Thorough Implementation of Special Collection of Individual Resident Tax

Under the provisions of the Local Tax Act, business operators (salary payers) who have the obligation to withhold Income Tax at the source are required, as special collection agents, to carry out special collection of Individual Resident Tax at the time of salary payment (deducting from employees' salaries and remitting to the ward or municipality).
The Tokyo Metropolitan Government and all 62 wards and municipalities in Tokyo will thoroughly implement special collection of individual resident tax from the fiscal year 2017.
Specifically, in the future, we will calculate the special collection tax amount for employees based on the submitted salary payment reports and notify you by the end of May. Based on this, deductions will be made from the salary every month (from June to May of the following year), and you will be required to pay it 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 Municipal Resident Tax from salary is a system in which business operators (payroll providers), on behalf of employees (taxpayers), deduct the Municipal Resident Tax from the salary paid to employees (taxpayers) each month and remit it. The Municipal Resident Tax must be paid to the municipality where the employee (taxpayer) resides as of January 1.

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. Also, since special collection is made 12 times a year, the amount of tax paid each time is smaller compared to ordinary collection.

In what cases does special collection apply?

If an employee (taxpayer) received salary payments during the previous year and is receiving salary payments as of April 1 of the current year, the Business Operator (payroll provider) is generally required to conduct special collection. In principle, special collection must be applied to all employees, including part-time workers, temporary staff, and executives. However, if the employee only receives salary payments for a period exceeding one month, special collection is not required.

Note: Even if the Salary Payment Report is submitted, there may be cases where special collection does not apply depending on the calculated tax amount, etc.

For those receiving salaries from multiple employers

With the thorough enforcement of special collection starting from FY2017, those receiving salaries from multiple employers will, in principle, have their Municipal Resident Tax specially collected from one employer only.
If you wish to have the tax amount on salaries other than your main salary collected by ordinary collection (payment by payment slip), please consult the Municipal Resident Tax Section, Taxation Division, Inagi City Hall.

Contact Information

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

Each municipality

General information about the taxation of individual resident tax

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