top of page

Common Mistakes in Tax Return Filing in Japan

Writer: Mamiko YamamotoMamiko Yamamoto

Mistake

Correct Information

Impact

Failure to report all income

All income (salary, side jobs, real estate, cryptocurrency, etc.) must be properly declared

If underreporting is discovered, additional tax penalties may apply

Overstating deductible expenses

Only expenses directly related to the business are deductible

If disallowed in a tax audit, additional taxes and penalties may apply

Claiming both Furusato Nozei One-Stop Exemption and filing a tax return

If filing a tax return, Furusato Nozei should be reported within the return, not separately

The One-Stop Exemption becomes invalid

Miscalculating medical expense deductions

Health checkups and cosmetic treatments are not deductible. Insurance reimbursements must be deducted from eligible expenses

The deductible amount may be reduced

Forgetting to claim the first-year housing loan deduction

The housing loan deduction requires a tax return in the first year

Missing the claim results in financial loss

Errors in spousal or dependent deductions

The income of the spouse or dependent must be correctly calculated and meet eligibility criteria

Over-claimed deductions may be questioned by the tax office

Submitting an e-Tax return but failing to complete the process

Ensure the submission is successfully completed and check for the confirmation email

An incomplete submission may be treated as a failure to file, leading to penalties

Expecting a quick refund

Refund processing typically takes 1 to 1.5 months

Delayed refunds may cause unnecessary worry

Believing that missing the filing deadline is not a problem

Late filings may result in penalties such as additional tax or late payment fees

Unnecessary tax burdens may arise

Relying entirely on a tax accountant

The taxpayer is ultimately responsible for the accuracy of the tax return

Any errors could result in penalties for the taxpayer

And non resident can ask to refund too much withholing tax from your salary. You'd better consult your employer!



 
 
 

Comments


bottom of page