Filing taxes in Japan can seem like a daunting prospect. However, with a few key terms, you will soon be filing like a professional accountant—no briefcase or perfectly pressed suit required.
We’ve all been there. Smiling in anticipation as we open our first payslip, but when we open the letter, the amount is a lot smaller than we expected. You try to work out why, but it’s full of complicated kanji like 所得税 (income tax) and 社会保険 (social insurance).
Different types of taxes
The answer to your decreased wages is that most of us have deductions beyond income tax like social insurance and resident’s tax (住民税). For the most part, these are simply the expenses that come with living and working in Japan.
Here are some taxes that all of us need to get familiar with.
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