku) offers various tax advantages, such as higher deductible expenses and special allowances. Members of a 青色申告会 can receive guidance, resources, and assistance in preparing and submitting their blue returns accurately and efficiently. These associations often provide seminars, workshops, and personalized consultations to help members maximize their tax benefits.
Frequently Asked Questions
確定申告 (kakutei shinkoku), income tax return, is the process in Japan where individuals and businesses calculate their total income for the year, determine the amount of tax owed, and submit this information to the tax authorities. This process includes reporting all income, claiming deductions, and paying any taxes due. The process begins with the preparation of necessary documents, such as income statements, receipts for deductible expenses, and proof of insurance payments. The main documents needed include the kakutei shinkoku sho (tax return form), which can be downloaded from the National Tax Agency's website, obtained from local tax offices, or generated using accounting software like Freee.jp or Money Forward.
Income tax return is 確定申告 (kakutei shinkoku) in Japanese.
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