Do you know that some of the money you sent to your family living outside Japan will be returned?

Those who have worked for a Japanese company for one year or more are judged to be residents, and the taxable range and taxation method when they are classified as permanent residents are treated the same as Japanese.

Principle method of tax payment

As a general rule, the company will withhold tax each time salary is paid, and will be subject to year-end adjustment at the end of the fiscal year.

However, if you intend to apply for the dependent deduction, spouse deduction, disability deduction, or special spouse deduction for foreign relatives, you should submit the “Deduction for Dependents of Salaried Income” etc. to the payer of salary, etc. When submitting, it is necessary to submit or present “relative documents” and “transfer documents” related to the foreign resident relative.

This is an example of the description of the dependent deduction (transfer) declaration for salaried employees (from the National Tax Agency website).

Except for non-permanent residents (who do not have Japanese nationality and have had an address or residence in Japan for 5 years or less within the past 10 years), even those who have come to Japan from abroad Global income is taxable. Therefore, if you have real estate income in your own country, you will also need to declare that income.

How to file a tax return

You can file a tax return if the deduction items are not reflected in the tax calculation in the company’s year-end adjustment, for example because you did not inform your employer about your dependents in your country. The range of relatives is the same as for spouses, relatives within the sixth degree of kinship, and relatives within the third degree of kinship.

When applying the disability deduction or calculating the tax exemption limit for residence tax, the same documents are required for relatives under the age of 16.

If you are a foreigner and want to file a tax return, you will need to prepare the following documents.

・ Withholding slip

・ A copy of the residence card (or alien registration card)

・ Confirmation regarding living style, etc.

・ A copy of the bankbook, etc.

Furthermore, if there are dependent relatives overseas,

・ Relatives documents

・ Remittance documents

are required.

If only salary income makes a final tax return, use “Declaration Form A”.

Precautions for required documents

From here, I would like to mention the points to be aware of in various documents required for final tax returns.

｜ Check the withholding slip

Check if the address and name of the person receiving the salary is entered correctly and if the withholding tax amount is correct. If you are a non-resident and have a tax withholding of 20.42%, ask your employer to correct it and reissue it.

If you change from a non-resident to a resident in the middle of the year, you will not be required to file a refund for your salary income during the non-resident period because the taxation has been completed by tax withholding. Also, if you join the company mid-career, make sure that the previous data is written correctly.

｜About residence card

Attach a copy to your tax return and carry it with you when you come to the tax office. If you move during the year, you need to bring it to the municipal office where you are moving and report it. If the place of residence on the withholding slip and the residence card are different, prepare an apartment contract or utility bill receipt.

If you have been a non-permanent resident in that year, you will need to submit a “confirmation letter regarding living style, etc.” and will post the information from your residence card. If you are a non-permanent resident, you can also write it in the “Confirmation table for the period you had your address or place of residence”. The period of having an address or residence in Japan within the past 10 years will be confirmed by the passport record.

｜ Relatives documents and remittance documents

First of all, kinship documents are any of the following documents.

・ A copy of the attached slip of the family register and other documents issued by the national or local government and a copy of the passport of a relative living abroad

・ Documents issued by a foreign government or a foreign local government (family register copy, birth certificate, marriage certificate, etc.)

If a spouse’s grandparents are eligible for the dependent deduction, a spouse’s birth certificate and a spouse’s parents’ birth certificate are required in addition to the spouse’s marriage certificate.

Next, regarding remittance-related documents, one of the following documents will clarify that the resident made a payment to each person in the year to cover the living expenses or educational expenses of the foreign resident relatives. I say things. Therefore, if you have multiple dependents, you will need to transfer money to each account.

・ A copy of the foreign remittance request form

・ Credit card statement, etc.

If kinship documents or remittance documents are written in a foreign language, the translation must also be submitted or presented.

The following bullet points list the points that are likely to cause inadequacies in relative-related documents and remittance-related documents.

[Documents related to relatives]

・ A driver’s license issued by a foreign government does not correspond to kinship documents.

・ In the case of maiden name notation, documents that show the current name and surname are required

・ A copy of the passport of a relative living abroad is required along with the attached slip of the family register.

・ The copy of the passport must include the name and date of birth of the relatives residing abroad.

[Documents related to remittance]

・ If you are sending money to one representative, only that representative is applicable *

・ Do not use a joint name account that cannot be shown to be sending money to individual foreign relatives.

・ Foreign remittance request forms are applicable as long as they meet the required items.

・ Credit cards are judged by the date of use, not the date of withdrawal

In principle, documents are required for all remittances, but if there are remittances more than three times a year, you can submit or present them at the beginning and end of the year.

Other notes

If you decide to return to Japan, you must file a semi-final tax return (income until departure) by the time you leave Japan, unless you appoint a tax administrator. The income deduction will be determined based on the current situation at the time of departure.

If you are working as a Japanese expatriate of a foreign company and plan to return to Japan within 5 years, you will be classified as a non-permanent resident, so if you have other income in your own country, you may be paid in Japan. Unless the money is remitted, the income will not be taxed.

Although it is a refund declaration, it is also possible to declare for the past 5 years. In principle, the overseas income of foreign-resident relatives is not included in the total income amount in the judgment of dependent deductions.

Conclusion

The documents to be submitted are becoming stricter than before, and foreigners who are considering filing tax returns are advised to make early preparations such as ordering the necessary documents.