An important notice concerning individual resident tax to all Gunma residents who are salaried workers

Effective FY2017, all municipal governments of will collect individual resident tax (kojinjuminzei ) by way of Special Tax Levy (Tokubetsuchoshu), meaning employers withhold the tax from their employees’ monthly salary. *Please note that individual resident tax refers to the combination of municipal and prefectural taxes.

 If you are a salaried worker, your employer will withhold your individual resident tax from your monthly salary for payment to your local municipality. This is called “Special Tax Levy” or Tokubetsuchoshu. It’s similar to the current system of withholding your income tax (Shotokuzei) from your monthly salary.

 In accordance with Paragraph 4, Article 321 of the Local Tax Law of , business owners who are obliged to withhold their employees’ income tax from their salary are also obliged to withhold individual resident tax via Special Tax Levy.

 All employees-irrespective of their status (full-time, part-time, etc.) -who were on the payroll the preceding year and will continue to be so as of April 1, 2017, are subject to Special Tax Levy.

(Individual resident tax will continue to be paid by individuals other than salaried workers in four installments: August, October, and January of the following year, upon receipt of “Tax Notice/Tax Payment Slip” sent by their local municipal tax office. This is called Normal Levy or Futsuchoshu as opposed to Special Tax Levy.)

Special Tax Levy (Tokubetsuchoshu) System

Submit Annual Payroll Statement

(Kyuyo Shiharai Municipal Employee Employer Hokokusho) Government Hand out Special Tax Levy Notice (1) Due Date: Taxpayers January 31, 2017 (4) Due Date: (2) May 31 Calculate tax Withhold Tax via amount Special Tax Levy Inform about Amount Collect individual Special Tax resident tax via Levy Total Special Tax Levy

(5) (3) Due Date: Withhold tax from May 31 salary starting June (to May of the following year) Pay the individual

resident tax withheld

(6) Due Date: 10th of the month following pay day

Definition of a Special Tax Levy Payer (Employer)

 Salary payers who are obliged to collect income tax at the source (business owners)

Definition of a Taxpayer (Employee)

 Employees who were on the payroll of a special levy tax payer (employer) in the preceding year (January 1 through December 31) and who continued to be on the payroll as of April 1 (the first day of the current fiscal year)

 If any of the Items A through F below applies, a taxpayer can pay their individual resident tax by way of Normal Levy (Futsuchoshu) as an exception provided upon their employer’s request.

A: Business owners whose headcount is two or fewer (excluding the total number of employees for whom apply the below Items B through F)

B: Employees who are Otsuran Gaitosha (individuals who have more than one income source) and pay their individual resident taxes via Special Tax Levy via another employment

C: Employees who earn less than the taxable amount (Employees who earn less than JPY930,000 or *JPY965,000 annually. See below for clarification.)

D: Employees who are not on the payroll constantly

E: Employees who are on the Senjusha payroll, such as a business owner’s family members

F: Employees who 1) are on leave of absence 2) have resigned 3) are scheduled to resign on or before May 31 and are included in the Kyuyo Shiharai Hokokusho (annual payroll statement) for the preceding calendar year.

Please also note the followings: - If you meet the abovementioned requirements and qualify for paying the individual resident tax via Normal Levy, you must submit an Ido Dotokedesho form (notification of personnel changes). - The annual salary mentioned in Item C above applies as follows: JPY965,000 for residents of , , and Kiryu JPY930,000 for residents of all other municipalities If employees live somewhere other than Gunma Prefecture, please contact the applicable prefecture/municipality.

Here are the numbers to call for inquiry.

City/Town/ Depart- Phone City/Town/ Depart- Phone City/Town/ Depart- Phone Village ment Number Village ment Number Village ment Number

Annaka Zeimuka 027-382-1111 Kusatsu Zeimuka 0279-88-7186 Nakanojo Zeimuka 0279-75-2111 Shiminzeika 0270-27-2716 Shibukawa Zeimuka 0279-22-2113 Zeimuka 0279-82-2244 Itakura Kosekizeimuka 0276-82-1111 Shimonita Juminzeimuka 0274-82-2113 Nanmoku Juminzeimuka 0274-87-2011 Ueno Somuka 0274-59-2111 Showa a Zeimuka 0278-24-5111 Numata Zeimuka 0278-23-2111 Oura Zeimuka 0276-47-5011 Shinto Zeimuka 0279-54-2211 Higashiagatsuma Zeimuka 0279-68-2111 Oizumi Zeimuka 0276-63-3111 Takasaki Shiminzeika 027-321-1218 Fujioka Zeimuka 0274-40-2231 Ota Shiminzeika 0276-47-1818 Takayama Zeimuka 0279-63-2111 Maebashi Shiminzeika 027-898-6208 Katashina Juminka 0278-58-2111 Tatebayashi Zeimuka 0276-72-4111 Midori Zeimuka 0277-76-0964 Kawaba Juminka 0278-52-2111 Zeimuka 0270-64-7703 Minakami Zeimuka 0278-62-2111 Kanna Juminseikats 0274-57-2111 Chiyoda Zaimuka 0276-86-7002 Meiwa Zeimuka 0276-84-3111 Kannra ukaJuminka 0274-74-3131 Zeimuka 0279-96-0511 Yoshioka Zaimuka 0279-26-2237 Kiryu Zeimuka 0277-46-1111 Tomioka Zeimuka 0274-62-1511 March 2017