Question: What is Nenmatsu-chosei (year-end tax adjustment)?

Answer: Nenmatsu-chosei is the process of income tax adjustment for employees and directors, which is performed by salary payer in December or January every year.

  In Japan, Income Tax Law provides that the salary payer (a sole proprietor or a company) has to withhold income tax from salary of employee/director. However, monthly payroll calculation is made using the tentative number of dependents and estimated amount of annual salary income. The withheld tax amount is often different from final annual income tax to be paid. In addition, tax might be decreased if the employee/director has paid certain life insurance premiums, earthquake insurance premiums, etc.

  Salary payer is required to make an adjustment of income tax with the last salary calculation of the year, i.e. in December, it is called Nenmatsu-chosei. It can also be performed with the first salary calculation of the following year, instead of December salary. After the adjustment, the salary payer issues a certificate of income and withholding tax (Gensen-choshu-hyo) to each employee/director.

  The process of adjustment above is not applied to individuals who have annual salary of over 20 million yen, since they have to file the income tax return by themselves.

 For more detail, please feel free to contact TOMA Consultants Group.

     　TOMA Consultants Group　English Site      ⇒　 https://toma.co.jp/en/

年末調整とは？

Question: 年末調整とは何ですか？

Answer: 年末調整とは、給与支払者が役員や従業員のため毎年12月又は1月に行う所得税の調整の手続きです。

　日本では、所得税法により給与支払者（個人事業主または会社）が役員や従業員の給与から所得税を源泉徴収することとされています。しかしながら、毎月の給与計算は仮の扶養親族数や見積りの年収に基づいて行われているため、源泉徴収された税額は最終的な年税額とは異なります。また、役員や従業員が一定の生命保険料や地震保険料を支払っている場合等は、税金が減ることがあります。

　給与支払者は年内最終の給与計算、すなわち12月にこの所得税の調整を行う必要があり、これを年末調整といいます。年末調整は12月でなく翌年1月に行うこともできます。この調整の後、給与支払者は源泉徴収票を各人に発行します。

　なお、上記の調整手続は給与年額が2千万円を超える人には適用されませんので、自身で確定申告が必要です。

　詳細についてはTOMAコンサルタンツグループにお問い合わせ下さい。