Common Japanese Tax Issues Explained by Japan Tax Advisors: A Practical Guide
Navigating the intricacies of the Japanese tax system can prove to be quite difficult, particularly for individuals and businesses that are not well-versed in local regulations. A tax advisor in Japan is essential in assisting taxpayers to comprehend and effectively manage their obligations. This comprehensive Guide to Japanese Taxes matters as explained by experts, providing insights to help you avoid potential pitfalls. Understanding Income Tax Deductions and Thresholds One of the most common inquiries pertains to personal income tax deductions. Recent reforms in 2025 have raised the basic deduction limit from ¥480,000 to ¥580,000 for individuals with earnings up to ¥23.5 million. This adjustment aims to alleviate the tax burden in light of inflationary pressures. • The annual income threshold for taxation has increased from ¥1.03 million to ¥1.6 million. • Special deductions have been introduced for dependents aged 19 to 22. • Employment income deductions have also...