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Hello everyone!

For foreigners living in Japan, the taxation system and preferential treatment are probably a point of concern.

Japan has a tax incentive system for foreign students, short-term residents and foreigners with certain skills, which can reduce your tax burden if you meet the applicable conditions.

However, in order to make good use of the system, it is essential to understand the detailed conditions and procedures.

This article introduces the specific details and application methods of the tax benefit system for foreigners in an easy-to-understand series.

3. Issues related to foreigners paying taxes in Japan
When foreigners pay taxes in Japan, lack of understanding of residence categories and tax incentive systems, and complicated procedures are challenges that need to be addressed appropriately.

Tax refund system for foreigners in Japan

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Contents

Eligible persons

Foreigners who meet certain conditions (e.g. foreigners who return to their home country in the middle of the year).

Taxes eligible for refund

Income tax, inhabitant tax

Refund mechanism

Refunds can be obtained if the tax paid is excessive or if certain deductions are applied for.

Conditions for refund

If you return home in the middle of the year or if your educational or medical expenses exceed certain thresholds.

Necessary procedures

Tax return is required. Apply for refundable credits and tax treaties.

Documents to be prepared

Prepare the necessary documents and certificates (e.g. proof of expenses) in advance.

Place of procedure

Tax refunds can be processed at tax offices. Consultation and advice on tax returns are also available.

Points to note

Advance preparation is required to apply for a refund. Accurately ascertain your tax payment status to avoid an extra tax burden.

In Japan, a tax refund system is available to foreigners who meet certain conditions

This system allows for refunds if the income tax or inhabitant tax paid is excessive or if certain deductions are applied for.

For example, a foreigner who returns to his/her country in the middle of the year may have paid more tax in advance on his/her income during the year, in which case he/she can apply for a tax refund. Tax refunds require a tax return, and it is important to apply for refundable deductions and applicable tax treaties when filing the return.

You may also be eligible for a tax refund if expenses paid while living in Japan exceed certain thresholds, such as deductions for education and medical expenses. When applying for a refund, you will be required to submit the necessary documents and certificates, so it is advisable to prepare them well in advance.

The procedure is carried out at the tax office, where you can also receive advice and consultation on your tax return.

It is important to have an accurate understanding of your tax situation, as this can help you reduce unnecessary tax burdens and receive an appropriate refund.

What are the conditions under which foreigners are exempt from taxation?
The conditions under which a foreigner is exempt from taxation in Japan mainly relate to the length of stay and the place where the income is generated.

In general, foreigners who stay in Japan for less than one year and are treated as ‘non-residents’ are only taxed on their domestic income, while their foreign income is exempt from taxation. Furthermore, if a foreigner visits Japan on a short-term tourist visa and does not earn any income, he or she is also excluded from taxation and is therefore exempt from taxation.

In some cases, tax treaties also provide for income tax exemptions if certain conditions are met. For example, if an international student who has come to Japan to study in his/her home country obtains tuition assistance, his/her income is often treated as tax exempt.

However, whether the income is tax-exempt or not depends on the type and amount of income and the purpose of the stay, so it is necessary to consult the tax office or a specialist to confirm whether you are eligible for tax exemption. Understanding these conditions will help you to deal with tax payments accurately and avoid unnecessary tax burdens.


The choice is important for all foreigners.

Check the conditions carefully and protect your assets to avoid any losses.

Stay tuned for next week!


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