Local Tax Act

A municipality may not impose the per capita levy of municipal inhabitant tax on the following persons; provided, however, that this does not apply where a person listed in item (ii) conducts a profit-making business.

the State, tax-exempt incorporated administrative agencies, national university corporations, etc., the Japan Pension Service, the Japan Institute for Health Security, prefectures, municipalities, special wards, unions of local governments, property wards, special merger districts, local incorporated administrative agencies, port authorities under the provisions of the Port and Harbour Act, land improvement districts and federations of land improvement districts, flood prevention associations and federations of flood prevention associations, land readjustment associations, and the Management and Support Organization for Postal Savings, Postal Life Insurance and Post Offices Network;

the Japanese Red Cross Society, social welfare corporations, offenders rehabilitation corporations, religious corporations, incorporated educational institutions, corporations set forth in Article 152, paragraph (5) of the Private Schools Act, labor unions under the Labor Union Act, officials organizations, etc. that are corporations prescribed in Article 2, paragraph (5) of the Act on Granting of Juridical Personality to Officials Organizations, etc., fishing vessel insurance associations, fisheries credit fund associations, fishery mutual relief associations and federations of fishery mutual relief associations, credit guarantee associations, agricultural mutual relief associations and federations of agricultural mutual relief associations, federations of agricultural cooperatives (limited to those that establish hospitals or clinics falling under the public medical institutions prescribed in Article 31 of the Medical Care Act and that are specified by Cabinet Order), federations of small business associations, National Health Insurance Societies and Federations of National Health Insurance Associations, the Japan Health Insurance Association, health insurance societies and the National Federation of Health Insurance Societies, National Public Servants Mutual Aid Associations and the Federation of National Public Service Personnel Mutual Aid Associations, Local Public Servants Mutual Aid Associations, the National Federation of Mutual Aid Associations for Municipal Personnel, the Pension Fund Association for Local Government Officials, the Promotion and Mutual Aid Corporation for Private Schools of Japan, incorporated public interest associations or incorporated public interest foundations whose principal purpose is to establish a museum under Article 2, paragraph (1) of the Museum Act or that have as their purpose academic research, and political parties, etc. that are corporations prescribed in Article 7-2, paragraph (1) of the Act on Granting of Juridical Personality to Political Party Receiving Political Party Grants.

A municipality may not impose the corporation tax levy of municipal inhabitant tax on the persons listed in the items of the preceding paragraph; provided, however, that this does not apply where a person listed in item (ii) of that paragraph conducts a profit-making business or undertakes a trust subject to corporate taxation.

The scope of the profit-making businesses referred to in the preceding two paragraphs is specified by Cabinet Order.

A municipal tax collection official may, where necessary for an examination concerning the assessment and collection of municipal inhabitant tax, question the following persons, or inspect the books and documents relating to the business of the persons listed in items (i) to (iii) (including, where electronic or magnetic records (meaning records made in electronic form, magnetic form or any other form not perceivable by human senses and used for information processing by a computer) have been created or retained in lieu of the creation or retention of those books and documents, those electronic or magnetic records; the same applies in paragraph (1), items (i) and (ii) of the following Article) and other articles, or request the presentation or submission of those articles (including copies thereof).

a person liable for tax or a person found to have tax liability;

a person found to be under an obligation to provide money or goods to a person prescribed in the preceding item;

a person who is under an obligation to submit a salary payment report, and a special collection agent;

a person, other than those listed in the preceding three items, who is found to be directly related to the assessment and collection of that municipal inhabitant tax.

In the case referred to in the preceding paragraph, the tax collection official in question must carry an identification card certifying the official's status and present it when requested by a person concerned.

A municipal tax collection official may, as provided by Cabinet Order, retain the articles submitted pursuant to the provisions of paragraph (1).

With regard to an investigation concerning the delinquent tax collection procedure relating to municipal inhabitant tax, notwithstanding paragraph (1), the matter is as provided in Article 331, paragraph (6).

The authority of a municipal tax collection official under the provisions of paragraph (1) or (3) must not be construed as having been granted for the purpose of criminal investigation.

In a case that falls under any of the following items, the person who committed the violation is to be punished by imprisonment for not more than one year or a fine of not more than 500,000 yen:

if the person refuses, obstructs or evades an inspection of books, documents or other articles under the provisions of the preceding Article;

if the person, without justifiable grounds, fails to comply with a request to present or submit articles under the provisions of paragraph (1) of the preceding Article, or presents or submits books, documents or other articles (including copies thereof) containing false entries or records;

if the person fails to answer questions put by a tax collection official under the provisions of the preceding Article, or gives a false answer.

Where a representative of a corporation (including an association or foundation that is not a corporation and for which a representative or administrator is provided (excluding an association or foundation without juridical personality; hereinafter referred to as "other associations, etc." in this paragraph); the same applies hereinafter in this paragraph, Article 317-7, paragraph (2), Article 324, paragraphs (7) and (8), Article 328-16, paragraphs (4) and (5), Article 332, paragraph (4), Article 332-2, paragraph (2) and Article 333, paragraph (2)) (including an administrator of an association or foundation without juridical personality and a representative or administrator of other associations, etc.; the same applies in Article 317-7, paragraph (2), Article 324, paragraph (7), Article 328-16, paragraph (4), Article 332, paragraph (4), Article 332-2, paragraph (2) and Article 333, paragraph (2)), or an agent, employee or other worker of a corporation or person has committed the violation referred to in paragraph (1) in connection with the business or property of that corporation or person, in addition to punishing the offender, the fine prescribed in that paragraph is imposed on that corporation or person.

Where the provisions of the preceding paragraph apply to an association or foundation that is not a corporation and for which a representative or administrator is provided, that representative or administrator represents that association or foundation in its procedural acts, and the provisions of laws on criminal proceedings applicable where a corporation is the defendant or suspect apply mutatis mutandis.

If a person liable for municipal inhabitant tax has no domicile, residence, office, place of business or dormitory, etc. in the municipality in which the person has a tax liability, the person must, in order to have all matters relating to tax payment handled, designate a tax agent from among persons who have a domicile, residence, office or place of business within the area specified by the Municipal Ordinance of that municipality and report this to the mayor of the municipality, or apply to the mayor of the municipality for, and obtain, approval to designate as a tax agent a person who has a domicile, residence, office or place of business outside that area and who is in a convenient position to handle those matters. The same applies where the tax agent is changed or is to be changed.

Notwithstanding the preceding paragraph, the person liable for tax is not required to designate a tax agent if the person has applied to the mayor of the municipality for, and received, certification that there is no hindrance to securing the collection of the municipal inhabitant tax pertaining to that person liable for tax.

If a person makes a false report concerning a tax agent to be reported under the provisions of paragraph (1) of the preceding Article, or obtains the approval under that paragraph or the certification under paragraph (2) of that Article by deceit or other wrongful means, the person who committed the violation is to be punished by a fine of not more than 300,000 yen.

Where a representative of a corporation (including an administrator of an association or foundation without juridical personality) or an agent, employee or other worker of a corporation or person has committed the violation referred to in the preceding paragraph in connection with the business or property of that corporation or person, in addition to punishing the offender, the penalty prescribed in that paragraph is imposed on that corporation or person.

Where the provisions of the preceding paragraph apply to an association or foundation without juridical personality, in addition to the representative or administrator of the association or foundation without juridical personality representing it in its procedural acts, the provisions of laws and regulations concerning criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

If a person liable for municipal inhabitant tax who has not received the certification under Article 300, paragraph (2) and has not received the approval under paragraph (1) of that Article fails, without justifiable grounds, to report the tax agent who is to be reported under that paragraph, a municipality may establish a provision in the Municipal Ordinance of that municipality imposing a non-penal fine of not more than 100,000 yen on that person.

The standard tax rate of the individual per capita levy is 3,000 yen.

Where a person liable for municipal inhabitant tax falls under any of the persons listed in the following items, a municipality may reduce the amount of the per capita levy imposed on that person, as provided by the Municipal Ordinance of that municipality.

a spouse in the same household or dependent who has an obligation to pay the per capita levy (limited to persons under 16 years of age and claimable dependents prescribed in Article 314-2, paragraph (1), item (xi));

a person who has two or more persons listed in the preceding item.