Japan’s Internal Affairs Ministry has begun a nationwide survey to assess the extent of unpaid individual resident taxes owed by foreign workers who left the country in 2024. The move comes after concerns were raised in the most recent regular session of parliament about foreign nationals departing without fulfilling their tax obligations.
The individual resident tax in Japan is levied annually based on the previous year’s income. Authorities have found that in some cases, foreign residents—often due to a lack of awareness of Japan’s tax system—return to their home countries without paying the tax in full.
The survey, running from Aug. 1 to Sept. 1, will collect data from all municipalities on the number of such cases and the total amount of unpaid taxes. It will also examine the use of the lump-sum collection system, where employers settle unpaid taxes on behalf of workers before they leave Japan, and the role of tax agents who manage taxation procedures for departing foreign nationals.
Additionally, the ministry aims to understand how municipalities are informing foreign workers about the resident tax system before their departure. This could lead to new measures to improve awareness and enhance tax collection practices, ensuring fair and consistent application of the system to all residents.
The findings of this survey are expected to guide future policy on tax compliance and strengthen Japan’s efforts to manage its growing foreign workforce responsibly.
