When you are required to file a final tax return.

投稿者: | 2020-05-08
Mt.Fuji and Kawaguchi Lake

Q. I am a foreign worker in Japan. How should I do the precedures of final tax return?

Withholding at Source and Year-end Adjustment

In case that you are an employee, you are not required to file a final tax return basically.

Because the estimated income tax is deducted from the monthly salary by employers, and the total amount of income tax payabe is balanced by the year-end adjustment.

The year-end adjustment is carried out by employers when you receive your saraly in December. Some companies carry out the adjustment through the first salaly payment in subsequent year, January.

When you are required to file a final tax return.

Main three cases as bellow

・Employment incomeexceeds 20,000,000JPY during the year.(Before deducting employment deduction)

・Incomes other than employment income and retirement income such as land rent, manuscript fee exceed 200,000JPY

・You work two or more sources of employment income and the income other than main income exceeds 200,000JPY.

You are not required, but you may as well file a tax return.

In case that you are entitled to partial or total refund of the withholding tax as follow.

・Medical expenses deduction, Donation deduction
I posted an article about Medical expenses deduction in detail as below.
Deduction for medical expenses of income tax for the year when you enter Japan.

・Special credit, when you purchase your residence with mortgage

・Credit for foreign taxes
In order to avoid international double taxation on income.

Not employee, but self-employed need to file a final tax return.
Here is basic and typical case.Please consult with tax offices or accountants in detail.

<Related article>
How to Calculate Income Tax in Japan


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