Local Taxation for Foreigners Starting a Business in Japan

【Koshida Accounting Firm Column Date:

Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.


I aim to assist non-Japanese business owners who struggle with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.


This blog may help if you are unclear about local taxation in Japan.



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Who is liable?

If one has received permission to stay in Japan for more than three months and has a domicile as of January 1st of the following year, they are required to pay local taxes.


Tax Amount

Local taxes are levied in the subsequent year based on the taxable income from the previous fiscal year. It is calculated by multiplying an amount, which is almost equivalent to the taxable income for individual income tax, by a flat rate of 10%.



Our accounting and tax office has been actively assisting foreign business owners in Japan with accounting and tax matters. Also, not only in the tax and accounting field, our office can support your business in Japan in the fields of visa, registration, social insurance, and law by networking with specialists. Plus, we have networked with specialists in web marketing, building websites, and business consulting suitable for Japanese customers. All services are provided in English. Please feel free to reach out to us through the inquiry form.