Income tax

How to Calculate Personal Income Tax in Japan

Q. How is Personal Income Tax Calculated in Japan? A. Personal income tax in Japan is determined by applying a tax rate to the tax base, which is the income earned by an individual during the year. In other words, the amount of income tax is basically calculated by applying a tax rate to the amount remaining after subtracting deductions and exemptions from “gross income”. In practice, further tax credits are applied to the...