Thorough Implementation of Special Collection of Individual Resident Tax

According to the provisions of the Local Tax Act, business operators (employers) who are obligated to withhold Income Tax are required to carry out special collection of Municipal Resident Tax as special collectors at the time of salary payment (deducting from employees' salaries and paying to the respective municipalities).
Starting from the fiscal year 2017, Tokyo and all 62 municipalities within Tokyo will thoroughly implement the special collection of Municipal Resident Tax.
Specifically, based on the submitted salary payment reports, we will calculate the special collection tax amount for employees and notify them by the end of May, so that deductions will be made from salaries every month (from June to the following May) and paid to our ward (municipality) by the 10th of the following month.

Frequently Asked Questions

What is Individual Resident Tax?

This is the cost necessary for administrative services provided to residents by the Tokyo Metropolitan Government and local municipalities, which is broadly shared by the residents. Generally, the "Individual Tokyo Metropolitan Resident Tax" and the "Individual Municipal Resident Tax" are collectively referred to as "Individual Resident Tax." The Individual Resident Tax consists of the "Income Tax" based on the previous year's income amount and the "Fixed Tax" which is taxed at a flat rate. The Individual Resident Tax is assessed and collected by the municipality where the employee (taxpayer) resides as of January 1.

What is special collection from salary?

Special collection of individual resident tax from salary is a system where the business operator (salary payer) deducts individual resident tax from the salary paid to the employee (taxpayer) every month, on behalf of the employee (taxpayer), similar to withholding of income tax. Individual resident tax is to be paid to the municipality where the employee (taxpayer) resides as of January 1st.

What are the benefits of special collection?

1. Business operators (payroll providers) do not have to calculate the amount of Municipal Resident Tax, as this is done by the local government. Therefore, unlike Income Tax, business operators (payroll providers) do not have to go through the trouble of calculating the tax amount or performing year-end adjustments.
2. Employees (taxpayers) do not have to worry about forgetting to make payments. Additionally, special collection has a payment deadline of 12 times a year, so the amount of tax paid per time is smaller compared to regular collection.

In what cases does special collection apply?

If an employee (taxpayer) has received salary payments during the previous year and is also receiving salary payments as of April 1 of the current year, the business operator (salary payer) is generally required to withhold taxes. Additionally, as a general rule, special withholding is necessary for all employees, including part-time workers, temporary workers, and executives. However, if the employee is only receiving salary payments that are determined based on a payment period exceeding one month, special withholding is not required.

Note: Even if a salary payment report is submitted, there may be cases where special collection does not occur depending on the calculated tax amount, etc.

For those receiving salaries from multiple employers

With the thorough implementation of special collection starting from the fiscal year 2017, individuals receiving salaries from multiple businesses will, in principle, have special collection conducted from one business only.
For those who wish to have the tax amount for salaries other than the main salary collected through ordinary collection (payment slip), please consult the Taxation Division of Inagi City Hall.

Contact Information

Regarding the taxation methods, procedures related to special collection, and specific taxation details

Each City, Ward, and Town

General information about the taxation of individual resident tax

• Tokyo Metropolitan Government Tax Bureau Special Collection Promotion Station(External Link)