Local Tax Act

A person who pays salary as of January 1 (including an association or foundation that is not a corporation and has a designated representative or administrator; the same applies hereinafter in this Section) and who is obligated, when paying that salary, to collect income tax under Article 183 of the Income Tax Act must, by January 31, as provided by Order of the Ministry of Internal Affairs and Communications, state the amount of salary income for the previous year and other necessary matters concerning each person who receives that salary in a salary payment report prepared separately for each municipality in which that person has a domicile as of January 1, and submit it to the mayor of that municipality.

A person who is obligated to submit a salary payment report under the preceding paragraph must, where, among the persons who receive salary stated in the salary payment report submitted to the mayor of a municipality under that paragraph, there is any who no longer receives salary as of April 1, submit to that mayor, by April 15, as provided by Order of the Ministry of Internal Affairs and Communications, a written notification stating that fact.

In addition to what is provided in the preceding two paragraphs, a person who pays salary and is obligated, when paying that salary, to collect income tax under Article 183 of the Income Tax Act must, where there is any person among those who receive that salary who no longer receives salary, by January 31 of the year following the year that includes the day on which the person no longer received salary, as provided by Order of the Ministry of Internal Affairs and Communications, state the amount of salary income for the year that includes the day on which the person no longer received salary and other necessary matters concerning that person who no longer received salary in a salary payment report prepared separately for each municipality in which that person had a domicile as of the day on which the person no longer received salary, and submit it to the mayor of that municipality; provided, however, that this does not apply to a person for whom the total amount of salary received from the person paying that salary in the year that includes the day on which the person no longer received salary is 300,000 yen or less.

A person who pays public pension, etc. as of January 1 and who is obligated, when paying that public pension, etc., to collect income tax under Article 203-2 of the Income Tax Act must, by January 31, as provided by Order of the Ministry of Internal Affairs and Communications, state the amount of public pension, etc. paid for the previous year and other necessary matters concerning each person who receives that public pension, etc. in a public pension payment report prepared separately for each municipality in which that person has a domicile as of January 1, and submit it to the mayor of that municipality.

A person who is obligated to submit a salary payment report under paragraph (1) or (3) and to whom Article 228-4, paragraph (1) of the Income Tax Act applies in respect of the withholding receipt prescribed in Article 226, paragraph (1) of that Act in the year that includes the deadline for filing that salary payment report must, notwithstanding paragraph (1) or (3), provide the matters prescribed in those provisions that are to be stated in that salary payment report (referred to as "particulars of the salary payment report" in item (ii) and paragraph (7)) to the mayor of the municipality prescribed in paragraph (1) or (3) by any of the following methods:

a method of using, as provided by Order of the Ministry of Internal Affairs and Communications, the electronic data processing system for local tax procedures (meaning the electronic data processing system for local tax procedures prescribed in Article 762, item (i); the same applies hereinafter in this Section) and passing through the Local Tax Joint Organization (referred to as "the Organization" in this Section);

a method of submitting an optical disc or other recording medium specified by Order of the Ministry of Internal Affairs and Communications (referred to as an "optical disc, etc." in this Article) on which the particulars of the salary payment report have been recorded as provided by Order of the Ministry of Internal Affairs and Communications.

A person who is obligated to submit a public pension payment report under paragraph (4) and to whom Article 228-4, paragraph (1) of the Income Tax Act applies in respect of the withholding receipt prescribed in Article 226, paragraph (3) of that Act in the year that includes the deadline for filing that public pension payment report must, notwithstanding paragraph (4), provide the matters prescribed in that paragraph that are to be stated in that public pension payment report (referred to as "particulars of a public pension payment report" in item (ii) and the following paragraph) to the mayor of the municipality prescribed in paragraph (4), by any of the following methods in the case of a person who pays the old age, etc. pension benefit prescribed in Article 321-7-2, paragraph (1), or by either the method set forth in item (i) or the method set forth in item (ii) in the case of a person who pays any other public pension, etc.:

a method of using, as provided by Order of the Ministry of Internal Affairs and Communications, the electronic data processing system for local tax procedures and passing through the Organization;

a method of submitting an optical disc, etc. on which the particulars of a public pension payment report have been recorded as provided by Order of the Ministry of Internal Affairs and Communications;

in addition to the method set forth in item (i), a method passing through the Organization that is specified by Order of the Ministry of Internal Affairs and Communications.

A person who is to submit a salary payment report or a public pension payment report (hereinafter in this paragraph and the following paragraph referred to as a "report") under paragraph (1), (3) or (4) (excluding a person to whom the preceding two paragraphs apply) may submit, in lieu of submitting that report, an optical disc, etc. on which the particulars of the salary payment report or the particulars of the public pension payment report of the report that the person is to submit (referred to as the "required particulars" in the following paragraph and paragraph (9)) have been recorded.

With regard to the provision of required particulars made pursuant to paragraph (5) or (6) and the submission of an optical disc, etc. made pursuant to the preceding paragraph, Article 45-2, paragraph (2), Article 317-2, paragraph (2), paragraphs (1) through (4) of this Article, the following Article and Article 321-4, paragraph (3) apply by deeming that a report was submitted under paragraph (1), (3) or (4).

The provision of required particulars made pursuant to paragraph (5) (limited to the part relating to item (i)) or paragraph (6) (limited to the part relating to item (i)) is deemed to have reached the mayor of the municipality prescribed in paragraph (5) or (6) at the time when the matters are recorded in a file kept on a computer (including input-output devices; the same applies in Article 321-4, paragraph (11) and Article 321-8, paragraph (65)) used by the Organization referred to in Article 762, item (i).

Where a person has failed to submit a salary payment report, written notification or public pension payment report that is to be submitted under paragraphs (1) through (4) of the preceding Article, or has submitted a salary payment report, written notification or public pension payment report containing a false statement, 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.

Where the representative of a corporation, or the agent, employee or other worker of a corporation or person, has committed a violation referred to in the preceding paragraph in connection with the business of that corporation or person, the fine prescribed in that paragraph is also imposed on that corporation or person, in addition to punishing the offender.

When the preceding paragraph applies to an association or foundation that is not a corporation and has a designated representative or administrator, that representative or administrator represents that association or foundation that is not a corporation and has a designated representative or administrator in its procedural acts, and in addition, the provisions of laws and regulations on criminal proceedings in the case where a corporation is the defendant or suspect apply mutatis mutandis.

The assessment date for individual municipal inhabitant tax is January 1 of the year that includes the first day of the fiscal year in question.

The collection of individual municipal inhabitant tax must be carried out by the method of ordinary collection, except where it is carried out by the method of special collection under Article 321-3, Article 321-7-2, paragraph (1) or (2), Article 321-7-8, paragraph (1) or Article 328-4.

When a municipality assesses and collects individual municipal inhabitant tax, it is to assess and collect the individual prefectural inhabitant tax and the forest environment tax of the individual concerned together with it, except as otherwise specially provided in this Act or the Act on the Forest Environment Tax and the Forest Environment Transfer Tax.

A tax notice delivered to a taxpayer where individual municipal inhabitant tax is to be collected by the method of ordinary collection must state the amount obtained by deducting, from the total of the income levy amount and the per capita levy amount, the total of the amount of tax specially collected on salary income under Article 321-4, paragraph (1) (or the total thereof where the tax is collected by two or more special collection agents; the same applies in the following paragraph), the special collection tax amount on pension income under Article 321-7-4, paragraph (1) and the provisional special collection tax amount on pension income under Article 321-7-8, paragraph (1), together with the basis for calculating them.

The tax notice under the preceding paragraph relating to a taxpayer from whom individual municipal inhabitant tax is to be collected by the method of special collection must also state, in the case where the individual municipal inhabitant tax is no longer to be collected from that taxpayer by the method of special collection because, for example, the taxpayer has ceased to receive salary or the pension benefit subject to special collection prescribed in Article 321-7-4, paragraph (2) in the course of the fiscal year, that, of the amount of tax specially collected on salary income under Article 321-4, paragraph (1), the special collection tax amount on pension income under Article 321-7-4, paragraph (1) and the provisional special collection tax amount on pension income under Article 321-7-8, paragraph (1), the amount that is no longer to be collected by the method of special collection is to be collected by the method of ordinary collection.

The tax notice under paragraph (1) must be delivered to the taxpayer no later than 10 days before the due date for payment.

The payment period for individual municipal inhabitant tax collected by the method of ordinary collection is to be specified by Municipal Ordinance of the municipality concerned, within June, August, October and January (within June, where the amount of that individual municipal inhabitant tax is equal to or less than the amount equivalent to the per capita levy amount); provided, however, that where there are special circumstances, a payment period different from this may be specified.

A taxpayer of individual municipal inhabitant tax who intends to pay tax in an amount equivalent to the amount payable for a payment period that has arrived, out of the amounts payable stated in the tax notice, may also pay together tax in amounts equivalent to the amounts payable for payment periods after that payment period.

If a taxpayer of individual municipal inhabitant tax has paid, under the preceding paragraph, tax in an amount equivalent to the amount payable for a payment period after that payment period, the municipality may grant to the taxpayer a monetary incentive in the amount specified by Municipal Ordinance of the municipality. However, this does not apply if there are local government levies unpaid by the taxpayer.

The amount of the monetary incentive under the preceding paragraph may not exceed the amount obtained by multiplying one percent of the amount of tax paid before the payment period under paragraph (1) by the number of months before the payment period (where there is a fraction of less than one month, a fraction of 14 days or less is to be discarded and a fraction of 15 days or more is to be counted as one month).