Overview

Monthly payment of resident tax (住民税) withheld from employee salaries (special collection (特別徴収)) to the municipality where each employee resides, due by the 10th of the following month. This is a local tax obligation separate from national withholding tax (源泉所得税).

Schedule

Every month on the 10th (or next business day)

Applicability

• Applicable to: Kabushiki Kaisha (KK), Godo Kaisha (GK), Individual
• Requires paying salaries

Authority

Filing Methods

Additional Details

Resident tax special collection (特別徴収) is the system where employers withhold resident tax (住民税) from employee salaries each month and remit it to the municipality of each employee's residence by the 10th of the following month. While national withholding tax (源泉所得税) is paid to the tax office, resident tax is a separate local tax paid to municipal offices. Around May each year, municipalities send a Notification of Special Collection Tax Amount (特別徴収税額の決定通知書), and payments are made in 12 installments from June (paid by July 10) through May of the following year (paid by June 10). The tax amount is calculated by the municipality based on the prior year's income, so employers do not need to compute the amount themselves. Businesses with fewer than 10 employees may apply for a special payment schedule (納期の特例) to pay semi-annually (June and December) instead of monthly.

Penalties for Non-Compliance

Failure to remit by the due date (10th of the following month) incurs delinquent charges (延滞金). If the special collection agent fails to remit resident tax withheld from employees, the agent is subject to delinquency disposition (滞納処分) including property seizure under Local Tax Law Article 324(3). Even if the employer fails to withhold resident tax from employee salaries, the employer remains liable for the tax as a designated special collection agent.

Legal Basis