If you are working or exporting in the country of cherry blossoms, you need to know clearly about tax refund procedures in Japan.
This procedure can help you own a decent amount of money to cover your living expenses and send back to your family. Do you know which subjects are eligible for tax refund? Is the process and procedure simple and how does it work?
In today's article, Nhat Huy Khang will share with you information related to this issue, please follow along!
1. Subjects eligible for tax refund in Japan
Most of the subjects receiving tax refunds in Japan are foreign workers in Japan such as engineers, interns,...
Foreign workers in general and Vietnamese workers in particular, when going to Japan to work , must also perform the same mandatory obligations as real citizens here. One of them can be mentioned as the obligation to pay taxes or the obligation to participate in insurance, etc. This contributes to showing your sense of responsibility towards the host country. At the same time, they also help you be less disadvantaged, giving you many benefits and incentives.
However, due to the characteristics of foreign workers in Japan, they only work for a period of 3 - 5 years. After that, they ran out of visas and were forced to return to their country when their contract ended. Therefore, in terms of rights, workers will not enjoy full benefits like Japanese citizens.
Understanding this, the Japanese government has issued new tax laws related to the rights of Japanese workers . Accordingly, interns and workers who have completed their tax payment obligations during the working process, when the order ends and return to their home country, you will receive a partial refund of the tax amount.
In addition, foreigners who are international students, engineers or Japanese with a foreign spouse can also receive tax refunds. The condition to receive a tax refund is that you must have paid Japanese taxes for at least 6 months.
Tax refund occurs in cases where the requester is no longer living in Japan. This means that you can apply for a tax refund after returning to your home country. The total time to complete tax refund procedures in Japan is 2 months. If the above deadline is exceeded, the tax refund application will not be accepted, so you should consider it early.
2. Income taxes are refunded
Below are the income taxes that according to regulations, you will be refunded after returning home:
2.1. Tax refund for severance insurance
The tax refund for severance insurance is refundable when you have returned to your home country for at least 3 years and not more than 3 years.
According to tax refund regulations in Japan, those who receive a refund are engineers who go to Japan and have finished their insurance payment period. The tax refund period must be at least 3 months or more, and less than 2 years after the employee returns home.
The amount of insurance you get back is also quite good, at least 2,500 USD. The amount of this refund depends on the amount of money you paid while working in Japan. After returning from Japan, the sending company that sent you to export labor will guide you through the steps to complete the application. After that, you just need to send it to Japan to wait for the above payment.
2.2. Tax refund from tax deduction amount
Tax refund from tax deduction amount needs support from Japanese people living in Japan
Subjects receiving tax refunds are employees who have completed the procedures and sent them to Japan to receive insurance tax refunds. The mandatory procedure you need is the Tsuchisho paper. This amount is only paid when you have returned to your home country and for a period of less than 5 years. You can receive from 40,000 to 50,000 yen depending on the actual tax amount you paid in Japan.
In particular, you cannot do this tax refund on your own but must ask Japanese people living in Japan for support. Normally, you are advised to ask companies that provide this service to resolve the issue. Completion time can be from 2 - 3 months.
2.3. Tax refund of part of the tax paid during contract labor in Japan
A tax refund of part of the tax paid while working under a contract in Japan is also money you can receive back
During the time you are working in Japan, if you have never done any paperwork related to applying for tax exemption or reduction, you can carry out the tax refund procedure for part of the tax paid. This tax refund in Japan is only valid for interns who have returned home within the past 5 years. If you have entered Vietnam for more than 5 years, this amount will not be refunded.
The refund amount can be up to 70,000 - 140,000 yen, so don't miss it! They also depend on the amount of tax you pay monthly when implementing a labor contract. Note, the partial tax refund of paid taxes will only be repaid by the Japanese party when you have completed the above two items.
3. Process for applying for tax refund in Japan
The process of applying for a tax refund in Japan will depend on the tax department as well as the local administrative agency. In each place, you will receive different requirements regarding procedures and documents. To successfully apply for a tax refund, you can do it in the following two effective ways:
3.1. Thanks to the support of legal staff in the company and union
Legal officers in your company or union can guide you through the process more easily
By asking the legal staff in the company or union for guidance, you can easily go through it without any difficulty. The necessary documents that you need to prepare are a money transfer invoice, a photocopy of your relative's ID card/household registration, and the relative's declaration form.
3.2. Do your own tax declaration
The second way is that you can declare taxes yourself on the Internet by downloading the tax declaration. Then, you fill in the information yourself, print it out and send it to the tax department or go directly to the tax department to pay. At the tax departments, there will always be someone to guide you through the detailed procedures.
The normal application reception time is from mid-February to mid-March every year. Once you have completed the procedure, by around April, you will be able to receive your tax refund in Japan.
Necessary documents to bring when going through this procedure include: A declaration of the amount of money you have paid in taxes during your time working in Japan. Bank books and personal documents.
Above is an article sharing with you details on how to apply for a tax refund in Japan in the simplest, fastest and easiest way. Hopefully, this article has brought you a lot of useful information about procedures for receiving tax refunds.
This is also an opportunity for you to have a large amount of money to send to your relatives and family. Right now, please remember the above notes carefully to prepare well before completing your work and returning to your country.
So, thanks to the tax refunds, after returning home. The total cost of going to Japan you have to spend will be reduced somewhat. Hopefully, through this article, it has helped those of you who are wondering about this issue to be answered.
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