《外國稅制》-chapter-VII課件

ChapterVIITaxationinJapanAfterWorldWarII,Japanadoptedataxsystemrelyingmainlyondirecttaxes,likethoseintheUnitedStatesandtheUnitedKingdom.Themostimportantofthesearetheincometaxandcorporationtax.TheNationalTaxAdministrationAgency,abranchoftheMinistryofFinance,administersincomeandcorporationtaxlaws.Inaddition,theTaxSystemCouncilfilesrecommendationsforrevisionofthesystemeverythreeyears.Individualsaresubjecttoanationalincometaxaswellaslocal(prefecturalandmunicipal)residenceandbusinesstaxes.ChapterVIITaxationinJapaAdditionalnationaltaxesincludecustomsduties;a5%value-addedtax;astamptax;inheritanceandgifttaxes;amonopolyprofitstax;asugarexcisetax;taxesonliquor,gasoline,andothercommodities;andtravel,admissions,andlocalroadtaxes.Additionalnationaltaxesincl1.PrinciplesoftheJapaneseTaxSystemAtaxpayerinJapanisdefinedasanyonespendingmorethan6monthsinthefiscalyearonJapanesesoil,regardlessofnationality,residencestatus,employmentstatus,sourceofincomeandcurrentlocation(bank)ofincome.Ifyouhavespentlessthan6months(cumulated)inJapan,youneedtodeclareyourtaxesinthecountrywhereyouhavespent6monthsinthefiscalyear.1.PrinciplesoftheJapanese2.Maintaxes2.Maintaxes2.1.Corporateincometaxes2.1.1.CorporatestatusForthepurposeofJapanesecorporatetaxes,foreignenterprisesoperatinginJapanareclassifiedasdomesticcorporationandforeigncorporation.DomesticcorporationSubsidiaries,jointventures,etc.establishedundertheJapaneselawhavethisstatus,andareliableforthetaxesontheirentireincome.ForeigncorporationBranchesinJapanofcorporationsestablishedandregisteredoutsideJapanfallunderthisstatus.ThescopeoftaxableincomeforcorporateincometaxpurposesdiffersdependingonthemanneroftheiroperationinJapan,however,itislimitedtoincomefromsourceswithinJapan.《外國稅制》-chapter-VII課件2.1.2.NormalcorporateincometaxesJapanesecorporateincometaxesconsistofcorporationtax(nationaltax)undertheCorporationTaxLaw,andlocaltaxesundertheLocalTaxLaw,whicharebusinesstax(prefecturetax),prefecturalinhabitanttaxandmunicipalinhabitanttax.2.1.2.Normalcorporateincome

2.1.3.Taxrates

Note:(1)Asmallandmedium-sizedcompanyisacompanywhosepaid-incapitalisJPY100millionorless(2)15percentisappliedtofiscalyearsbeginningbetween1April2012and31March2015.(3)Notethata10-percentspecialreconstructioncorporationtaxwillbeimposedonthecorporationtaxliability2.1.3.TaxratesNote:(1)AsInadditiontocorporatetax(anationaltax)therearetwoclassesoflocaltaxpaidbythecorporation:

1)InhabitantTax.

2)EnterpriseTax.

ThesetwoclassesoflocaltaxsignificantlyincreasetherateofJapancorporatetax,sothatitmay,inactualfact,reachabout41%.Inadditiontocorporatetax(《外國稅制》-chapter-VII課件2.1.4.TaxableincomeofDomesticCorporations:Domesticcorporationsareliableforcorporateincometaxesonincomeforeachaccountingperiodattheratesasmentionedabove,andonliquidationincomeuponliquidation.Moreover,certaindomesticfamilycorporationsareliableforaspecialtaxonretainedearningsforeachaccountingperiod.Taxableincomerepresentsthenetofgrossrevenuelesscosts,expensesandlosses,nomatterwheretheyaccrue,calculatedingeneralinaccordancewithfairaccountingstandardsofJapanandinparticularasadjustedinaccordancewiththerequirementsofthetaxlawsofJapan.2.1.4.TaxableincomeofDomes2.1.5.

ForeigncorporationForeigncorporationsareliablefortaxesonincomederivedfromsourceswithinJapanonly.ThescopeoftaxableincomeandthemannerinwhichincometaxesarepayabledifferdependingonhowtheystandforJapanesetaxpurposes.2.1.5.Foreigncorporation2.1.6.FilingofreturnsandpaymentoftaxesCorporateincometaxreturnsarerequiredtobefiledwithintwomonthsaftertheendofeachaccountingperiodandtaxespaidthereon,unlessanextensionisappliedforandapprovedbythetaxoffice.Aone-monthextension.ifapplied,isautomaticallyapproved.Afinalreturnmustbeaccompaniedbyfinancialstatementsandsupportingschedules.Non-filingoffinancialreturnswillcauseanon-filingpenaltyof5or10percentandwillbeareasonforcancellationoftheblueformreturnfilingprivilege.2.1.6.Filingofreturnsandp2.1.7.

PrivilegesundertheblueformreturnsystemThissystemisintendedtoencouragetaxpayerstomaintainproperaccountingrecordsandapplytheretofairaccountingstandards.Privilegesforcorporationsfilingblueformreturnsincludethefollowing:a.Carryforwardoflossesforfivesucceedingyears.b.Carrybackoflossesforoneprecedingyear(notapplicabletobusinessandinhabitanttax)c.Nocorrectionofincomebythetaxauthoritieswithoutphysicalinspectionofthebooksandrecords.2.1.7.Privilegesunderthebld.Thetaxauthorities'obligationtostateareasonforcorrectionofincome(orloss)wherecorrectionismade.e.Establishmentofreserves.f.Specialdepreciation,whereapplicable.g.Taxcreditforincreaseinresearchanddevelopmentexpenses.d.Thetaxauthorities'obliga

2.2.

IndividualIncomeTax

2.2.1.IndividualincometaxesofJapanIndividualincometaxesofJapanconsistofnationalincometaxandlocalinhabitanttax.Moreover,thoseindividualswhoareoperatingcertainspecifiedbusinessesoftheirownatfixedplacesinJapanareliableforenterprisetaxassessablebyprefecturalgovernments.IncometaxispayableinaccordancewiththeIncomeTaxLaw,andthetaxableyearisthecalendaryear.Inhabitanttaxisassessedbytheprefecturalandmunicipalgovernments,onincomefortheprecedingyearinaccordancewiththeprovisionsoftheLocalTaxLaw.

2.2.IndividualIncomeTaxAnindividualpaystaxonhisincomeasawage-earnerorasaself-employedperson.Taxforanindividualwhomeetsthecriteriaofa"permanentresident"inJapanwillbecalculatedonhisincomeinJapanandabroad.AforeignresidentwhoisemployedinJapanpaystaxonlyonincomeearnedinJapan.Anindividualpaystaxonh2.2.2.TaxpayersinJapanaredividedin3differentgroupsforwhichtaxesareapplieddifferently.Resident:Apersonwhohasanaddress(domicile)inJapanandhasresidedcontinuouslyinJapanforoneyearormoreisregardedasaresident.NonPermanentResident:ApersonwhohasnointentionoflivingpermanentlyinJapanandwhohashadanaddress(domicile)orresidenceinJapancontinuouslyfornotmorethanfiveyearsisregardedasanonpermanentresident.Permanentresident:Allresidentotherthannon-permanentresidentsarepermanentresidents.Nonresident:Allindividualswhoarenotresidentsarenonresidents.2.2.2.TaxpayersinJapanareThewayJapaneseincometaxesareapplieddependonthetaxpayersituationgiveninthetablebelow.SourceofTaxableIncomeIncomefromSourcesinJapanIncomefromSourcesabroadPaidinJapanPaidAbroadPaidinJapanPaidAbroadNP:TaxableTaxableTaxableOnlytheportiondeemedremittedtoJapanistaxable.(thismeansthattheremainderretainedabroadisnottaxable.P:TaxableTaxableTaxableTaxableNR:InprincipletaxableNottaxableThewayJapaneseincometaxesEmployeesinJapan(Japanesenationalsandforeigners)havetheirtaxesautomaticallytakenout(bylaw)oftheirmonthlypaycheckbytheiremployer(thatisreferredasthewithholdingincometax),andtheamountofthesetaxesareusuallyabithigherthantherealincometaxrates.Attheendoftheyear,therealincometaxesarecalculated(referredasassessmentincometax)andthedifferencebetweenthewithholdingtaxandtheassessmenttaxisreturnedtothetaxpayer.EmployeesinJapan(JapanesenTaxpayerswhoareemployed(subjecttothewithholdingincometax)andwhohaveagrossincomeoflessthan20,000,000yensinthefiscalyeardonotneedtotofileanytaxreturnoranything,astheseareautomaticallydonebytheemployer.Forthoseluckyonesmakingmorethan20millionyensintheyear,justgotothetaxofficenearyou,andasktogethelptofilltheforms.Withhelp,it'strivialtofilltheseforms;withouthelphowever,it'sarealpain.Taxpayerswhoareemployed(su2.2.3.Taxableincome1)Interestincomefromdeposits,publicbondsanddebenturesandthedistributionofgainsofajointoperationtrustorapublicbondsanddebenturesinvestmenttrust.OtherinterestisincludedinmiscellaneousincomeshownasNo.10below,ifnotbusinessincome.Withholdingincometaxisdeductedatsourceattherateof20percent.2.2.3.Taxableincome2)Dividendincomesuchasdividendsdeclaredfromprofits,distributionofgainsofasecurityinvestmenttrust,etc.Taxabledividendsincomeisthegrossreceiptlessinterestonborrowingsfortheacquisitionoftheprincipal,andistaxedinthefollowingmanner:(1)Withholdingincometaxisdeductedatsourceattherateof20percent.(2)Dividendsincome,inprinciple,isrequiredtobeaddedtoordinaryincome;however,therearethefollowingexceptions:(a)Whereadividendreceivedfromonedomesticcorporationdoesnotexceed\50,000,suchdividendisnotrequiredtobedeclaredduringtheyears.(b)Separatetaxationcanbeappliedforatthehigherwithholdingtaxrate((35percent).2)Dividendincomesuchasdiv3)Realestateincomefromtheleaseofrealestate,etc.Grossreceiptslessnecessaryexpensesaretaxable.4)Businessincomefrombusinessactivities.Grossreceiptslessnecessaryexpensesaretaxable.5)Employmentincomeincludesremuneration,salaries,wages,pensions,bonusesandotherallowancesofasimilarnature.3)Realestateincomefromthe6)Retirementincomeincludeslump-sumretirementallowancesandotherallowancesofasimilarnature.Theretirementincomeisseparatelyfromotherincome,andthepayerofretirementincomeinJapanisrequiredtowithholdbothincomeandinhabitanttaxesatsource.Thetaxableretirementincomeis50percentofthenetofthegrossreceiptslessthecertaindeductiondependingonhis/herlengthofservices.7)Timberincomeistaxedseparatelyfromotherincome,andthetaxableamountthereofisthenetofthegrossreceiptslesscostandexpensesaswellasthestandarddeductionof\500,000.8)Capitalgainsrepresentincomederivedfromthesaleortransferofassets,includingtherighttouseland,otherthanthosefallingunderothercategoriesofincome,suchastimberincome,businessincome,etc.,andtheamountofsuchincomeiscomputedbydeductingfromthegrossreceiptsfromtheassetssoldortransferredthetotaloftheacquisitioncostandexpensesincurredinconnectionwiththesaleortransfer.6)Retirementincomeincludes9)Occasionalincomeisincomeofanoccasionalnature,suchasprizemoney,deductionof\500,000fromthenetofthegrossreceiptslessnecessaryexpenses.Fiftypercentofsuchamountisaddedtoordinarytaxableincome.10)Miscellaneousincomeisincomeotherthantheforegoingcategoriesofincome,andthenetofthegrossreceiptslessnecessaryexpensesisaddedtoordinarytaxableincome.9)Occasionalincomeisincome2.2.4.TaxrateThefollowingtableshowsJapanindividualincometaxrates:

From2015,thehighesttaxratewillberaisedfrom40percentto

45percentfortaxableincomeinexcessofJPY40million.

2.2.4.TaxrateFrom2015,the

2.3.InhabitantTaxInJapan,inadditiontotheratesofincometaxforanindividualandforcorporations,an"inhabitanttax"isimposedthatsignificantlyincreasestherateofeffectivetaxthatappliestotheincomeofthebusiness.Themethodofcalculationisrathercomplicatedandiscomprisedoftwodifferentlevies:

1)Alevyonincome

2)Alevyoncapital

2.3.InhabitantTaxTherearesmalldifferencesbetweentheregionsinJapaninregardtothefinaltaxasaresultofthelocationofthebusiness,aswellastakingaccountofthenumberofemployees.Detailsoftheamountsoftheinhabitanttax.

CapitalLevy(yen)IncomeLevy(%)Companies70,000-3,800,00017.3%-20.7%Individuals3,000-4,0005%-15%Therearesmalldiffe

2.4.

EnterpriseTaxThistaxisimposedonenterprisesthataremanagedinJapan.Theacceptedrateforindividualsis3%-5%.Theratesforcorporationsare5.6%to12.1%(thehigherrateisinrespectofacorporationwithincomeinexcessof8millionyen).

2.4.EnterpriseTax

2.5.ConsumptionTax

Thetaxissimilartovalueaddedtaxandis,infact,imposedonmostsalesandservicesprovidedinJapanandonimports.Abusinessmanmayoffsettheconsumptiontaxpaidonexpensesagainstthetaxhehastopayonhisincome.Consumptiontaxis5%(4%national,1%prefectural)Shopsandotherserviceprovidersarerequiredtoincludetheconsumptiontaxinthepricesshown.

Thethresholdforregistrationis10millionyen.

2.5.ConsumptionTax

IncomethatisexemptfromConsumptionTaxExportSaleofrealestateForeigncurrencytransactionsInterestSaleofstampsMedicalservicesIncomefromtuitionfeesRentalofrealestateforresidentialpurposes

IncomethatisexemptfromC

2.6.InheritanceTax

InthecaseofaJapaneseresident,thetaxisonallinheritances,includingthosethathavetheirsourceoverseas.Forforeignresidents,theobligationissolelyinrespectofassetsinJapan.Theratesofthetaxarebetween10%-50%andtheyareimposedprogressivelyaccordingtothevalueoftheasset.Thereisanadditionaltaxof20%whenthemattersconcernsaninheritancebyanheirwhoisnotafamilymember.Relief-Abasicexemptionof50millionyen.Anadditionalexemptionof10millionyenforeachheir.

2.6.InheritanceTax

2.7.GiftTax

ThebasisofthetaxforJapaneseresidents/foreignresidentsissimilartothatstatedaboveinregardtoinheritancetax.Theratesarebetween10%-50%anddependonthevalueoftheasset.Itshouldbepointedoutthatagiftgiventoanindividualbyacorporationissubjecttoincometaxandnottogifttax.Relief-Abasicexemptionof600,000yen.Anadditionalexemptionforawife(incertaininstances,thisexemptionmayreach20millionyen).

2.7.GiftTax

2.8.LandValueTax

ThistaxisimposedonbothindividualsandcorporationsinJapan.Thebasicrateis0.15%.Thereareexemptions,forinstance-aresidentialapartment.

2.8.LandValueTax

2.9.RealEstatePurchaseTaxThebasicrateis4%.Ifresidentialrealestateisinvolved,thetaxrateis3%.

2.9.RealEstatePurchaseTa2.10.Othertaxes

PropertyTaxMunicipaltaxpaidannuallybyindividualswhoownland,housingandothertypesofdepreciableassets.VehiclerelatedTaxesPrefecturalautomobiletaxispaidannuallybyindividualswhoownacar,truckorbus.Incaseofpassengercars,theamountiscalculatedbasedontheenginedisplacement.Amunicipallightvehicletaxispaidannuallybyindividualswhoownmotorbikesorothermotorizedlightvehicles.Anationalmotorvehicletonnagetaxispaidbyvehicleownersatthetimeofthemandatoryinspections(shaken).Aprefecturalautomobileacquisitiontaxispaidbypersonswhentheyacquireacar.2.10.OthertaxesLiquor,TobaccoandGasolineTaxesThenationalliquortaxispaidbyconsumerswhentheypurchasealcoholicbeverages.Thetaxratevariesaccordingtothetypeofliquor(sparkling,fermented,distilledandhybrid).National,prefecturalandmunicipaltobaccotaxesarepaidbyconsumerswhentheypurchasetobaccoproducts.Thetaxratevariesaccordingtothetypeoftobaccoproduct(e.g.cigarette,cigar,pipetobacco).Anationalgasolinetaxispaidbyconsumerswhentheypurchasegasoline.Theliquor,tobaccoandgasolinetaxesareincludedinthepricesshownbyshops.Liquor,TobaccoandGasolineT3.JapaneseSocialInsuranceAllemployeeslocallyhiredinJapanmustcontributetotheJapanesesocialsystem,including:

3.1JapanHealthInsuranceSystem,whichcoversallemployeesandtheirdependantsformedicalanddentalexpenses,athospitalsandclinicswhichoperateunderthesystem.3.2Worker'sCompensationInsurance,whichprotectsemployeesandtheirfamiliesfromhardshipsbroughtaboutbyinjury,sickness,disabilityorfatalitysufferedonthejob,orwhilecommutingtoandfromtheworkplace.3.JapaneseSocialInsurance3.3UnemploymentInsurance,whichprovidesassistancetoemployeeswholosetheirjobasaresultofinvoluntaryorvoluntarydismissal,corporaterestructuringorbankruptcy.Therateis1.15%ofthetaxableincome,including0.4%paidbytheemployeeand0.75%paidbythecompany.3.4NationalPensionInsurance,whichpreparesonesretirement.Therateis17.35%ofthetaxableincome,including8.675%paidbytheemployeeand8.675%paidbythecompany.3.3UnemploymentInsurance,whChapterVIITaxationinJapanAfterWorldWarII,Japanadoptedataxsystemrelyingmainlyondirecttaxes,likethoseintheUnitedStatesandtheUnitedKingdom.Themostimportantofthesearetheincometaxandcorporationtax.TheNationalTaxAdministrationAgency,abranchoftheMinistryofFinance,administersincomeandcorporationtaxlaws.Inaddition,theTaxSystemCouncilfilesrecommendationsforrevisionofthesystemeverythreeyears.Individualsaresubjecttoanationalincometaxaswellaslocal(prefecturalandmunicipal)residenceandbusinesstaxes.ChapterVIITaxationinJapaAdditionalnationaltaxesincludecustomsduties;a5%value-addedtax;astamptax;inheritanceandgifttaxes;amonopolyprofitstax;asugarexcisetax;taxesonliquor,gasoline,andothercommodities;andtravel,admissions,andlocalroadtaxes.Additionalnationaltaxesincl1.PrinciplesoftheJapaneseTaxSystemAtaxpayerinJapanisdefinedasanyonespendingmorethan6monthsinthefiscalyearonJapanesesoil,regardlessofnationality,residencestatus,employmentstatus,sourceofincomeandcurrentlocation(bank)ofincome.Ifyouhavespentlessthan6months(cumulated)inJapan,youneedtodeclareyourtaxesinthecountrywhereyouhavespent6monthsinthefiscalyear.1.PrinciplesoftheJapanese2.Maintaxes2.Maintaxes2.1.Corporateincometaxes2.1.1.CorporatestatusForthepurposeofJapanesecorporatetaxes,foreignenterprisesoperatinginJapanareclassifiedasdomesticcorporationandforeigncorporation.DomesticcorporationSubsidiaries,jointventures,etc.establishedundertheJapaneselawhavethisstatus,andareliableforthetaxesontheirentireincome.ForeigncorporationBranchesinJapanofcorporationsestablishedandregisteredoutsideJapanfallunderthisstatus.ThescopeoftaxableincomeforcorporateincometaxpurposesdiffersdependingonthemanneroftheiroperationinJapan,however,itislimitedtoincomefromsourceswithinJapan.《外國稅制》-chapter-VII課件2.1.2.NormalcorporateincometaxesJapanesecorporateincometaxesconsistofcorporationtax(nationaltax)undertheCorporationTaxLaw,andlocaltaxesundertheLocalTaxLaw,whicharebusinesstax(prefecturetax),prefecturalinhabitanttaxandmunicipalinhabitanttax.2.1.2.Normalcorporateincome

2.1.3.Taxrates

Note:(1)Asmallandmedium-sizedcompanyisacompanywhosepaid-incapitalisJPY100millionorless(2)15percentisappliedtofiscalyearsbeginningbetween1April2012and31March2015.(3)Notethata10-percentspecialreconstructioncorporationtaxwillbeimposedonthecorporationtaxliability2.1.3.TaxratesNote:(1)AsInadditiontocorporatetax(anationaltax)therearetwoclassesoflocaltaxpaidbythecorporation:

1)InhabitantTax.

2)EnterpriseTax.

ThesetwoclassesoflocaltaxsignificantlyincreasetherateofJapancorporatetax,sothatitmay,inactualfact,reachabout41%.Inadditiontocorporatetax(《外國稅制》-chapter-VII課件2.1.4.TaxableincomeofDomesticCorporations:Domesticcorporationsareliableforcorporateincometaxesonincomeforeachaccountingperiodattheratesasmentionedabove,andonliquidationincomeuponliquidation.Moreover,certaindomesticfamilycorporationsareliableforaspecialtaxonretainedearningsforeachaccountingperiod.Taxableincomerepresentsthenetofgrossrevenuelesscosts,expensesandlosses,nomatterwheretheyaccrue,calculatedingeneralinaccordancewithfairaccountingstandardsofJapanandinparticularasadjustedinaccordancewiththerequirementsofthetaxlawsofJapan.2.1.4.TaxableincomeofDomes2.1.5.

ForeigncorporationForeigncorporationsareliablefortaxesonincomederivedfromsourceswithinJapanonly.ThescopeoftaxableincomeandthemannerinwhichincometaxesarepayabledifferdependingonhowtheystandforJapanesetaxpurposes.2.1.5.Foreigncorporation2.1.6.FilingofreturnsandpaymentoftaxesCorporateincometaxreturnsarerequiredtobefiledwithintwomonthsaftertheendofeachaccountingperiodandtaxespaidthereon,unlessanextensionisappliedforandapprovedbythetaxoffice.Aone-monthextension.ifapplied,isautomaticallyapproved.Afinalreturnmustbeaccompaniedbyfinancialstatementsandsupportingschedules.Non-filingoffinancialreturnswillcauseanon-filingpenaltyof5or10percentandwillbeareasonforcancellationoftheblueformreturnfilingprivilege.2.1.6.Filingofreturnsandp2.1.7.

PrivilegesundertheblueformreturnsystemThissystemisintendedtoencouragetaxpayerstomaintainproperaccountingrecordsandapplytheretofairaccountingstandards.Privilegesforcorporationsfilingblueformreturnsincludethefollowing:a.Carryforwardoflossesforfivesucceedingyears.b.Carrybackoflossesforoneprecedingyear(notapplicabletobusinessandinhabitanttax)c.Nocorrectionofincomebythetaxauthoritieswithoutphysicalinspectionofthebooksandrecords.2.1.7.Privilegesunderthebld.Thetaxauthorities'obligationtostateareasonforcorrectionofincome(orloss)wherecorrectionismade.e.Establishmentofreserves.f.Specialdepreciation,whereapplicable.g.Taxcreditforincreaseinresearchanddevelopmentexpenses.d.Thetaxauthorities'obliga

2.2.

IndividualIncomeTax

2.2.1.IndividualincometaxesofJapanIndividualincometaxesofJapanconsistofnationalincometaxandlocalinhabitanttax.Moreover,thoseindividualswhoareoperatingcertainspecifiedbusinessesoftheirownatfixedplacesinJapanareliableforenterprisetaxassessablebyprefecturalgovernments.IncometaxispayableinaccordancewiththeIncomeTaxLaw,andthetaxableyearisthecalendaryear.Inhabitanttaxisassessedbytheprefecturalandmunicipalgovernments,onincomefortheprecedingyearinaccordancewiththeprovisionsoftheLocalTaxLaw.

2.2.IndividualIncomeTaxAnindividualpaystaxonhisincomeasawage-earnerorasaself-employedperson.Taxforanindividualwhomeetsthecriteriaofa"permanentresident"inJapanwillbecalculatedonhisincomeinJapanandabroad.AforeignresidentwhoisemployedinJapanpaystaxonlyonincomeearnedinJapan.Anindividualpaystaxonh2.2.2.TaxpayersinJapanaredividedin3differentgroupsforwhichtaxesareapplieddifferently.Resident:Apersonwhohasanaddress(domicile)inJapanandhasresidedcontinuouslyinJapanforoneyearormoreisregardedasaresident.NonPermanentResident:ApersonwhohasnointentionoflivingpermanentlyinJapanandwhohashadanaddress(domicile)orresidenceinJapancontinuouslyfornotmorethanfiveyearsisregardedasanonpermanentresident.Permanentresident:Allresidentotherthannon-permanentresidentsarepermanentresidents.Nonresident:Allindividualswhoarenotresidentsarenonresidents.2.2.2.TaxpayersinJapanareThewayJapaneseincometaxesareapplieddependonthetaxpayersituationgiveninthetablebelow.SourceofTaxableIncomeIncomefromSourcesinJapanIncomefromSourcesabroadPaidinJapanPaidAbroadPaidinJapanPaidAbroadNP:TaxableTaxableTaxableOnlytheportiondeemedremittedtoJapanistaxable.(thismeansthattheremainderretainedabroadisnottaxable.P:TaxableTaxableTaxableTaxableNR:InprincipletaxableNottaxableThewayJapaneseincometaxesEmployeesinJapan(Japanesenationalsandforeigners)havetheirtaxesautomaticallytakenout(bylaw)oftheirmonthlypaycheckbytheiremployer(thatisreferredasthewithholdingincometax),andtheamountofthesetaxesareusuallyabithigherthantherealincometaxrates.Attheendoftheyear,therealincometaxesarecalculated(referredasassessmentincometax)andthedifferencebetweenthewithholdingtaxandtheassessmenttaxisreturnedtothetaxpayer.EmployeesinJapan(JapanesenTaxpayerswhoareemployed(subjecttothewithholdingincometax)andwhohaveagrossincomeoflessthan20,000,000yensinthefiscalyeardonotneedtotofileanytaxreturnoranything,astheseareautomaticallydonebytheemployer.Forthoseluckyonesmakingm