Saturday, March 22, 2014

Some useful tips for Expats on Filing Taxes in Tokyo




Filing Taxes in Japan is an excruciating experience. Not that the rules are that complicated, but it's amazing that the entire process, including the forms and instructions are completely in Japanese. Despite my affinity to numbers and sufficient accounting expertise, I have never found myself so confused, dazed and lost, in my life :)

Understandably so, since only 1.5% of the population (~2.03 million) is foreigners. And I am guessing 2/3rd of them are quite capable of reading and writing in Japanese (kanji and kana).

For the rest of us, it's quite a struggle. And I wish the tax office was a bit more considerate, especially when immigration is crucial for a country like Japan, where the workforce is shrinking.

The first time when you step into your local tax office, it's an alienating experience. There are no signs or instructions in English. Nice thing about Japan is, that people are really nice. The friendly staff escorted me to a tax consultant, Nozaki-san, an elderly gentleman, the only person in the entire office, who could speak English. It took us 10-15 mins to establish the baseline expectation of our communication abilities, and another 30-40 to review and complete my forms. Then he filled up my payment slip and guided me to the cashier to pay my taxes. I am glad Japan uses the same number system!

Anyways, meanwhile, here are some tips based on this experience: