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Taxes in Japan

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There are also different types of taxes being paid in Japan and here are some of the most common ones.

The income tax, also known as residence tax for some, is the tax that is dependent on the person having work, it may be high for people with high salaries, or low for those who does not earn that big. It can be paid in natural, prefectural or municipal level.

Next is the Enterprise Tax, unlike for the employees, this specific tax is paid by people who have their own business, the percentage to be paid is also dependent on the income their business is earning, as well as the type of business. It is a type of prefectural tax.

Next is the Property Tax, which is somewhat self-explanatory, it is taxes paid by those who owns a property or a land.

The consumption tax comes next, these are taxes that are added to goods and services, and from 8%, it is projected to increase to 10% in the October of 2015.

Next does the Vehicle related taxes which are being paid by those own an automobile. Different cars correspond to different taxes and when initially owning an automobile, a prefectural automobile acquisition is to be paid too.

For those who are drinking and having fun buying alcoholic beverage, a certain tax are being paid as well. This is grouped together with the tobacco and the gasoline tax and is shown on the receipt issued by the shops.

As for classification or variation of the people paying the taxes, it is divided into three, the resident, non-resident and the permanent ones. For the non-resident, a person is classified to be one when he had lived in Japan not more than a year, and his main business or line of work does not reside in Japan. In case he have multiple business both in Japan and abroad, those income coming from Japan are the only ones getting taxed and the one from abroad stays as it is, no tax deductions. For the non-permanent resident, the duration is now less than 5 years, same tax rules apply, however, those income from abroad that gets send to Japan will be taxed as well, even if the main income came from a different country. And lastly is the permanent resident, the duration is now 5 years or more, or those who plan to live at Japan for good. This people gets taxed  both from income inside Japan and income coming from abroad.

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