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Left Japan & paying local taxes

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  • Left Japan & paying local taxes

    I recently left Japan and subsequently turned in my ARC at the Immigration gate. I was informed by my previous company that I need to pay for 2012 local tax (entire year) because I was a resident in Tokyo as of Jan. 1, 2012. When I spoke about the issue to my friends who also left the country around the same time that I did, it seems they weren't told by their companies that they need to pay local tax for 2012.

    A few questions that i have -

    - Am I responsible for the local tax for the entire year of 2012 (even though I left the country in April), or for whatever amount up to April only?
    - If I don't pay up, will my previous company be contacted by the ward office and be requested to pay on my behalf? (all my previous local tax amt were withdrawn from my payslips automatically).
    - Given that I don't pay the 2012 local tax, will I have trouble going to Japan as a visitor in the future?
    - Will this affect my application for pension lump-sum withdrawal? I can apply for this immediately after I have left the country, right?

    Any help and insight would be appreciated.

  • #2
    Originally posted by ding1 View Post
    I recently left Japan and subsequently turned in my ARC at the Immigration gate. I was informed by my previous company that I need to pay for 2012 local tax (entire year) because I was a resident in Tokyo as of Jan. 1, 2012. When I spoke about the issue to my friends who also left the country around the same time that I did, it seems they weren't told by their companies that they need to pay local tax for 2012.

    A few questions that i have -

    - Am I responsible for the local tax for the entire year of 2012 (even though I left the country in April), or for whatever amount up to April only?
    - If I don't pay up, will my previous company be contacted by the ward office and be requested to pay on my behalf? (all my previous local tax amt were withdrawn from my payslips automatically).
    - Given that I don't pay the 2012 local tax, will I have trouble going to Japan as a visitor in the future?
    - Will this affect my application for pension lump-sum withdrawal? I can apply for this immediately after I have left the country, right?

    Any help and insight would be appreciated.
    I think you'll find your ward office will charge you up to and including April this year. That's what happened to me when I left Japan some time ago having finished working as an English teacher (I now run my own business and live in Japan for about 6 mths a year and have a Korean wife who was born in Japan but identifies with her own country, culture and people). Remember the ward tax for this year will be based on 2011's income.

    Possibly your company would be contacted. Possibly not. Why don't you take a trip to your ward office and take all the payslips with the deductions shown. It will be instructive to see if your company really was taking out the tax that the ward office calculated. At times employers take out too much.

    I doubt that Immigration will have a list with your name on it when you return to Japan as a visitor or to work. Immigration blacklists are based on more substantial things than ward tax. However, increasingly non payment of ward tax is causing complications for non Japanese including the majority of Immigration offices demanding proof that you have paid your taxes when you renew a visa. Who knows if not paying the ward tax you owe will result in withholding of the pension lump sum refund. The way things are going it could happen.

    I'd suggest you wander down to the ward office asap.
    Last edited by caramellocap; 2012-04-22, 10:36 PM.

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    • #3
      Thanks!! Appreciate the insight. I have already left Japan, so can't make a trip to the ward office. It's good to know that they don't make you pay local tax for the entire year .

      Comment


      • #4
        Originally posted by ding1 View Post
        Thanks!! Appreciate the insight. I have already left Japan, so can't make a trip to the ward office. It's good to know that they don't make you pay local tax for the entire year .
        City tax is calculated and applied retrospectively, so what you owe and pay in 2012 will be the tax due on your 2011 income. So in 2012 you will be expected to pay the entire city tax for 2011 (Jan 1 to Dec 31). That's 10% of your 2011 taxable income.

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        • #5
          Hi, I'm in a similar situation. I left Japan the last day of March and am in Canada now.

          My ward office just sent bills with huge amounts for my 2011 income I suppose, payable in 4 installments until Feb/2013.

          But what happens to the income from January to March 2012? when is that due? Can I be waived of this portion because Canada & Japan have an agreement not to double-tax if you're in one of those countries?

          Thanks for your help.

          Comment


          • #6
            Originally posted by arigato_japan View Post
            Hi, I'm in a similar situation. I left Japan the last day of March and am in Canada now.

            My ward office just sent bills with huge amounts for my 2011 income I suppose, payable in 4 installments until Feb/2013.

            But what happens to the income from January to March 2012? when is that due? Can I be waived of this portion because Canada & Japan have an agreement not to double-tax if you're in one of those countries?

            Thanks for your help.
            Your 2013 bill will be based on your 2012 income. There is no double taxing.

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            • #7
              Originally posted by arigato_japan View Post
              Hi, I'm in a similar situation. I left Japan the last day of March and am in Canada now.

              My ward office just sent bills with huge amounts for my 2011 income I suppose, payable in 4 installments until Feb/2013.

              But what happens to the income from January to March 2012? when is that due? Can I be waived of this portion because Canada & Japan have an agreement not to double-tax if you're in one of those countries?

              Thanks for your help.
              as tax returns are done in feb tax is calculated up to December. the January March portion is added onto the April December portion of 2012.

              This will be levied as city tax in June of 2013. If you are out of the country you can avoid paying it but it doesnt mean you are not liable for it.

              Comment


              • #8
                Originally posted by KansaiBen View Post
                as tax returns are done in feb tax is calculated up to December. the January March portion is added onto the April December portion of 2012.

                This will be levied as city tax in June of 2013. If you are out of the country you can avoid paying it but it doesnt mean you are not liable for it.
                Thanks for playing, but wrong again.

                There will be no local tax assessment on any of the 2012 calendar year income unless the OP is living in Japan as of the end of this year.

                National income tax liability for the 2012 income is still there, however, and in theory the OP should have filed a final income tax return before leaving the country.


                Completely,
                A.

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                • #9
                  Hi, thank you for your answers.

                  I submitted my Kakutei-shinkoku in March and named a representative (proxy) to pay whatever bills come after my departure.

                  So, just to clarify, I understand I'm liable for the January-March 2012 portion, but where will I have to pay it in 2013? I'll be in Canada for the rest of this year and also for most of 2013. I may come for a visit/work but not to live.

                  Does it work like this:
                  Jan-Mar 2012 income is paid in Japan in July 2013,
                  Apr-Dec 2012 income is paid in Canada in 2013 ??


                  Edited June 20:
                  A friend called the ward office about this so I thought of posting the answer:
                  It is not necessary to pay anything for the Jan-Mar 2012 income only if I'm not residing in Japan on January 1st, 2013.
                  I'll have to pay income tax in Canada for my whole income from January to December 2012.
                  Last edited by arigato_japan; 2012-06-21, 05:22 AM. Reason: added relevant info for others

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                  • #10
                    this topic had been covered before i'm pretty sure

                    i got a large bill as well, right about the time i was about to leave

                    so i left without paying

                    and i have been back to visit, no questions asked

                    had my boss told me up front about these silly taxes, i probably would have paid

                    fu-ck it

                    Comment


                    • #11
                      Originally posted by arigato_japan View Post


                      Edited June 20:
                      A friend called the ward office about this so I thought of posting the answer:
                      It is not necessary to pay anything for the Jan-Mar 2012 income only if I'm not residing in Japan on January 1st, 2013.
                      I'll have to pay income tax in Canada for my whole income from January to December 2012.
                      Interesting. Can a PR holder move his residence overseas without losing status? I'm aware that PR stands for "permanent residence" but say my company asked me to work overseas - would I need to register with the local offices that I'm living overseas?

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                      • #12
                        Of tax, pension and alien card

                        Originally posted by jerseykid View Post
                        this topic had been covered before i'm pretty sure

                        i got a large bill as well, right about the time i was about to leave

                        so i left without paying

                        and i have been back to visit, no questions asked

                        had my boss told me up front about these silly taxes, i probably would have paid

                        fu-ck it
                        if i were to leave without clearing my local tax, should i surrender my alien registration card (ARC) at the airport? or rather, should i surrender the ARC if i want to make a claim for lump sum withdrawal from the pension?

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                        • #13
                          Originally posted by KansaiBen View Post
                          as tax returns are done in feb tax is calculated up to December. the January March portion is added onto the April December portion of 2012.

                          This will be levied as city tax in June of 2013. If you are out of the country you can avoid paying it but it doesnt mean you are not liable for it.
                          This guy knows what he's talking about!

                          If you ever have a question about health insurance ask him.

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