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Working in Japan is a big opportunity, but part of living and working here is understanding your tax responsibilities. Para sa maraming OFWs, confusing ang Japanese tax system at first—especially kung hindi familiar sa Japanese terms, payslip deductions, at city hall notices.

This guide will help you understand the basic taxes that may apply to Filipino workers in Japan.

1. Income Tax: Buwis sa Sahod

Ang income tax ay tax na binabawas mula sa kinikita mo. Kung employed ka sa company, kadalasan ay automatic itong kinakaltas sa monthly salary mo through withholding tax.

The amount depends on your income, deductions, and tax status. Japan’s tax year generally follows the calendar year, from January 1 to December 31.

2. Resident Tax: Buwis sa City or Municipality

Bukod sa income tax, may tinatawag ding resident tax or juminzei. Ito ay binabayaran sa local government kung saan ka nakatira.

Usually, resident tax is based on your income from the previous year. Kaya minsan nagugulat ang mga foreign workers dahil may bill silang matatanggap the following year, even if nagbago na ang trabaho or income nila. Tokyo Metropolitan Government provides tax information for foreign residents through its official tax portal.

3. Year-End Adjustment: Nenmatsu Chosei

Kung employee ka, your company usually handles your year-end tax adjustment or nenmatsu chosei. This process checks whether the correct amount of income tax was deducted from your salary during the year.

If sobra ang na-deduct, you may receive a refund. If kulang naman, additional tax may be collected.

During this period, HR may ask you to submit forms related to dependents, insurance, or other deductions.

4. Final Tax Return: Kakutei Shinkoku

Some employees may need to file a final tax return, called kakutei shinkoku. This may apply if you have additional income, changed jobs, medical expense deductions, or other special tax situations.

The National Tax Agency provides information on final tax returns and who may be required to file.

5. Common Salary Deductions

Kapag tiningnan mo ang payslip mo, hindi lang tax ang makikita mong deduction. Usually kasama rin ang :

• Income Tax

• Resident Tax

• Health Insurance

• Pension

• Employment Insurance

• Other company-related deductions, if applicable

Because of these deductions, your net salary or take-home pay is lower than your gross salary.

6. Dependents and Possible Deductions

If you financially support qualified dependents, this may affect your tax calculation. For OFWs, this is important because many support family members in the Philippines.

Make sure to ask your employer or tax office what documents are needed, especially if your dependents live outside Japan.

7. Keep Important Documents

Always keep copies of important tax and income documents, such as :

• Payslips

• Withholding tax slip / Gensen Choshu Hyo

• Residence tax notices

• Insurance documents

• Remittance records

• Documents related to dependents

These may be useful during year-end adjustment, tax filing, visa renewal, loan applications, or future financial planning.

8. What Happens If You Leave Japan?

If you plan to return to the Philippines or move to another country, check your tax obligations before leaving Japan. You may still need to settle unpaid resident tax or appoint a tax representative depending on your situation.

It is best to confirm with your city office, employer, or tax office before your departure.

9. Tips for OFWs in Japan

• Check your payslip every month.

• Ask HR if you do not understand your deductions.

• Keep all tax-related documents.

• Do not ignore letters from city hall or tax office.

• Prepare for resident tax payments.

• Ask for help from official offices or qualified professionals if your tax situation is complicated.

Understanding taxes in Japan may feel difficult at first, but knowing the basics can help you manage your salary better and avoid unexpected payments.

As an OFW, every yen matters. By understanding your income tax, resident tax, salary deductions, and filing responsibilities, you can plan your budget wisely and support your family with more confidence.

At PhilMoney, we believe that financial knowledge is part of every OFW’s journey. Through helpful guides like this, we aim to support Filipinos in Japan not only in sending money home, but also in making informed financial decisions for a better future.

Note : This article is intended for general information only. Regulations and procedures in Japan and the Philippines may change. Please verify the latest information with the appropriate government agency or official institution before taking action.