Living Guidebook for Foreign Nationals in Iwate

Rules of
Daily Life

Japanese Taxation System

Taxation of Foreign Nationals

Income Tax

Income Tax Returns

Tax Deductions

Income from Wages and
Salaries

Inhabitant’s Tax

Consumption Tax and Local Consumption Tax

Stamp Tax

End of Year Tax Adjustments

End of Year Tax Adjustments

As it is often the case that the total amount of income tax withheld from your salary each month by your employer differs from your total income tax liability for the year or your income tax deductions differ for that year, at the end of each year your employer will adjust your salary for any excess or shortage in the amount of tax withheld so that an exact calculation results. This is called the ‘End of Year Tax Adjustment’.

This adjustment is the responsibility of your employer, who will normally ask you to submit the necessary documents for special spousal ( >> Income Tax), insurance ( >> Income Tax), and other deductions by November.