• Income tax (a national tax)
• Residents' tax (a local tax)
  

You can find additional information about Japanese taxes on the following website:

• National Tax Agency

Income Tax

Income tax is calculated on January 1 each year, based on your total income from January 1 to December 31 the previous year. If you are employed by RIKEN, income tax will be automatically deducted from your salary. At the end of the year, RIKEN will adjust for over- or underpayment of taxes. This is known as the year-end adjustment.

Please refer to the National Tax Agency's website for full details.

Residents' tax

Residents’ tax is a local tax based on your income. It usually consists of municipal tax and prefectural tax, bundled together.

There are a few key points to note:

• This tax is based on your previous year’s income (January–December) and is then paid monthly starting from June.
• This means that you won't pay any residents' tax in your first year since it is your first year’s salary that will be used to calculate your residential tax rate.
• Anyone who is living in Japan on January 1 is required to pay residents' tax for the entire upcoming year.
• This tax may be automatically deducted from your salary, depending on your employment contract. If it is not automatically deducted, you will be sent instructions on how to pay in June.
• When you leave RIKEN, adjustments may be made to your last month’s salary to collect previously uncollected residential taxes.

Year-end Tax Adjustment

Around the end of October, you will receive some documents to fill out for the year-end tax adjustment (Income Tax). This is to correct any over- or underpayment that may have resulted from your taxes being deducted from your salary through the year.

For foreign researchers working at RIKEN, the most common deductions are Deduction for Spouse and Deduction for Dependent. If your family members or other dependents have changed (for example if you got married or had a baby this year), you should write this information in the appropriate form.