Residence Tax - leaving Japan in Jan 2022

I am finding this really confusing and would appreciate any clarification

- I am an employee of a company which deducts residence tax from my salary on a monthly basis
- planning to leave Japan before end Dec 2021 but there is a risk I may stay until January 2022
- under this situation, would I owe any Residence Tax for 2022 bearing in mind that I have already had deductions throughout 2021 from my salary

Residence tax is paid with a year delay. The residential taxes that are deducted from your salary from June 2021 through May 2022 are actually covering your 2020 taxes. So, if leave Japan in December 2021, then you still will have to pay the remaining tax for 2020 (the company may deduct them from your last salary or ask you to pay them yourself) as well as all the taxes for 2021 (you will have to pay them yourself). If you leave in January 2022 and still have income in January 2022, then you will also have to pay taxes for that month before leaving.

Inquire with your employer and the municipality for details.

Hi Uji,

Thank you for your reply.

To clarify:

1. If I leave at the end of December 2021 then the company will deduct a further 5 months of residence tax to cover my liability for 2020?
2. For 2021, am I already on the hook for the entire year's worth of residence tax or am I exempt if I leave before end of 2021?
3. If I stay until Jan 2022 then do I have to pay 2022 residence tax?

1. If I leave at the end of December 2021 then the company will deduct a further 5 months of residence tax to cover my liability for 2020?

Yes, I think that is how it works. Alternatively, they may ask you to pay the remaining months directly.

2. For 2021, am I already on the hook for the entire year's worth of residence tax or am I exempt if I leave before end of 2021?

You have to pay the taxes on your entire 2021 income. It has not been deducted from your salary yet.

3. If I stay until Jan 2022 then do I have to pay 2022 residence tax?

Only if you have any income in January 2022.

Ouch but thanks for clarifying :)

I don�ft know the finesses but financial you are much better off if you leave in December.

From my leaving I remember that I needed to go to the municipal office before. They gave me a bill for the taxes to be paid (was something like 400,000 yen, obviously depends on the personal income but it�fs not just a little bit). I went to a conbini and paid. Some days later I left and at the boarder told them that I was leaving permanently and they invalidated my residence card.

I actually returned shortly after on a tourist visa to finish off the removal, but that was pre Covid, when one could travel freely.