Type of taxes for individuals in Japan

Types of Taxes Overview
Income Tax(所得税、住民税) Paid annually by individuals on the national, prefectural and municipal levels. 
Known as resident tax on the prefectural and municipal level.
Amount is calculated based in the net taxable income of the individual person.
Enterprise Tax(事業税) Prefectural tax paid annually / installments
For self-employed individuals engaged in business activities
Property Tax(固定資産税) Municipal tax paid in annually / installments
Individuals who owns land, housing, and depreciable assets etc.
Consumption Tax(消費税) Paid by consumer when purchasing good and services.
Current rate is 10 %
Food, drinks (excl. Alcohol) and newspaper etc. are 8%
Vehicle related Taxes(自動車税) Prefectural tax paid annually

 

Non-Resident,  Non-Permanent resident, and Permanent resident in Japan

For tax purpose, people living in Japan is classified into three categories.This categorization is not related to Visa types.

Category Definition
Non Resident(非居住者) Less than 1 year of stay
No primary base in Japan (Not having a Domicile)
Resident
(居住者)
Non Permanent Resident
(非永住者)
No Japanese nationality
Having a domicile or residence in Japan for five years or less within the period of last ten years in Japan
Permanent Resident
(永住者)
(Japanese nationality)
Having a domicile or residence continuously for one year or more in Japan
(Non Japanese nationality)
Having a domicile or residence in Japan for more than five years  within the period of last ten years in Japan

 

Scope of taxable income for individuals

Type of residence Income other than foreign- sourced income Foreign-sourced Income
Income paid IN Japan Income paid OUTSIDE Japan Income paid IN Japan Income paid OUTSIDE Japan
Remitted to Japan Other
Non Resident Taxable Taxable No Taxable No Taxable No Taxable
Non Permanent Resident Taxable Taxable Taxable Taxable No Taxable
Permanent Resident Taxable Taxable Taxable Taxable Taxable