Japanese tax law

Japanese tax law requires individuals and businesses to pay taxes on income, consumption, property, and inheritance. Income tax is progressive, with rates increasing as income rises, primarily collected through annual filings. Consumption tax (similar to VAT) is added to goods and services at a standard rate, currently around 10%. Property and inheritance taxes are based on asset values. Employers withhold income taxes from wages, and taxpayers must report and settle their taxes annually. Japan also has specific regulations for deductions, allowances, and exemptions, designed to ensure equitable taxation and fund public services.