How to Prevent Missed Tax Payments When Switching to Ordinary Collection#

For foreign nationals working in Japan, the payment of Residence Tax (Juminze) is not merely a financial obligation but a critical requirement for maintaining a valid Status of Residence (visa). Under normal circumstances, corporate employees pay this tax through “Special Collection,” where the amount is automatically deducted from their monthly salary. However, when an employee resigns or changes jobs, the payment method often switches to “Ordinary Collection,” requiring the individual to pay the tax personally.

This transition period represents the highest risk for accidental non-payment. Unfortunately, under the Japanese Immigration Control and Refugee Recognition Act, failure to pay taxes can be a decisive factor in denying a visa renewal or Permanent Residence application. This article outlines the mechanics of this system and details specific measures to prevent missed payments, ensuring your immigration status remains secure.

Understanding the Two Collection Methods#

To navigate the system effectively, one must first understand the fundamental difference between the two methods of tax collection in Japan.

1. Special Collection (Tokubetsu Choshu) In this system, the employer deducts the Residence Tax from the employee’s monthly salary and pays it to the municipality on the employee’s behalf. This cycle typically runs from June of the current year to May of the following year. For most full-time employees, this process is automatic and requires no action from the individual.

2. Ordinary Collection (Futsu Choshu) In this system, the individual pays the tax directly to the municipality. The city hall sends payment slips (bills) to the individual’s registered address. Payment is usually divided into four installments due in June, August, October, and January of the following year.

The Danger Zone: The Switch The transition from Special to Ordinary Collection usually occurs upon resignation from a company. If an employee leaves a job between June 1st and December 31st, the company stops deducting the tax for the remaining months. The company notifies the municipality, which then processes the change and mails payment slips to the individual for the unpaid balance.

This process involves a “time lag.” It can take several weeks or even months after leaving a job for the payment slips to arrive. During this gap, individuals often move to a new address, travel, or simply forget about the pending tax liability. If the slips are lost or ignored, the tax becomes “unpaid.”

Why Tax Compliance is Vital for Immigration Procedures#

The Immigration Services Agency of Japan places immense weight on an applicant’s compliance with Japanese laws. When applying for an extension of the period of stay or changing a visa status, the applicant’s tax payment record is scrutinized to assess their “good behavior” and financial stability.

For applications involving work visas (such as “Engineer/Specialist in Humanities/International Services” or “Specified Skilled Worker”) and especially for Permanent Residence, submitting a Tax Payment Certificate (Nozei Shomeisho) is standard procedure.

Impact of Non-Payment: If the certificate shows unpaid taxes, the examiner may conclude that the applicant fails to fulfill basic residency obligations.
Impact of Late Payment: Even if the tax is eventually paid, a history of repeated late payments can negatively affect the outcome, particularly for Permanent Residence applications, which have strict requirements regarding timely payment.

Excuses such as “I didn’t know I had to pay myself” or “The bill didn’t arrive because I moved” are rarely accepted, as it is the resident’s responsibility to manage their address registration and tax obligations.

Concrete Measures to Prevent Missed Payments#

When facing a switch to Ordinary Collection, proactive measures are essential. Here are four effective strategies to ensure you never miss a payment.

1. Request “Lump Sum Collection” Upon Resignation (Ikkattsu Choshu)#

This is often the most effective preventive measure. “Lump Sum Collection” means asking your employer to deduct the entire remaining annual Residence Tax from your final salary or severance pay before you leave the company.

If leaving between Jan 1 and May 31: The law generally requires the company to deduct the remaining tax from the final salary automatically.
If leaving between Jun 1 and Dec 31: The company will only do this if you request it. You should proactively ask your HR department: “Please deduct the remaining Residence Tax from my final paycheck” (Nokori no juminzei wo ikkatsu choshu shite kudasai). By doing this, you complete your tax obligation for the year immediately, eliminating the need to handle bills later.

2. Set Up Automatic Bank Transfers (Furikae Nozei)#

If you must switch to Ordinary Collection, setting up an automatic direct debit from your bank account is highly recommended. Once you receive the payment slips from the city hall, you can apply for this service at a bank or post office, and often via the municipality’s website.

Once established, the tax amount will be automatically withdrawn on each due date. This eliminates the risk of forgetting a deadline. Note that setting this up can take 1–2 months, so you may need to pay the first installment manually at a convenience store.

3. Use Mobile Payment Apps or “Pay-easy”#

Most modern tax slips in Japan come with a barcode or a QR code (eL-QR). You can use smartphone payment apps (like PayPay, LINE Pay, d-Payment) to scan the code and pay instantly from home. Alternatively, the “Pay-easy” system allows you to pay via online banking or ATMs.

The advantage of this method is immediacy. As soon as you receive the mail, you can pay it within seconds. This prevents the common scenario where a person puts the bill in a drawer intending to pay later, only to forget about it until a warning notice arrives.

4. Transition Back to Special Collection at a New Job#

If you start a new job shortly after leaving the old one, you can ask your new employer to resume Special Collection. You should bring the Ordinary Collection payment slips you received at home to the payroll or HR department of your new company. They can file a request with the municipality to switch the billing from you back to the company. This restores the convenient salary deduction system.

Dealing with Address Changes#

A common cause of unpaid taxes is moving house without properly forwarding mail. If you move after quitting a job, the tax slips will be sent to your old address.

Always submit a “Change of Address Notification” (Tenkyo-todoke) at the post office to have mail forwarded for one year.
Visit the city hall of your previous residence to inform them of your new address specifically for tax purposes if the bills have not arrived yet.

Conclusion#

The switch from Special Collection to Ordinary Collection is a bureaucratic mechanism that creates a significant vulnerability for foreign residents in Japan. The temporary freedom from salary deductions often leads to an accumulation of unpaid tax debt that can jeopardize future life in Japan.

By understanding that tax compliance is a cornerstone of immigration evaluation, and by utilizing tools like Lump Sum Collection or Automatic Bank Transfers, residents can protect their visa status. Managing these obligations proactively is a sign of stability and responsibility, qualities highly valued by the Japanese immigration authorities.