These Are the Year-End Tax Adjustments You Can Apply For When Working in Japan

Do you need a tax deduction based on insurance premiums, dependents, or your spouse?

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As long as you’re earning an income, you’re essentially required to file an income tax return. In Japan, there are two processes for that. One is the
Kakutei Shinkoku (????), which is usually done by freelancers and self-employed people, and the other is Nenmatsu Chousei (????), which translates to the year-end tax adjustment usually filed by employers. 

In this article, we share with you the basics of
Nenmatsu Chousei, which usually happens sometime in November. This is the period when your employer starts distributing the documents to be filled up by you. By accomplishing these documents, your paid taxes will be reviewed based on certain factors such as your dependents, other paid insurances, house loans, etc.

This can either result in receiving a refund or paying the balance. This will also be the basis for how much income tax you’ll be paying the following year. 

There will be several forms for you to fill up. Simply put, you’ll only have to provide your name, address, ‘My Number’ card number, and your
inkan or personal seal. Whether a form is applicable to you or not, you’ll still need to submit it with the information that you can provide to prove that you have acknowledged the form (even if the rest of the form is left blank). 

Now, what are the qualifications for adjusting your taxes? These are the basic forms handed out by companies: 

??????????????? (Kyuyo Shotokusha No Haigusha Kojoto Shinkokusho)
or the application for exemption for the spouse of the income earner.

This English form is available

This form is filled by those who have spouses whose annual income does not exceed ¥1,230,000. By submitting this, you may be granted an exemption for spouses. If your spouse is a non-resident of Japan, you’ll be asked to provide supporting documents to prove your relationship and show that you are supporting them financially. 

?????????????? (Kyuyo Shotokusha No Hoken Kojo Shinkokusho)
or the application for a deduction based on insurance premiums of the income earner.

This English form is available

This form is where your paid real estate loans or other insurance premiums you’re paying for can be filed and considered for tax deductions. You must be able to provide a certificate to prove your contribution, which is usually readily issued by insurance companies. 

?????????????????? (Kyuyo Shotokusha no Fuyo Kojoto (Ido) Shinkokusho)
or the application for changes on exemption of dependents.


This English form is available

If you have dependents other than your spouse, you need to accomplish and submit this form so you can get exemptions as well. Your dependents don’t necessarily need to be a resident of Japan. However, you’ll be asked to provide documents that will prove your relationship and show that you are supporting them financially.

The whole process is really simple since your employer unburdens you of the painstaking process of filing taxation documents on your own. It’s best to follow their deadline so you won’t have to do all of this by yourself!

All the forms we shared here are in English for your reference as most companies distribute forms in the Japanese language.

National Tax Agency

 (10 July 2019)

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