Understanding Your Gensen Choshu Hyo

The Gensen Choshu Hyo (源泉徴収票) is a vital document for anyone earning employment income in Japan. It's essentially a "Statement of Earnings and Withholding Tax" provided by your employer, usually in December or January, or when you leave the company.

What Information Does it Contain?

The Gensen Choshu Hyo summarizes your earnings and the taxes withheld by your employer for a specific calendar year. Key fields include:

• 支払金額 (Shiharai Kingaku) - Total Payments: Your gross annual salary, wages, and bonuses before any deductions.
• 給与所得控除後の金額 (Kyuyo Shotoku Kojo-go no Kingaku) - Amount after Salary Income Deduction: Your income after the statutory salary income deduction has been applied. This is a key figure for tax calculation.
• 所得控除の額の合計額 (Shotoku Kojo no Gaku no Gokeigaku) - Total Amount of Income Deductions: The sum of various personal deductions applied by your employer during the year-end adjustment (Nenmatsu Chosei). This typically includes social insurance premiums, life/earthquake insurance deductions, spouse/dependent deductions, and the basic deduction.
• 源泉徴収税額 (Gensen Choshuzeigaku) - Withholding Tax Amount: The total amount of national income tax (and reconstruction surtax) withheld by your employer during the year. This is the actual tax you've paid through payroll.
• Details of dependents (spouse, other dependents).
• Breakdown of social insurance premiums paid (社会保険料等の金額 - Shakai Hokenryo tou no Kingaku).
• Details of life insurance and earthquake insurance premium deductions.
• Information about housing loan deductions (if applicable and processed via year-end adjustment).
• Employer's name, address, and corporate number.
• Your name, address, and My Number (Individual Number).

Why is it Important?

• Proof of Income and Tax Paid: It serves as official proof of your earnings and the income tax paid through your employer.
• Filing a Final Tax Return (Kakutei Shinkoku): If you need to file a final tax return (e.g., you have other income, or want to claim deductions not handled by year-end adjustment), the information on your Gensen Choshu Hyo is essential for completing the return. You'll typically need to submit the original Gensen Choshu Hyo with your return.
• Applying for Loans or Visas: Financial institutions or immigration authorities may require it as proof of income.
• Changing Jobs: Your new employer might request the Gensen Choshu Hyo from your previous employer to correctly calculate withholding tax or perform a year-end adjustment if you join mid-year.
• Understanding Your Tax Situation: Reviewing it helps you understand how much you earned, what deductions were applied, and how much tax was paid.

When Do You Receive It?

• Typically in December or January after the year-end adjustment is completed.
• If you leave your job mid-year, your employer should issue it to you shortly after your departure.

Make sure to keep your Gensen Choshu Hyo in a safe place, as it's a critical document for your financial and tax records in Japan.