Frequently Asked Questions
【Koshida Accounting Firm Column Date:】
I heard about the year-end tax adjustment in Japan. What is it like?
In Japan, employees are withheld income taxes from their monthly salaries. These tax amounts are temporary, so businesses that employ them conclude and settle income taxes when they pay their last wages at the end of the year. This is the year-end tax adjustment in Japan. In light of that, employees do not need to file tax returns unless they get other incomes.
Understanding Japanese Taxes: Year-end Tax Adjustment