Both me and my wife had 40,000 yen removed from our cheque for taxes. We’re on a fixed yearly salary, and they already take quite a hefty amount each month. They also took close to the same amount in June for the work year end. This is my first completed year in Japan, but my salary is static so why do we owe more? Tax season for me back home, they’d be giving me back that much at this point. Not taking it. It’s frustrating.
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If it is the first full year and if you worked a little last year they will make and adjustment accordingly. My salary went up by three times compared to last year so I am basically not getting a pay check for this month and next to cover the income tax difference.
It’s called the year-end adjustment. Every month, they have been withholding an amount for your taxes, but that amount is an estimate. At the year-end adjustment, this amount is compared against your actual tax liability. If they withheld too much, you would get money back. If they didn’t withhold enough, you’ll have to pay a bit more.
Edit: this is actually a good thing for you. People seem to think it’s a great thing to get a big tax refund, but all that means is that you’ve been giving the government an involuntary interest-free loan until they pay you back the difference.
The current change would be related to the Year End Tax Adjustment (YETA). Though having a higher deduction is odd. I would need to see the whole years payments/taxes to know why they needed additional this month.
It could be caused by various items.
Did you work the total calendar year? Did you have any bonuses? Did you change positions/jobs? etc.