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Prefectural / City Tax confusion

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  • Prefectural / City Tax confusion

    I have an issue with prefectural citizens tax, and was wondering if anyone else who knows more about it, could weigh in on this.

    Last year, I received my first big Japan citizens tax after having lived in Japan for 3 years now (at least, this was what my canadian friend told me it was for ). It was a biggie, around 160,000 yen and I coudlnt afford to pay it all at once, so opted for the 2 monthly installment method.
    Anyhow, I finally ended up paying it a couple months ago and had since moved to a new prefecture to start a new job. About a month ago, I updated my new address at the local city office.
    Yesterday, I come home to find a 170,000 yen citizens tax bill from my current prefectures office.
    I couldnt believe it... Surely this is a mistake ?? I have only just finished paying my 3 yearly mega tax a couple of months back !

    Im planning to call them up and let them know its a mistake.
    I still have my receipts and reference number from the previously paid bill. I just dont get why this happened....

  • #2
    Originally posted by gstar0z View Post
    I have an issue with prefectural citizens tax, and was wondering if anyone else who knows more about it, could weigh in on this.

    Last year, I received my first big Japan citizens tax after having lived in Japan for 3 years now (at least, this was what my canadian friend told me it was for ). It was a biggie, around 160,000 yen and I coudlnt afford to pay it all at once, so opted for the 2 monthly installment method.
    Anyhow, I finally ended up paying it a couple months ago and had since moved to a new prefecture to start a new job. About a month ago, I updated my new address at the local city office.
    Yesterday, I come home to find a 170,000 yen citizens tax bill from my current prefectures office.
    I couldnt believe it... Surely this is a mistake ?? I have only just finished paying my 3 yearly mega tax a couple of months back !

    Im planning to call them up and let them know its a mistake.
    I still have my receipts and reference number from the previously paid bill. I just dont get why this happened....
    Actually, they send them every year.

    Comment


    • #3
      Originally posted by iago View Post
      Actually, they send them every year.
      Are you serious ? So every year after the third, you get a 160,000 yen bill ?
      Ive never heard of this being a yearly thing from anyone else before...... Maybe Im just out of the loop.

      What happens if you are unemployed, have a low salary or simply dont have the spare cash to hand them such a fee every year ?

      Comment


      • #4
        Originally posted by gstar0z View Post
        Are you serious ? So every year after the third, you get a 160,000 yen bill ?
        Ive never heard of this being a yearly thing from anyone else before...... Maybe Im just out of the loop.

        What happens if you are unemployed, have a low salary or simply dont have the spare cash to hand them such a fee every year ?
        Do I look like I'm joking?

        It's basically 10% of your taxable income from the previous year.

        Comment


        • #5
          Poll tax in Japan is basically a form of income tax. Instead of deducting it from your salary, as would be the case in the U.K., you get sent a f*k off great bill every year. The money gets sent directly to local govt., cutting out the middle-man. The percentage was increased from 5% to 10% about 5 years ago, and boy did I have a shock when my poll tax doubled on the year before.

          Any yes, those on low incomes get royally shafted, but at least Japan can still boast it has 'low income tax'.

          Comment


          • #6
            City/prefectural tax is based on the previous year's income, so you don't have to pay it your first year in Japan (no income). Or at least you didn't when I came, they may have introduced a standard amount for the first year somehow. Anyways, you somehow lucked out and didn't get billed for another year or two after that. But, the bills do come every year, and that number you got sounds fairly standard for a single person in one of the bigger cities.

            Comment


            • #7
              Originally posted by gstar0z View Post
              I have an issue with prefectural citizens tax, and was wondering if anyone else who knows more about it, could weigh in on this.

              Last year, I received my first big Japan citizens tax after having lived in Japan for 3 years now (at least, this was what my canadian friend told me it was for ). It was a biggie, around 160,000 yen and I coudlnt afford to pay it all at once, so opted for the 2 monthly installment method.
              Anyhow, I finally ended up paying it a couple months ago and had since moved to a new prefecture to start a new job. About a month ago, I updated my new address at the local city office.
              Yesterday, I come home to find a 170,000 yen citizens tax bill from my current prefectures office.
              I couldnt believe it... Surely this is a mistake ?? I have only just finished paying my 3 yearly mega tax a couple of months back !

              Im planning to call them up and let them know its a mistake.
              I still have my receipts and reference number from the previously paid bill. I just dont get why this happened....

              I may be mistaken, but it seems you changed your residence to a new prefecture in the middle of the year. Your new prefecture wants to be paid. You will get your money back from the old prefecture, but you should probably follow up on that.

              I did a similar thing with my health insurance premiums. I went to a new prefecture and the office at the old prefecture paid me in cash when I went for a visit.

              By the way, if you "move" to a new prefecture at the end of the year and just before you leave the country, the old prefecture will pay your premiums back. Cheating the system? Definitely. A problem if you plan on coming back to Japan? Probably. Use with caution.

              Comment


              • #8
                Originally posted by hml View Post
                I may be mistaken, but it seems you changed your residence to a new prefecture in the middle of the year. Your new prefecture wants to be paid. You will get your money back from the old prefecture, but you should probably follow up on that.

                I did a similar thing with my health insurance premiums. I went to a new prefecture and the office at the old prefecture paid me in cash when I went for a visit.

                By the way, if you "move" to a new prefecture at the end of the year and just before you leave the country, the old prefecture will pay your premiums back. Cheating the system? Definitely. A problem if you plan on coming back to Japan? Probably. Use with caution.

                Thanks for clarifying what the law is regarding this. It was never explained to me by anyone before, so I didnt fully understand how it worked.

                The tax I was referring to was the income tax. I dont think it was the national health insurance, as Ive never signed up to it before (always had private).
                Is there a usual time that they send out those income tax bills ?
                I recall getting one around August last year in the previous prefecture, and now getting one in June in the new place.

                Comment


                • #9
                  Your income tax should be taken out at source. The bill you have just received is for resident's tax and if you are a part-time worker that is not taken out at source but sent to your home separately to pay in four installments over the course of the next year, even though you are actually paying for the previous year. It is always sent out at this time of year - I got mine last week also.

                  Comment


                  • #10
                    170,000 yen is cheap. Mine is more than double that.

                    Comment


                    • #11
                      Originally posted by Hijinx View Post
                      170,000 yen is cheap. Mine is more than double that.
                      I use my astounding powers of intuition to deduce that you have more than twice the taxable income OP does...
                      Last edited by iago; 2011-06-18, 10:37 AM.

                      Comment


                      • #12
                        Originally posted by Hijinx View Post
                        170,000 yen is cheap. Mine is more than double that.
                        Yep - the first one I received after changing from full-time to part time was almost 500,000 yen ! I wasn't expecting it at all because until that point it had always been taken out of my salary every month. At first I thought there must have been some kind of mistake but no - calculated on the previous year's earnings - so although my income had dropped my tax didn't drop in kind until the following year. Fortunately I had received pretty good severance pay and hadn't spent it so I paid the tax bill all in one go and made sure I put money aside each month in order to pay the tax bill I would inevitably get next time. Unpleasant lesson learned.

                        Comment


                        • #13
                          Originally posted by iago View Post
                          I use my astounding powers of intuition to deduce that you have more than twice the taxable income OP does...
                          Does it work that way?

                          Comment


                          • #14
                            No. Higher tax brackets pay a higher percentage. Up to 30% I believe off the top of my head.

                            Comment


                            • #15
                              Originally posted by Effected After View Post
                              No. Higher tax brackets pay a higher percentage. Up to 30% I believe off the top of my head.
                              Really? For resident's tax?

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