Ceasing your tax residency in Japan can be a significant step, often tied to major life changes such as moving abroad or changing your primary domicile. This guide will walk you through the necessary steps to ensure you comply with Japanese tax laws and responsibilities.
Step 1: Notify the Local Municipal Office
Visit your local municipal office and inform them of your intention to cease your tax residency in Japan. Submit a moving-out notification (転出届, tenshutsu todoke), which is required to deregister your residence status. This should be done before you leave Japan.
Step 2: Settle Local Taxes
Ensure all outstanding local taxes, such as inhabitant tax (住民税, juminzei), are fully paid. Contact your local tax office to confirm your tax liabilities and settle any dues. This is crucial as outstanding taxes can complicate your departure process.
Step 3: File a Final Tax Return
Submit a final tax return (確定申告, kakutei shinkoku) to the tax office that has jurisdiction over your residence. This return should cover the period from January 1st of the current year to the date of your departure. Make sure to declare all income earned during this period.
Step 4: Cancel Your Health Insurance and Pension
If you are enrolled in the National Health Insurance (国民健康保険, Kokumin Kenkō Hoken) and the National Pension system (国民年金, Kokumin Nenkin), notify the relevant offices of your departure. Submit the necessary forms to terminate your enrollment and ensure all contributions are up to date.
Step 5: Close Your Bank Accounts and Settle Utilities
Close any Japanese bank accounts you hold and ensure that all utilities such as electricity, gas, and water are settled. It is advisable to keep at least one bank account open until all financial matters are resolved.
Step 6: De-register with the Immigration Office
If you are a foreign national, inform the immigration office of your intention to leave Japan and de-register your residence card. This is a mandatory step to complete your departure process legally.
Legal References
- Income Tax Act of Japan (所得税法)
- Local Tax Act (地方税法)
- Health Insurance Act (健康保険法)
- National Pension Act (国民年金法)
- Immigration Control and Refugee Recognition Act (出入国管理及び難民認定法)
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