RetireJapan

I've been working as a freelancer in Japan for a number of years, which means I've been going to the tax office with my tax form, and the amount of withholding tax I've paid, and any expenses, and usually ending up with a refund.

I'm now about to start a full time employment position, and they are asking about 'resident tax' and 'regular collection' or
special collection' and I'm realising I don't understand this stuff as well as I thought.

I know there is a local Inhabitant Tax that I've been paying to my ward every year, but is that the equivalent of 'Residence tax'?
Is there some kind of national Residence Tax, and is that the same as the withholding tax?

It seems that 'regular collection' means paying it yourself, but 'special collection' means the company deducts it directly. Is this right?
Is there any downside to special collection?
Does this apply to the local Inhabitant tax, the national income/residence tax, withholding tax?

More generally, if I'm starting in september, that means I have 8 months of withholding tax paid, plus a few expenses.
Do I just pass that info on to my new employer and let them figure it out, or am I still going to need to file my own tax return for this year?

From next year I wouldn't have to do anything, right?

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am I know there is a local Inhabitant Tax that I've been paying to my ward every year, but is that the equivalent of 'Residence tax'?

Yes.

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am Is there some kind of national Residence Tax, and is that the same as the withholding tax?

No.

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am It seems that 'regular collection' means paying it yourself, but 'special collection' means the company deducts it directly. Is this right?

Yes.

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am Is there any downside to special collection?

Not really. Your employer will will know how much tax you pay. It's paid monthly instead of quarterly.

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am Does this apply to the local Inhabitant tax, the national income/residence tax, withholding tax?

There is no "witholding tax". National income tax and residence tax are withheld from your salary (along with pension, health insurance, and unemployment insurance).

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am More generally, if I'm starting in september, that means I have 8 months of withholding tax paid, plus a few expenses.
Do I just pass that info on to my new employer and let them figure it out, or am I still going to need to file my own tax return for this year?

I think you will switch from regular collection to special collection, but the company should do the application to your municipality on your behalf. They will ask you do to a Nenmatsu Chousei in December, which is the simplified equivalent of a Tax Return for salaried employees, and you'll get the refund in your salary payment. But because you have income from multiple sources, I think it might be simplest to skip the Nenmatsu Chousei this year and to the tax return as usual (more likely is you will do the Nenmatsu Chousei anyway because the company won't like skipping it, and then plug the result of that into the tax return next year). From next year's income, if you don't have anything that can't be covered by the Nenmatsu Chousei, you won't have to do the tax return any more.

RetroNewbie wrote: ↑Wed Aug 03, 2022 9:35 am From next year I wouldn't have to do anything, right?

Right. Except maybe one last tax return to cover this year's income.

This is good information to add to https://retirewiki.jp/wiki/Residence_Tax, will do that this weekend!

adamu wrote: ↑Wed Aug 03, 2022 12:46 pm This is good information to add to https://retirewiki.jp/wiki/Residence_Tax, will do that this weekend!

Thank you for your service

RetireJapan wrote: ↑Wed Aug 03, 2022 12:59 pm Thank you for your service

Thanks. Although Kuma also contributed to that article, and the idea is for the most of the content to be written by people other than me . I need a community manager / marketer, where can you get one of those for free?