• Dividends from unlisted companies paid in Japan: – 20 % National tax withheld at source * Final withholding tax, thus cannot be reported on an individual's income tax return ** Dividends from a listed company in Japan is not required to be reported on an individual's income tax return if subject to with holding
Capital Gains for Residents Capital Gains (in general): • Listed on a Japanese stock exchange and sold through Japanese brokerage (Jan. 1, 2009 to Dec. 31, 2011; to be extended til 2013): 10 % (7 % National & 3 % Local) • Shares not listed or listed shares not sold through Japanese brokerage: 20 % (15 % National & 5 % Local) Reimbursement for business trips Actual reimbursement of business expense is non-taxable Imputed income for personal use of company car Personal use of company car is taxable in Japan
Inheritance & gift tax
Offices with a GES practice
• Inheritance tax: 10 % ~ 50 % (maximum rate may increase to 55% per 2011 Tax Reform) • Gift tax: 10 % ~ 50 % (if taxed on calender year basis)
Deloitte Tohmatsu Tax Co. Shin-Tokyo Building 5F 3-3-1 Marunouchi Chiyoda-ku Tokyo 100-8305
Other taxes
+81 (0)3 6213 3800
• Consumption tax: 5 % • Corporate Income Tax: 41 % (expected to be reduced to 36% for fiscal periods beginning on or after 1 April, 2011)
Social security Required if salary is paid through a Japanese entity • Employee contribution: 14.009 % – 14.089 % • Employer contribution: 14.794 % – 14.874 % Due to the constant changes and amendments to tax legislation and revised interpretation of tax law by tax administration Deloitte cannot assume any liability for the content of this pocket tax guide. It shall only serve as a general information and shall not replace the necessary consultation of your Deloitte tax advisor. © 2011 Deloitte & Touche GmbH Wirtschaftsprüfungsgesellschaft Issued 1/2011
Pocket Tax Guide 2011 Japan
J
Personal income tax Filing status Single Filing Status Categories of taxable income • Employment Income • Interest Income • Dividend Income • Capital Gains (sale of shares and real property) • Capital Gains (others) • Rental Income • Business Income • Occasional Income • Miscellaneous Income • Forestry Income • Retirement Income Tax year The tax year corresponds with the calendar year.
Tax Rates 2011 National income tax (for 2011 income): • Residents: Progressive rates from 5 % to 40 % • Non-residents: Flat rate of 20 % Taxable Income – National (disregard fraction under 1000 yen) 0 ~ 1,950,000 1,950,001 ~ 3,300,000 3,300,001 ~ 6,950,000 6,950,001 ~ 9,000,000 9,000,001 ~ 18,000,000 18,000,001 ~
Tax Rate 5 % 10 % 20 % 23 % 33 % 40 %
Local inhabitants tax (for 2011 income): • Flat rate of 10 % Special Expatriate's Tax Regimes Non-permanent residents (non-Japanese nationals who are residents and have not resided or maintained their domicile in Japan for more than five years out of the last ten years) • Employment income related to non-Japanese workdays is not taxed in Japan, unless paid in Japan or remitted into Japan
• Overseas investment income (interest, dividend, capital gains, etc.) is not subject to tax in Japan unless remitted into Japan
General Allowances / Deductions for Residents Employment income exemption: 5 % to 40 % of gross employment income
General filing due dates 2011 National individual income tax return (for 2011 income): • March 15, 2012
Deductions for National tax: • Basic: JPY 380,000 • Spousal: JPY 380,000 ~ JPY 830,000 • Dependent*: JPY 380,000 ~ JPY 630,000
2011 National individual income tax due: • March 15, 2012 (paid by a payment slip) • Mid-April, 2012 (paid by automatic bank transfer)
Deductions for Local tax (for 2012 Local tax assessed on 2011 income): • Basic: JPY 330,000 • Spousal: JPY 330,000 ~ JPY 610,000 • Dependent*: JPY 330,000 ~ JPY 680,000
2011 Provisional National individual income tax due: • July 31, 2011 & November 30, 2011 (1st & 2nd) 2012 Local inhabitants tax (for 2011 income): • July 2, 2012 (lump sum payment) • Alternatively, 4 installment payments (July 2012, Aug. 2012, Oct. 2012, Jan. 2013)
* For ages 16 and over
Interest & Dividends for Residents Interest income (in general): • Interest income paid in Japan: 20 % (15 % National & 5 % Local) withheld at source* Dividend income (in general): • Dividends from listed companies paid in Japan (Jan. 1, 2009 to Dec. 31, 2011; to be extended til 2013)**: – 10 % (7 % National & 3 % Local) withheld at source – Select either consolidated taxation at marginal tax rate or separate taxation at 10 %