Japan Initiates Investigation into Unpaid Residential Taxes by Foreign Nationals
The Japanese Internal Affairs Ministry has launched a comprehensive survey aimed at understanding the extent of unpaid individual resident taxes by foreign workers who left Japan in 2024. The survey, which will run from August 1 to September 1, 2025, targets all municipalities across Japan.
This proactive measure is a response to the issues of unpaid taxes by foreign workers that were highlighted in the most recent session of the Diet (Japan's parliament). The survey aims to determine the number of cases of unpaid taxes, assess the amount of unpaid taxes, and evaluate the usage of mechanisms like the lump-sum collection system by employers or tax agents managing tax procedures for departing foreign nationals.
In Japan, the individual resident tax is collected annually based on the previous year's income. However, problems have been identified in the past regarding foreign workers leaving Japan without paying outstanding taxes after their stay periods. The survey aims to address this issue and improve tax collection from foreign workers who have previously left Japan without settling their tax obligations.
The survey also investigates how employers handle resident tax payments when taxes cannot be deducted from wages. This is an important aspect as it will provide insights into the effectiveness of the lump-sum collection system and potential areas for improvement.
Attention is also given to how municipalities inform foreign workers about their tax obligations. Some foreign workers may leave Japan unaware of the taxation system, leading to unpaid taxes. The survey results may lead to improved communication and awareness among foreign workers about their tax obligations, preventing future unpaid taxes.
After compiling survey data on unpaid tax cases and amounts, the ministry plans to formulate policy responses to improve collection and reduce unpaid taxes among foreign workers leaving Japan. No specific new enforcement measures have been announced yet; the ministry is still gathering data and will consider actions based on the findings of this comprehensive survey.
The survey results may also highlight the need for stricter measures to ensure tax compliance from foreign workers. If the survey reveals significant unpaid taxes, it may lead to discussions in the next regular session of the Diet about implementing new policies to address the issue.
In conclusion, the Japanese Internal Affairs Ministry's survey is a crucial step towards improving tax collection from foreign workers leaving Japan. By understanding the extent of the issue and identifying areas for improvement, the ministry hopes to reduce unpaid taxes and ensure a fair tax system for all residents, regardless of nationality.
[1] Japanese Internal Affairs Ministry Press Release, Aug. 1, 2025. [2] NHK News, Aug. 1, 2025. [3] Asahi Shimbun, Aug. 1, 2025.
- The survey's findings may lead to discussions in the next regular session of the Diet about implementing new policies to address the issue of unpaid taxes by foreign workers, which could potentially include stricter measures to ensure tax compliance.
- In light of the survey's aim to improve communication and awareness among foreign workers about their tax obligations, the ministry plans to formulate policy responses that could include enhanced measures to inform foreign workers about their tax responsibilities, thereby preventing future unpaid taxes.
