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🇯🇵 Japan

Japanese Tax Return (確定申告)

Annual Income Tax Declaration

Hard ~60 min TaxJapanIncomeKakutei Shinkoku

/ What is this form?

Kakutei Shinkoku (確定申告) is Japan's annual individual income tax return process, administered by the National Tax Agency (NTA). The filing period runs from February 16 to March 15 each year (for the prior calendar year's income). Japan operates primarily on a pay-as-you-earn (PAYE) system called Gensen Chōshū (源泉徴収) — employers withhold income tax from salaries throughout the year and perform a year-end tax adjustment (年末調整, Nenmatsuchōsei) to reconcile withholding with actual tax liability. Most salaried employees therefore do not need to file a tax return.

However, self-employed workers, freelancers, those with rental or investment income, high earners (income above ¥20 million), and those who want to claim certain deductions (medical expenses, housing loan credit in the first year, large charitable donations) must or should file Kakutei Shinkoku. Foreign residents working in Japan who have income from their home country or foreign investments must also include this in their Japanese tax return.

Japan has invested significantly in its e-Tax system, which allows online filing with a My Number card. Physical submission at local tax offices is also accepted. The return uses Form A (simplified, for salary and pension income) or Form B (comprehensive, for all income types including business income).

/ Who needs this form?

  • Self-employed individuals, sole proprietors, and freelancers
  • Salaried employees with salary income exceeding ¥20 million per year
  • Anyone with significant rental income, investment income, or foreign income
  • Employees who worked for two or more employers during the year
  • Anyone wanting to claim deductions not covered by the employer's year-end adjustment: large medical expenses, first-year home loan deduction, or large Furusato Nōzei donations
  • Foreign nationals permanently leaving Japan (departure tax return)

/ What you need before you start

Withholding tax slips (源泉徴収票) from all employers
My Number card or notification document with Individual Number
Bank account information for refund deposit
Medical expense receipts (if claiming medical deduction)
Life insurance and earthquake insurance certificates
Documents for any real estate income, investment income, or foreign income
Previous year's tax return (for continuity checks)

/ Step-by-step guide

1 Determine If You Must File
You must file a Kakutei Shinkoku if: you are self-employed or a freelancer; your annual income exceeds ¥20 million; you have income from multiple employers; you have rental, investment, or foreign income; you want to claim deductions not available through year-end adjustment (life insurance, medical expenses, home loan deduction first year, charitable donations); or you are leaving Japan permanently and need to file a departure return.
2 Choose Form A or Form B
Form A (申告書A) is simpler — for taxpayers with salary income, pension income, and miscellaneous income only, with no losses to carry forward. Form B (申告書B) handles all income types including business, real estate, timber, and capital gains. Most salaried employees use Form A if they file at all; self-employed use Form B.
3 Collect Income and Deduction Documents
Gather: withholding tax slips (源泉徴収票) from all employers; receipts for medical expenses exceeding ¥100,000 (or 5% of income if less); life insurance premium certificates; earthquake insurance certificate; donation receipts (ふるさと納税 / hometown tax); home loan balance certificate (if claiming housing loan deduction); bank statements for investment income.
4 File via e-Tax or at the Tax Office
The most convenient method is e-Tax (国税電子申告・納税システム) — Japan's online filing system. Registration requires a My Number card with IC chip. Alternatively, submit paper forms at your local tax office (税務署) from mid-January to March 15. Tax offices set up special Kakutei Shinkoku counters February 16–March 15.
5 Pay or Receive a Refund
If you owe additional tax, pay by March 15 (bank transfer, convenience store, credit card via e-Tax, or Furusato tax payment). If you overpaid, a refund is deposited to your registered bank account within approximately 1-2 months. File early for faster refunds.

/ Key fields explained

Field What to enter Common mistake
所得の種類 (Income Types) Categorize income: Employment income (給与所得), Business income (事業所得), Real estate income (不動産所得), Capital gains (譲渡所得), Miscellaneous income (雑所得), etc. Each category has its own calculation rules. Foreign residents categorizing foreign salary income as non-taxable — Japan taxes worldwide income for tax residents. Foreign salary must be reported.
医療費控除 (Medical Expense Deduction) Total qualifying medical expenses paid during the year. The deduction is: (Total medical expenses - insurance reimbursements) - ¥100,000 (or 5% of total income if lower). Including over-the-counter vitamins, health foods, or cosmetic procedures — only medically necessary expenses are deductible. However, prescription medications and medically recommended supplements may qualify.
源泉徴収額 (Withholding Tax Already Paid) Total income tax withheld by employers as shown on your 源泉徴収票 (withholding slip). This is your prepaid tax credit against your total liability. Forgetting to include withholding from side income (speaking fees, freelance payments) — any payment with withholding tax withheld generates a 源泉徴収票 that must be included.

/ Common mistakes to avoid

Missing the March 15 deadline — unlike many countries, Japan has limited options for extension. Late filing results in penalties and interest. File early or request consultation at the tax office.
Not reporting foreign income — Japan taxes worldwide income for tax residents. Foreign bank interest, dividends, and salary earned abroad must all be reported.
Using the wrong form — Form A cannot be used for business income, real estate income, or capital gains. Using the wrong form results in the return being rejected.
Forgetting to register for e-Tax before the season — the My Number card IC chip registration and e-Tax account setup takes time. Start in January for a March 15 deadline.

/ Frequently asked questions

Do salaried employees in Japan need to file a tax return?

Usually not — employers handle year-end adjustment (年末調整) for most salaried employees. However, you must file if your annual salary exceeds ¥20 million, you have multiple employers, or you want to claim certain deductions (large medical expenses, first-year housing loan deduction).

What is Furusato Nōzei and how does it affect my taxes?

Furusato Nōzei (hometown tax donations) allows you to donate to local governments and receive a tax deduction plus goods (typically food, crafts). Up to certain income-based limits, the donation reduces your local residence tax by the full donation amount minus ¥2,000. Over 10 million people participate annually.

I am leaving Japan — do I need to file a tax return?

Yes, if you had Japanese income in the year of departure. You file a 'departure return' (出国前確定申告) before leaving, or appoint a tax representative (納税管理人) to file on your behalf after departure.

Does Japan have tax treaties with my home country?

Japan has tax treaties with over 80 countries. Treaties typically prevent double taxation on income — you can claim a foreign tax credit in Japan for taxes paid abroad. Consult a tax accountant (税理士) for country-specific treaty details.