Sorry for asking this kind of question. I arrived in Japan in June 2022.
All my taxes are handled by the company. As far as I know, the resident tax is withheld from the salary each month and the company pays it later.
I plan to leave japan on July 2023.
My question is :
1) Is the first year (2022) free of resident tax? if so, how can I get money back from the company that has deducted it?
2) This coming year 2023, I am thinking of paying the resident tax myself. But as I will leave Japan before Dec 2023, will I be liable to pay the resident tax as I am not a resident of the ward (Shinjuku) as of 1st Jan 2024?
3) what are some other things that I should beware of before leaving?
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Thank you!
2 comments
1. Yes first year is free. You should not be deducted at all from your company. Check your payslip again, maybe it’s for income tax or social insurance. I repeat, you should not be deducted at all.
2. You will still be paying resident tax for your income in 2022, and you will probably will have to pay the rest when you leave on July 2023. You will not be paying resident tax for your 2023 income, since like you said you’re not resident in Jan 1st, 2024.
3. Take care to pay the rest of your residence tax when you leave. Don’t leave them behind. I’ve seen my share of foreigners that doesn’t want to pay. And it’s a pain in the ass to deal as their tax representative. Please just pay them.
If your taxable income June 2022 to December 2022 is high enough to incur resident tax then you will have to pay that because you will be a resident of Japan as of January 1st 2023.
The 2022 resident tax billing will start June 2023.
If you are doing “special collection” via your employer You can then see the information on question 3 on page 2 of this document: https://www.soumu.go.jp/main_content/000679118.pdf
If you’re not doing special collection then you will get your bills sent to you.
Because you plan to leave Japan July 2023 then you will be able to earn income January 2023 to July 2023 resident tax free. This is because you won’t be a resident as of January 1st 2024.