Complete guide to Japanese income tax, resident tax, kakutei shinkoku filing, best tax software, and top Japanese accountants
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Understanding Japan's progressive income tax system, resident tax, and kakutei shinkoku filing for 2025
Japan uses a progressive tax system administered by the National Tax Agency (NTA):
Plus 2.1% reconstruction surtax until 2037
Japan's local tax paid to municipal and prefectural governments:
Resident tax is a flat 10% of taxable income plus a fixed amount, paid to your local municipality based on the previous year's income.
Japan's annual tax return process for final income calculation:
Required for self-employed, freelancers, those with multiple income sources, or employees with side income over ¥200,000.
Japan classifies individuals into three tax categories:
Permanent residents (5+ years) pay tax on worldwide income. Non-permanent residents pay tax on Japan income plus foreign income brought to Japan.
How taxes work for employed individuals in Japan:
Most employees have taxes automatically calculated through year-end adjustment, eliminating the need to file kakutei shinkoku unless they have additional income.
Japan's comprehensive social insurance system:
Social insurance premiums are split between employee and employer, providing healthcare, pension, and unemployment benefits.
Best tax preparation software for Japanese kakutei shinkoku filing
Price: Free
Best for: Online kakutei shinkoku filing
The official National Tax Agency's electronic tax filing system. Allows direct online submission of tax returns with automatic calculations. Requires MyNumber card or tax ID for authentication.
Key Features: Official NTA platform, automatic calculations, direct online filing, smartphone app available, pre-filled data integration.
Price: ¥9,600 - ¥39,800/year
Best for: Small business and freelancers
Comprehensive cloud-based accounting and tax software with strong automation features. Integrates with banks and credit cards for automatic transaction import and categorization.
Key Features: Bank integration, receipt scanning, business expense tracking, automatic categorization, multi-device access.
Price: ¥11,760 - ¥39,800/year
Best for: Individual freelancers and small businesses
User-friendly cloud accounting software designed for non-accountants. Features intuitive interface with guided workflows for tax return preparation and business accounting.
Key Features: Simple interface, guided setup, smartphone app, invoice creation, expense management, automatic tax calculations.
Price: ¥8,800 - ¥26,400/year
Best for: Traditional small business owners
Established Japanese accounting software with both desktop and cloud versions. Strong support for traditional Japanese business practices and comprehensive customer support in Japanese.
Key Features: Desktop/cloud options, comprehensive support, traditional interface, detailed tutorials, phone support available.
Price: ¥15,000 - ¥45,000/year
Best for: Professional services and complex returns
Professional-grade tax software used by many tax professionals and businesses with complex financial situations. Handles advanced tax scenarios and multiple entity types.
Key Features: Professional features, complex scenario handling, multi-entity support, advanced reporting, integration with professional accounting systems.
Affordable tax professionals and firms for Japanese tax compliance and planning
Specialization: Individual expats and middle-class residents
Services: Kakutei shinkoku filing, tax consulting, visa support, English-language service
Affordable tax service specializing in foreign residents and middle-income Japanese individuals. Fixed-fee pricing from ¥25,000 for simple returns, with English support available.
Specialization: International individuals and small businesses
Services: Personal tax returns, small business consulting, English-language support, international tax planning
English-speaking certified tax accountant with experience at major firms. Competitive rates for individuals (¥230,000 for expats with complex situations), specializing in international tax issues.
Specialization: Community-based tax services nationwide
Services: Individual kakutei shinkoku, small business support, local tax guidance, face-to-face consultations
Network of local certified tax accountants across Japan's cities and towns. Typical fees ¥30,000-¥80,000 for individual returns, with personalized local service.
Specialization: Digital tax services for working professionals
Services: Online kakutei shinkoku preparation, document review, tax optimization, mobile consultations
Modern online tax service targeting busy professionals and tech-savvy taxpayers. Starting from ¥20,000 for simple returns, with video consultations and digital document handling.
Specialization: Middle-income families and individual taxpayers
Services: Family tax planning, individual returns, inheritance basics, year-round tax advice
Certified tax accountants focusing on middle-class families and individuals. Competitive pricing ¥35,000-¥120,000 depending on complexity, with ongoing support throughout the year.
The accountants and firms listed above are provided for informational purposes only. CountryTaxCalc does not endorse any specific service provider and is not affiliated with these firms.
Professional fees, services, and expertise may vary. We recommend consulting multiple providers and verifying their credentials with relevant professional bodies before making any decisions.
Always ensure your chosen tax professional is appropriately licensed and registered with the Japanese Institute of Certified Public Accountants (JICPA) or certified as a zeirishi (tax accountant) in Japan.
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