What is Juminzei (Resident Tax) and Nenkin (National Pension Plan)?
What is Juminzei?
Juminzei is the Resident-tax, and consists of two types of tax:
- Resident-tax for the city (i.e., Fuchu-city, Musashino-city) you live in.
- Resident-tax for the prefecture (i.e., TOKYO, KANAGAWA) you live in.
The tax rates may slightly differ depending on which city/prefecture you live in.
How it will be calculated?
It will be calculated on the basis of your previous year’s income in Japan.
You will not be required to pay for the first year if you lived abroad the previous year. You will be required to pay from the next January, the amount calculated on the basis of your annual gross income of the previous year. *Hence, you will be required to pay the resident tax.
You will be required to pay Juminzei to the city where you live on 1st January. Even if you move out on 2nd January to another city, you must pay the amount of Juminzei calculated based on the amount in the city where you lived on 1st January.
If you're a full-time lecturer teaching for TUFS as your main job, and having other part-time jobs for which you receive payment of more than 200,000.-JPY/year:
- Complete the "Year End Tax Adjustment" for your salary paid by TUFS
- Then bring your "annual payment slip" from TUFS and from other institutions to the tax authority between 15th Feb- 16th Mar.
- The total amount of your annual income will be calculated. The City Hall will calculate and make an announcement to TUFS about your resident tax for the next year. TUFS will divide that entire amount into 12 months for the deduction.
- TUFS starts deducting the resident tax from your monthly salary from June.
If you're a part-time lecturer, teaching for several institutions, you need to go to the tax authority between 15th Feb and 16th Mar, bringing all the annual payment slips issued by the institutions. Around May, you'll receive an envelope from the City Hall with resident tax invoices. You need to make the payments every 3 months.
What is Nenkin?
Nenkin is the National Pension Plan which is normally deducted from your monthly salary directly.
For foreigners living in Japan for more than 6 months, you will be entitled to apply for the refund of the National Pension Plan after you leave Japan. Your application form will be accepted within two years after you leave.
Please refer to the following URL for terms and conditions in details.
Japan Pension Service
Lump-sum Withdrawal Payments