Tax Number In Japan: An Expats Guide
Navigating the financial landscape of Japan can feel like deciphering an ancient script, especially when it comes to the enigmatic tax number system, right? Fret Not! we’ve got your back!
Whether you’re setting sail as a business owner or anchoring down as an employee, understanding your tax obligations is crucial. This guide illuminates the path through Japan’s tax number maze, ensuring you stay compliant while focusing on what truly matters—your life and work in Japan.
Let’s dive in!
What Is The Tax Number In Japan?
The tax number is an identification number assigned to both Japanese citizens and foreign residents.
Under the Social Security and Tax Number System, every person registered on a certificate of residence will be assigned a 12-digit Individual Number on their My Number Card.
It is used for various administrative procedures and is required when filing tax returns, tax payments and other tax-related transactions in Japan.
The My Number is also used by employers to report employee income and by financial institutions to report their financial transactions.
Furthermore, a majority of application forms submitted to the Health Insurance Association require entry of the Social Security and Tax Number.
What Is The Process Of Obtaining Your Tax Number/ My Number Card?
You will receive your My Number card in Japan by mail.
First of all, fill out an application form provided by the municipal office. The form will require personal information such as your name, address, date of birth, and other relevant details.
Along with the application form, submit the required documents as instructed by the municipal office. This may include identification documents, proof of residency, and other supporting paperwork such as your resident card, passport, etc, to verify your identity and residency status.
Afterwards, you will receive a notice in the mail informing you that your “My Number” card has been issued.
The “Notice of My Number” will be sent by mail to foreigners after completing the registration
After you’ve visited your local ward office for the registration of your address, you’ll be given a “My Number” number.
If you need the number, the person assisting you will write it down for you.
A notification card will be mailed to you after some time, along with an application and an extra envelope. Your “My Number” information will be printed on the notification card.
Your “My Number” card is covered by the application that came with the notification card.
Submit this application, then you will receive another notice in the mail regarding the completion of your “My Number” card and that it is ready for pickup.
In the scenario that you have missed the delivery, the postman will leave you a delivery notification. If you do not contact the post office within one week, the letter will be forwarded back to the municipal office and you will be forced to go and receive it.
It is recommended to inform the post office if you have received the delivery notice.
What If You Have Lost Your My Number Card?
If you have lost the card, contact the number shown below immediately and invalidate the card functions of an electronic certificate.
In addition, notify the relevant municipal office for your place of residence.
If the lost card is found after the temporary stop of card functions, the functions can be restored at the relevant municipal office.
In the case where you have lost the card or damaged it seriously and hope to have it reissued, apply at the relevant municipal office for your place of residence. Furthermore, bring the notification of loss issued by the police.
If the card is burnt, bring the notification of damage issued by the fire department.If the card has been damaged seriously, bring it to the relevant office. Fees specified by your local municipal office will be charged for reissuing a card due to loss, etc.
If the card information needs to be changed due to a move, marriage, etc., take the card to the municipal office at the time of submitting the notification of the move or marriage.
Your new address or name will be added to the card.
For people aged 20 or older the validity of the card is from the date of issue until the 10th birthday after that date.
For people younger than 20 the validity is from the date of issue until the fifth birthday after that date.
It is recommended to apply for renewal of the card within the term of validity. Application is accepted three months before the end of the term of validity at the municipal office..
Additionally, take precaution to protect your password.
What Role Does My Number Card Play In Freelancing And Paying The VAT?
As a freelancer in Japan, you would need to declare your income and pay taxes using your My Number. When you engage in freelance work, you are generally responsible for reporting your income to the tax authorities and fulfilling your tax obligations.
Japan has a consumption tax rather than a Value Added Tax (VAT).
If you are conducting business as a freelancer and are not a permanent employee of a company, you should consider other aspects of taxation, such as consumption tax (VAT) if your annual sales exceed a certain threshold.
Paying these taxes involves the 12 digit number on your My Number card.
Conclusion
With the final dot placed on our map through Japan’s tax number terrain, you’re now equipped to traverse the financial frameworks with confidence. Remember, being well-informed about your tax number not only keeps the taxman at bay but also paves the way for a smoother financial journey in Japan.
Embrace this knowledge as your shield, and let your focus return to crafting a fulfilling experience in the Land of the Rising Sun.
Tax Simplified!
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