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Japanese tax accountant will provide you with useful tax information.
Following Questions & Answers will be helpful for you to file a tax return in Japan and you will be surprised at the low tax accountant fee.
Questions & Answers
Income Tax
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1. To claim a tax refund
2. To offset capital losses against other income
3. Private business in Japan
4. To file a tax return from overseas
5. To claim a tax refund after the departure from Japan
No.1
To claim a tax refund
I entered Japan and worked for 11 months last year. I am employed on a two-year contract.
I paid more than ￥100,000 for my dental treatment and remitted some money to my family living in my home country. The employer told me that I might be able to get tax refund by filing my income tax return. I would like to know how to do it.
✍ Answer
You are regarded as a Japanese resident because you have your home ( or domicile ) in Japan. Your resident status is a non- permanent resident because you did not live more than 5 years in the past 10 years. Non- permanent residents are taxed on Japanese source income and foreign source income remitted to Japan or paid in Japan.
The taxation of your salary may be completed by withholding and "Year-end Adjustment" ( 年末調整；Nen-matsu Chousei ) through your employer. If your tax calculation cannot be completed by the employer for some reason, you are supposed to file your income tax return by yourself to complete it. Medical expense deduction can not be settled in the Year-end Adjustment and if you fail to write your dependent name in the form "Application for Exemption for Dependents of Employment Income Earner" ( 扶養控除等申請書；Fuyou-koujo tou no Shinseisho ) handed to the employer, you need to write the fact to apply for the exemption on your return.
Your employer issues a slip to certify the tax withheld from your annual salary at the end of the year or the beginning of the next year. You are to add the information of the medical expenses and your dependents to the information recorded in the slip and complete your tax return. You will have to attach some evidence to prove the exemption for dependents.
It may be too hard for you to file your return by yourself. If you visit a local tax office nearby and ask tax officers to help you, they will be kind to assist you to complete your income tax return. You may be asked to make a reservation for a visit to the tax office due to COVID-19 epidemic.
If you successfully complete your return by a personal computer prepared in the tax office, you will get your tax refund in a month. You may be asked to fill the form "Confirmation Table of the Period of Resident Status" ( 住所又は居所を有していた期間の確認票；Jyuusho matawa Kyosho o Yuushite-ita Kikan no Kakunin-hyou ) before you start to file your return.
If you would like me to file your income tax return in behalf of you, I will accept it at the fee which is shown in "Tax Accountant Fee". Please let me know the details by mail, I will give you some advice and inform you of roughly estimated fee for the service.
We can talk on the telephone if you speak slowly.
2021.1.24
Tax accountant Yoshitsugu Kobayashi
Tax Accountant Fee
Return to Menu
Tax accountant Self Introduction
No.2
To offset capital losses against other income
I have been employed in Japan for several years and invested my savings in securities and rental real estate.
I suffered capital losses from the sale of securities last year. My other income was salary, rent and dividends. I hope to offset the capital losses against my other income.
I do not know the tax regulations of Japan on this matter. Let me know how to do it.
✍ Answer
If your capital losses resulted from dispositions of listed stocks or other specified public offered securities through domestic securities companies in Japan, the losses can be offset against gains from other dispositions of the same kind of securities or dividends from those securities and the excess losses can be carried forward to the succeeding 3 years on condition that you consecutively file your income tax return and list the losses. In this way, you can have the refund of the tax withheld at dispositions of securities or payment of the dividends .
Instead of offsetting that type of dividends against capital losses, you may choose to include the dividends in the "Aggregate Taxation Income" ( refer to [1] below ) and the dividends may be eligible for dividend tax credits which are available for dividends from the domestic corporations.
Capital gains and losses resulted from the sales of securities or real estate are separately taxed from the aggregate taxation income. Though dividends are generally taxed as the aggregate taxation income, only the dividends paid from listed stocks or other specified public offered securities may be selected to be joined to the group of capital gains or losses from the same kind of securities.
Your rental income is basically calculated under the generally accepted accounting principles. The advantageous reporting system which is named "Blue Filing" ( 青色申告; Aoiro Shinkoku ) is available by submitting the form applying for the system to the tax office within 2 months from the start of your rental activity or by March 15 of the year to which you want to start to apply it when you started your business in the previous years. The system obliges you to keep a journal, general ledger and other books for proper bookkeeping, and allows you a special deduction of ￥100,000 or ￥550,000 ( refer to the next case 3(2)) from your rental income. If your rental income was more than ￥200,000 or your salary exceeded ￥20 million last year, you are responsible to file your tax return.
When your overall tax liability turns out to be less than your withholding tax after you correctly compute your tax, you will be able to have a refund of the difference. Your rent and salary or other ordinary income are grouped in the income named [1] "Aggregate Taxation Income ( 総合課税所得 ; Sougou Kazei Shotoku )" which is added together and taxed at progressive rates. If you incurred a loss from the lease, you can offset the rental deficit against your salary, excluding the part of the deficit caused by the interest expense incurred to buy a plot of land (not a building) for the lease.
After you finish calculating all your income, you are to consider deductions and tax credits. The details about deductions and tax credits are written in "Income Tax Guide" published by National Tax Agency which is available through the internet.
You may find it too hard for you to file your income tax return. If you would like me to file your income tax return in behalf of you, I will accept it at the fee which is shown in "Tax Accountant Fee". If you let me know the details by mail, I will give you some advice and inform you of roughly estimated fee for the service.
We can talk on the telephone if you speak slowly.
(NOTE)
Tax on several kinds of income such as salary, other reward, interest and dividends is withheld by their payers. Though the taxation on interest income is completed by the withholding in Japan, tax withheld from other income generally can be refunded if the withholding tax turns out to be excessive.
You need to file your income tax return to have the excessive tax refunded. If you lived in Japan for 5 years or less in the past 10 years in Japan, you are classified as a non- permanent resident. Non- permanent residents are taxed on Japanese source income and foreign source income remitted to Japan or paid in Japan. Income tax is withheld from your monthly salary and the taxation on your income may be completed by the withholding and the "Year-end Tax Adjustment" ( 年末調整；Nen-matsu Chousei ). The withholding tax on salary income is adjusted with December's salary to compute each employee's yearly exact amount owed. You have to file your income tax return when your income except for your salary was more than ￥200,000 or when your salary exceeded ￥20 million.
2021.1.24
Tax accountant Yoshitsugu Kobayashi
Tax Accountant Fee
Return to Menu
Tax accountant Self Introduction
No. 3
Private business in Japan
I came to Japan with my family and opened
a restaurant last year. I worked with my wife,
a regular employee and some part-time workers.
I do not know the procedures of tax matters.
I need advices in taking necessary tax procedure steps and filing my income tax return.
✍ Answer
You are regarded as a resident as you have your home (or domicile) in Japan and you are classified as a non- permanent resident now. For a non- permanent resident, Japanese source income and foreign source income remitted to Japan or paid in Japan are taxed.
A person who starts a self-employed business is supposed to send the following reports to the tax office in charge of his/her district.
(1) "Notification of opening/closing of private business" ( 個人事業の開廃業等届出書 ; Kojin-jigyou no Kaihaigyou tou Todokede-sho )
You have to send the form within 2 months after the fact. You should do it now if you have not done it.
(2) "Income tax blue filing approval application" ( 所得税の青色申告承認申請書 ; Shotokuzei no Aoiro Shinkoku Shounin Shinsei-sho )
When you choose Blue Filing system, you have to send the form by March 15 of the year for which you want the approval, or within 2 months after the business opening if you want the approval from the opening year. You are eligible for the Blue Filing if you keep a journal, general ledger and other books for proper bookkeeping. You will have an advantage of deducting ￥100,000 or ￥550,000 as a special Blue Filing deduction from your business income. You are eligible for the ￥550,000 deduction if the following additional accounting requirements are met.
① Double-entry bookkeeping
② Not cash-basis accounting
➂ Attaching the balance sheet and income statement to your return
Furthermore, if you electronically file your return, ￥100,000 will be added to the ￥550,000 deduction and the total deduction will be ￥650,000.
(3) "Notification form regarding salary for blue business full-time employees" ( 青色事業専従者給与に関する届出書 ; Aoiro Jigyou Senjyuusha-kyuuyo ni Kansuru Todokede-sho )
You can deduct your wife's salary as an expense if you fill out the form and send it by March 15 of the year for which you want to include the salary in the expense, or within 2 months after the business opening in order to include the expense from the opening year. Property rights or income cannot be clearly distinguished between the family members who live together. The system allows you to separate the income for your wife and deduct the amount as a salary expense from your income and then your wife's salary is taxed separately. The system may give you an advantage by dividing your business income between you and your wife and mitigating the progressive taxation.
(4) "Notification of inventory valuation method / depreciation method of depreciable assets of income tax" ( 所得税の棚卸資産の評価方法・減価償却資産の償却方法の届出書 ; Shotokuzei no Tanaoroshi-shisan no Hyouka-houhou / Genkashoukyaku-shisan no Shoukyaku-houhou no Todokede-sho )
This may be attached to your return for the year to which you apply it because its due date to notify is the same as that of the return of the year. As to the inventory valuation, any methods in generally accepted accounting principles are available. Unless you notify your method, the final purchase cost method has to be used. As to the depreciation method, the straight-line method is compulsory for buildings. The declining balance method or straight-line method is available for most depreciable assets. Unless you notify the method you adopt, straight-line method has to be used.
(5) "Notification of establishment of salary payment office, etc." ( 給与支払事務所の開設届出書 ; Kyuuyo Shiharai-jimusho no Kaisetsu Todokede-sho )
This form is used in connection with the withholding on salary payments. Deadline of its notification is 1 month after opening your business. You have to withhold income tax from salaries at their payment and pay the withholding tax to the tax office.
(6) "Application for approval of special withholding tax due date" ( 源泉所得税の納期の特例の承認に関する申請書 ; Gensen-shotokuzei no Nouki no Tokurei no Shounin ni Kansuru Shinsei-sho )
Generally you are supposed to pay monthly withholding tax by the 10th of the next month. You may pay the added amount of 6 months (Jan. ~ Jun and Jul. ~Dec.) at one time (by the 10th of July and by the 20th of January) by applying for this approval which is almost automatically given if you apply for. This special withholding tax payment starts from the next month of your application.
(7) "Consumption tax simplified taxation system selection notification form" ( 消費税簡易課税制度選択届出書 ; Shouhizei Kan-i-kazei Seido Sentaku Todokede-sho )
If your sales of the year before last or the first half year's sales of the previous year exceeded ￥10,000,000, you have to file your consumption tax return by April 15 of the next year. If your sales of the year before last are ￥50,000,000 or less, you are eligible to apply for the simplified taxation system selection. The consumption tax that an entrepreneur incurs is the difference between the tax included in his/her sales and the tax included in his/her purchases. In the simplified system, you may regard the fixed percent of the consumption tax included in your sales as the purchase consumption tax for the sales and deduct the computed purchase tax from the sales tax. The fixed percent of the purchases against the sales is legally provided for each category of business. This system allows you to calculate easily the tax you owe. Your restaurant is classified in the 4th type category in which 60 % of sales is regarded as purchases. You have to send the form by March 15 of the year to which you want to apply it.
After opening your business, you are to keep a journal and other books for proper bookkeeping. In addition to that, you may have to follow the employment regulations under which the withholding of employees' social insurance premiums and income tax from their monthly salary is a monthly business routine. At the end of a year, all accounts on your books are closed and your income statement and balance sheet for the year are created and your business income is calculated. If you have any other income besides the business, you are to include it in your return and subtract income deductions and tax credits, computing your income tax. The details on deductions and tax credits and other points to note are written in the "Income Tax Guide" published by National Tax Agency which is available through the internet.
You may find it too hard for you to take the necessary steps to file your income tax return. If you would like me to advise you about tax matters and file your income tax return in behalf of you, I will accept it at the fee which is shown in "Tax Accountant Fee". The fee for computing your business income varies with the degree to which you have prepared for filing and the contents and volume of your business. If you let me know the details by mail, I will give you some advice and inform you of roughly estimated fee for the service.
We can talk on the telephone if you speak slowly.
2021.1.24
Tax accountant Yoshitsugu Kobayashi
Tax Accountant Fee
Return to Menu
Tax accountant Self Introduction
No. 4
To file a tax return from overseas
I do not live in Japan. I bought a rental apartment in Japan for an investment purpose and sold it last year due to my compelling circumstances.
I suffered losses from the lease and disposition but income taxes were withheld at the transactions.
I would like to claim the tax refund. Let me know how to do it.
✍ Answer
As you do not have your home (or domicile) in Japan, you are a nonresident for tax purposes.
Before you look into your Japanese tax matters, you had better refer to the provisions of the tax treaty between your country and Japan if the treaty exists. An income tax treaty provides each nations' authority of taxation so that double taxation may not occur. If there is no treaty, your tax matters are subject to Japanese income tax laws.
When a nonresident receives proceeds from the lease and sale of real estate in Japan, the payers have to withhold 20.42% income tax from the payments of its rent and purchase price, except when the sale price is ￥100 million or less and the purchaser will use the estate as his/her own home. Therefore, you will be able to claim the tax refund by filing your income tax return, showing the adequate amount of income and tax, after taking various deductions such as interest, advertising and other costs. If you suffered a loss from the lease and had a gain from the sale and totally suffered a loss, you may not fully be able to get refund because you cannot offset rental or ordinary losses against capital gains from the disposition of real estates.
You may find it too hard for you to calculate capital gains or losses or rental income and file your income tax return. If you would like me to file your income tax return in behalf of you, I will accept it at the fee which is shown in "Tax Accountant Fee". The fee for calculating your rental income varies with the degree to which you have prepared for filing and its contents and volume. Please let me know the details by mail, I will give you some advice and inform you of roughly estimated fee for the service.
We can talk on the telephone if you speak slowly.
2021.1.24
Tax accountant Yoshitsugu Kobayashi
Tax Accountant Fee
Return to Menu
Tax accountant Self Introduction
No. 5
To claim a tax refund after the departure from Japan
Last year, I moved to US in June to spend my remaining years and sold my home in Japan where I had lived for more than 20 years.
My income of the year was salaries, pensions, interest, dividends, capital gain resulted from selling my home and others. The income was all subject to withholding tax and I suspect that a part of my last year's income will be taxed doubly due to my dual-status for tax purposes.
How can I adjust the taxes and get refund of the overpaid tax?
✍ Answer
For tax purposes, you were a Japanese resident till last June and since then a non- resident. The tax treaty between US and Japan provides that pensions are taxed only in the country where a taxpayer lives (or has a domicile) and salaries are taxed only in the country where the employment is exercised, whereas interest and dividends are taxed in the country where he/she lives and may be taxed at limited tax rates (10% or less) in the country where the entities paying them are situated . Capital gains resulted from selling real estates are taxed only in the country where the real estates are situated. When a nonresident receives proceeds from the sale of real estate in Japan, the payer has to withhold 20.42% income tax from its purchase price, except when the price is ￥100 million or less and the purchaser will use the estate as his/her own home. Therefore, you probably have paid too much tax on Japanese source income through withholding. You would have stopped or mitigated the withholding from your pensions, interest and dividends if you had filed "Application form for income tax convention" through the payers to the tax office concerned before you received the income. Now that the ordinary rate of tax has been withheld from your Japanese income, you are supposed to have the overpaid tax refunded by submitting the form "Application form for refund of the overpaid withholding tax …" through the payers to the tax office.
As to the Japanese resident period from January to June, you may be able to get a refund by filing your income tax return. All the withholding tax on the sale of your home may be refunded by applying the special deduction of ￥30 million that is allowed for the capital gain resulted from the sale of home. You were supposed to file your half-year's income tax return before you left Japan, otherwise, appoint your relative, friend or anyone as a tax administrator who would settle your tax matters such as filing your tax returns or paying taxes in behalf of you in Japan. The administrator would file your income tax return in the ordinary tax season. Taxation of your Japanese source interest and dividends accrued after you leave Japan is to be finished by withholding and you may be able to deduct the withholding tax from your US tax by applying for the foreign tax credit in US.
You may find it too hard to take the steps for settling your tax matters. If you would like me to settle the matters or file your income tax return in behalf of you, I will accept it at the fee which is shown in "Tax Accountant Fee". I will also accept to be appointed as your tax administrator in Japan. Please let me know the details of your situation by mail, I will give you some advice and inform you of roughly estimated fee for the service.
We can talk on the telephone if you speak slowly.
2021.1.24
Tax accountant Yoshitsugu Kobayashi
Tax Accountant Fee
Return to Menu
Tax accountant Self Introduction
Tax Accountant Fee
(Including assistance fee in English)
Ⅰ Income tax return
Total fee = Basic fee + Individual fees based on items + consumption tax
1. Basic fee: ￥ 10,000 per 1 return
2. Individual fees based on items
(1) Income
① Capital gains on sale of real estate
Domestic: ￥ 60,000~ per 1 sale
Overseas: ￥ 70,000~ per 1 sale
(Fee will be raised depending on the complexity or laboriousness)
② Capital gains taxed as the aggregate taxation income: ￥ 20,000 per 1 sale
➂ Capital gains on sale of securities
Sales in the legally specified accounts: ￥ 15,000 per 1 account
Sales in general accounts: ￥ 10,000 per 1 sale
Sales overseas including dividends if necessary: ￥ 20,000 per 1 sale
④ Salary, Pension or Temporary Income: ￥ 4,000 per 1 slip of withholding or notice
⑤ Stock based compensation including its dividends: ￥ 20,000 per 1 return
⑥ Other miscellaneous income: ￥ 10,000~ dependent on the contents
⑦ Business, Real estate Income: ￥ 40,000~ dependent on the contents
(2) Income deductions and tax credits
① Medical deduction
Sorted and calculated: ￥ 4,000 per 1 return
Unsorted or uncalculated: ￥ 240 per 1 receipt
② Donation deduction: ￥ 1,200 per 1 receipt
➂ Miscellaneous loss deduction: ￥ 8,000~ dependent on the contents
④ Housing loan credit
The initial year: ￥ 12,000 per 1 return
From the second year: ￥ 6,000 per 1 return
⑤ Foreign tax credit: ￥ 6,000~ dependent on the contents
Ⅱ Consumption tax return (If requested additionally)
(1) Ordinary calculation method: 30% of fee for business or real estate income
(2) Simplified calculation method: 20% of fee for business or real estate income
Ⅲ Others: depending on contents Please ask me.
Inquiry
Tax Accountant Self Introduction
Devote experience of 40 years and trust
Yoshitsugu Kobayashi
#212, 2-9-50, Saginuma, Narashino, Chiba,
Japan 275-0014
Yxiaolin117@gmail.com 090-6075-2437
WORK HISTORY
✴ Opened own office in February 2020
✴ Japanese tax accountant certified in October 2018
✴ Employed by an tax accountant firm in Tokyo (July 2018 ~ January 2020)
Advised firm employees on interpretation of tax laws and treatment of actual tax cases.
Engaged in preparing tax returns and tax planning for clients.
✴ Employed as a tax officer belonging to Tokyo National Tax Bureau (April 1980 ~ June 2018)
Worked in the department of assets‐related taxes handling with capital gains and inheritance & gift tax for 33 years, including 5 years in the section specialized in overseas assets or cases, in the department of general individual income tax for 3 years, and in the department of corporate tax for 2 years.
EDUCATION
Nagoya University, Japan graduated in March 1979
✴ Bachelor of Politics
✴ Courses taken: Laws, Politics and Economics
SKILLS
✴ TOEIC 910 (2001)
✴ Enrolled Agent of US tax (registered 2003~2012, unused)
✴ 40 years of practical experience in interpretation or operation of tax laws and regulations.
Respond to almost any asset-related national tax cases such as cases of inheritance, gift or
capital gains on the basis of abundant experience and knowledge on the field.
✴ Be able to consider individual tax matters comprehensively with the corporate tax concerned.
Hobby
Swimming
✴ Swim 1 kilometer once a week.
