The withholding slip is a single page. Its key figures are the total payment, which is gross taxable pay for the year including bonuses and overtime; the amount after the employment income deduction; the total of personal deductions; and the income tax withheld. It also lists dependants, social insurance paid, and life insurance and mortgage deductions claimed. Tax-free items such as the commuting allowance, within its limit, are not included.
The employer must give the slip to every employee by 31 January of the following year, or within one month to someone who leaves during the year. It can be provided electronically. Copies go to the tax office for employees paid more than 5 million yen, and for directors paid more than 1.5 million yen, and the municipal version is used to calculate inhabitant tax.
A mid-year hire must hand the slip from their previous employer to the new one. Without it the new employer cannot include the earlier pay in the year-end adjustment, and the employee has to file a return instead.
What it means for a foreign employer
- Know which line to read. The total payment figure is the closest thing to a verified annual pay figure. It includes overtime and bonuses, so for non-managers it may be well above base salary times twelve.
- It shows last year, not this year. A slip from January reflects the previous calendar year. A candidate promoted since then will say their current pay is higher; ask for recent payslips too.
- Collect it from mid-year joiners. Put it on the onboarding checklist, or year-end payroll stalls.
- Expect to provide it to leavers on time. Departing staff need it for their next employer, a return, or a visa or loan application.
Sources
- Income Tax Act, Article 226; National Tax Agency, guidance on the withholding slip and statutory reports for 2025 and 2026.