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Obon Holiday Period36 days left
Residence Tax (2nd)54 days left

EasyNihon Tax Shield

Legal strategies to optimize your taxes in Japan. Don't overpay the NTA.

The 5-Year Rule

Japan taxes foreigners differently based on how long they have lived here. The "5-Year Mark" is critical for your crypto and foreign investments.

Official NTA Residency Guide

Enter your details to see tax liability.

⚠️ Disclaimer: This tool provides estimates for educational purposes only. Tax laws change frequently. Always consult a licensed tax professional (税理士) or your local tax office for advice specific to your situation.

Frequently Asked Questions

Commonly overlooked tax deductions for foreigners in Japan include: medical expenses exceeding ¥100,000 per year, overseas dependent deductions with proper documentation, iDeCo private pension contributions which are fully deductible, earthquake insurance premiums (jishin hoken ryou koujo), and donations to qualified organizations including furusato nozei hometown tax. Many foreigners also miss claiming social insurance premiums paid in their home country under bilateral agreements.
Yes, medical expenses exceeding ¥100,000 per year (or 5% of your total net income if that amount is lower) are deductible from your taxable income through the iryo hi koujo system. Eligible expenses include hospital and clinic fees, prescription drug costs, dentist bills, transportation costs to receive necessary medical care, and some caregiver support costs. Keep all receipts and use this tax shield calculator to determine the optimal combination of medical deductions for your situation.
Through the furusato nozei system, you make a donation to a rural municipality and in return receive local specialty products valued at roughly 30% of your donation amount, while the donation amount minus ¥2,000 is deducted directly from your tax bill. The net result is that you pay ¥2,000 out of pocket and receive gifts worth far more than that, effectively making furusato nozei one of the highest-returning tax shield strategies available to anyone paying residence tax in Japan.
Yes, foreigners who own a home in Japan, have a housing loan on it, and live in it as their primary residence qualify for the jutaku roan koujo (mortgage tax deduction). The deduction equals 0.7% of your outstanding mortgage balance at year-end, applied for up to 13 years on new construction. This is one of the most valuable tax shield tools available in Japan and can reduce your annual tax bill by hundreds of thousands of yen.
To claim an overseas dependent deduction on your Japanese tax return, you must submit: official proof of family relationship (such as a birth certificate or family registry with certified Japanese translation), proof of remittances made to support the dependent (bank transfer records showing amounts and dates), and in some cases the dependent's foreign residence certificate. All foreign documents must be accompanied by Japanese translations. Claim the deduction on your tax return or submit the documentation to your employer during the year-end nenmatsu chosei process.

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