Final tax return

1 Overview of final tax return

The income tax return is a process where a taxpayer calculates the amount of income generated during the year from January 1 to December 31 of each year and the amount of income tax, and adjusts the excess or deficiency if there is tax withheld at the source or estimated tax prepayment.

2 People who are required to file the final tax return

In principle, you must file a final tax return if your total income for the year exceeds the total amount of deduction from income and if the tax amount on the excess amount exceeds the sum of credit for dividends and special credit for loans, etc., received in the year-end adjustment.
However, you are not required to file a final tax return in certain cases if your salaries and wages are 20 million yen or less; if all your salaries that had been subjected to withholding are received from a single source; and if your total income (excluding employment and retirement income) is 200,000 yen.

In addition, a resident who earns miscellaneous income from public pension or other sources is not required to file a final tax return for the year after 2011, if the earnings from public pensions is four million yen or less and the amount of income other than miscellaneous income from public pension or other sources is 200,000 yen or less.
However, effective from 2015, those who receive payments of public pensions, etc., for which tax is not withheld at source are not eligible for the above provisions.

3 Types of final tax return form to be used

(1) Form A

Use this form if you only have employment income, miscellaneous income such as pensions, dividend income or occasional income, and do not have any estimated tax prepayment.

(Note) If average taxation on temporary income or fluctuating income can be applied, Form B should be used.

(2) Form B

This form can be used by anyone regardless of the type of income.

(Note) Those who have capital gains related to land or building, etc., or capital gains related to stocks and shares should use the Separate Taxation Form (Page 3), or alternatively the Case of Loss Form (Page 4) together with Form B in order to carry forward the amount of loss arising from the calculation of income for the year to the next year or later.