Taxes
Resident tax (for both the city and the prefecture)
All residents of Onomichi, regardless of nationality, are required to pay Hiroshima prefecture and local municipal resident taxes. Each government office calculates tax amounts starting in April on the basis of income for the preceding year. Notifications are sent by mail.
People required to pay city resident taxes
People in the following categories are required to pay special city resident taxes.
- People residing in Onomichi City as of January 1 and people who had an income over a fixed level during the preceding year
- People who, though not residents, own offices, a workplace or real estate in Onomichi City as of January 1
People exempt from city resident taxes
People in the following categories are exempt from filing special city resident taxes:
- People living on welfare assistance
- The disabled, the underage, or widows whose total income for the preceding year falls below a fixed level
- People whose total income for the preceding year falls below a fixed level
People living under economic hardships caused by accident or natural disaster may apply for tax exemption. For details, please consult the Resident Taxation Department at city hall. (TEL: 0848-25-7154)
Payment of resident taxes
Regular collection: With this method of payment, an individual pays the tax in four installments using the notification and invoices sent by city hall. Payment locations are city hall, branch offices or financial institutions such as banks and post offices. Onomichi City will transfer part of these remittances and transfer the other part to the prefecture on your behalf.
Special collection: If you are a salaried income earner, such as a company employee, the employer deducts the tax from the monthly salary and pays city hall on behalf of the taxpayer. (In some cases, salaried employees must pay taxes by regular collection.) Again, this method covers both the city and the prefecture's resident taxes.
Change of domicile, retirement or leaving Japan
Change of domicile, retirement and return to homeland after January 2 do not exempt people from paying taxes on incomes for the preceding year. Since resident tax is calculated on income for the preceding year and is therefore deferred payment, tax notifications will be issued even to people who have changed addresses, retired from work or returned to their homelands.
To expedite the handling of taxation affairs, before leaving Japan for home, appoint a tax agent and report the appointment to city hall. If a tax agent is not appointed, then all the remaining taxes must be paid before leaving Japan.
