What is special one-stop system? Easier than filing in the end!

What is the special one-stop system for tax payments in the home country?

The special one-stop system for paying taxes in the home country is a system that allows you to get the same deduction effect without the need of final declaration. It can be an unfamiliar system for people who have never paid taxes in their homeland. We will keep you informed of the details.

Features of one stop exception

In the past, in order to pay home taxes and get deductions, a finalization report was required. On the other hand, for those who do not need year-end filing due to year-end adjustments such as salaried employees, it would be troublesome to submit the final filing just to pay home taxes.
The one-stop special system that started in 2015 is a system that allows you to receive a home tax deduction without the need to make a final report. Those who meet the conditions may receive the same deduction as the final report.

Special one-stop use conditions

Introduce the terms of use of a special one-stop system.

■ Those who do not need to confirm initial progress

Only those who do not need to final report can receive the deduction using the special one-stop system. Those with salaries above 20 million yen or those with a lot of income need to report in the end, so they cannot use the one-stop special system.
In addition, if you make the last declaration, the procedure for the one-stop ad hoc system will no longer take effect. Therefore, there is no point in using the one-stop special system for those who need to receive deductions other than home taxes, such as home loan deductions and medical expense deductions. .

■ Recipients pay taxes for one year at home in 5 local governments

The one-stop special system can be used by donors in 5 local governments for a year. Not available if donated to more than 6 local governments.

Procedural difference vs final declaration

Although it is a final statement and an exceptional one-stop system can have the same deductible efficiency, strictly speaking, there are the following minor differences.

Final statementSpecial one-stop system
conditionThose who need final declarationThose who do not need final declaration
Number of local governments that can be donatedInfiniteWithin 5 cities
Number of procedures / td>OnceEvery time you donate
DeadlineMarch 15 next yearJanuary 10 next year
Income tax refundIt’s correctNothing
Resident tax withholdingIt’s correctIt’s correct

There is basically no limit to the number of local governments that can be declared on the final return. The one-stop special system can only be used within 5 local governments, but if multiple donations are made to the same local government then the system will be counted as one local government. .

The biggest difference is the deductible. In the final return, income tax is refunded and residency tax is withheld, while in the special one-stop system, only residence tax is withheld. Basically, the total deductible amount is the same no matter which one you choose.

However, this does not apply if you have paid your hometown tax over the limit. Of the residency tax deducted from home tax payments, the special portion has a limit of more than 20% of the percentage of resident tax income. In addition, the amount that is deducted in lieu of the special one-stop system income tax is calculated from the special residence tax withholding amount. Therefore, if you overpay tax and are deducted under a special one-stop system, the amount of the deduction may be less than the final return.

Application process and method of one-stop exceptions

A special one-stop system allows only those who meet the requirements to have a home tax deduction without filing a final return. This is a very convenient way to avoid the trouble of final declaration, but the records must follow the prescribed procedures. We will guide you through the basic process of a special one-stop system.

Step 1. Prepare the application form

There is a prescribed form for a special one-stop system. The application form can be downloaded from the website of the Ministry of Home Affairs and Communications. Depending on the tax site in your home country, the form may be available on My Site.
In the application form, in addition to general personal information such as name, address, contact address and gender, date of birth, personal number (my number) must be entered. Enter the name of the head of local government and the date of the donation. There is also a final undeclared confirmation column and a column confirming up to 5 donations from local governments.

Step 2. Prepare document verifying my identity and number

In order to apply for the special one-stop system, a copy of the identity documents must be included with the application. The following combinations are recognized as identity verification documents when applicable.
A. My number card (double sided copy)
B. Notice my number + 2 points or more from local government approved documents such as driver’s license, passport, health insurance certificate, pension book
C. Permanent Resident Card (write in my number) + 2 or more points from local government approved documents such as driver’s license, passport, health insurance certificate, pension book

Step 3: Submit the application to the local authority

We will send the required documents above to the local government of the place of donation. The deadline for submission is January 10 of the year after the year of consideration and donation. If you do not arrive in time, you will have to make a final report.
If you have donated to more than one municipality, your application will not be accepted unless you submit your application to each municipality. If you have donated multiple items to one city, you can include multiple registration documents at the same time.
If there is a change to the application details, we will complete the “Special Disclosure Application Change Notice Form” and send it to the local government where the contributor is to be made by January 1. Documentation can be downloaded from the website of the Ministry of Home Affairs and Communications.

Summary

People who generally do not need a final report, such as salaried employees, often use the special one-stop system to receive a home tax deduction. The amount of the deduction is different from the final return, but if you pay your home tax within the limit, it doesn’t lose.

The final application process is very complicated. If you work as an office worker, there are many people who have never claimed the last time. Please use the special one-stop system and benefit from the resident tax deduction.

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