Tokyo Living

Interestingly, Tokyo – Japan is one of the places in the world where residents are required to pay residence tax.  Residential tax is paid by not only home owners, but by those who are renting the premises.  The tax rates are not standard and are grouped in two distinctive categories.  These are namely:-

• Special City Tax and

• Tokyo Metropolitan Tax

  

In Tokyo these are generally levied together, and all tenants who intend to stay for over six months are required to make these payments.  Different cities across Japan levy different types of taxes depending on their by-laws.

The tax period usually begins around June-July of each consecutive year.  It is important to understand that not all tenants understand that they pay tax.  Salaried or employed residents usually have their tax deducted by the employers depending on the salary scale and the area of occupation and submitted directly.

It is important to understand that the rate of tax on property ranges from 10% and above of one’s total income.  The tax rates change from year to year.  The Government usually reviews this and sets new standards once the same has been set.  Tax is not only paid by the employed, even the self employed are required by the Japanese law to pay residential taxes.

There are standard requirements that a tax form must be filled, and submitted to the Taxation each year.  This takes place between the months of January and March each year.  If not done or paid at the right time, there are penalties that come with not remitting payment in time as is required by law.

Tax rates are also grouped according to classes and the amount of income.  To be able to have a clear understanding of these groupings, tax here is grouped under the following terms:-

• Permanent Resident

• Non-permanent Resident and finally

• Non Resident

All residents living in Tokyo have an obligation by law to pay residential tax, nationality notwithstanding.   There are a group of people who are exempted from paying these taxes.  This must be proved by the Government before any exemption is done.  There is usually a central place where all the information regarding tax payment is centered.