4. Tax rate in the japanese tax system.

The tax rate is determined based on the taxable income. Like in other countries, taxable income is the total earnings minus a basic exemption, exemptions for dependents and various types of deductions, such as deductions for insurance premiums, medical expenses and business expenses of the self-employed.

Almost everybody working in Japan has to pay taxes. There are however a few exceptions. If someone officially resides both in Japan and in another country, they might not have to pay taxes in Japan. There are individual agreements between countries, but usually, the main taxes are paid in the country where the person spends more time. As tax levels vary greatly according to the country, it is possible that one may have to pay all taxes in one country (say Japan), then the remaining difference in the other country if taxes over there are higher.

Income tax. People whose yearly salary is lower than 1.300.000 yen are exempt of income tax. If taxes have already been paid (by the company, for instance), these workers should mention it to get a tax refund. Expats whose salary is paid by a foreign company can have tax reduction or be exempted if taxes are already paid in the other country - and under certain conditions.

Resident tax. Actually not a tax on residence itself, but a local (as opposed to national) tax. It is lower than the income tax, but also depends on one's revenues.

Consumption tax. The current rate is 5%. It is the tax paid when buying/selling a product or service. The equivalent of the European VAT.

Tax Credit. After applying tax rates on taxable income for the Income Rate purposes, taxpayers can subtract tax credits. There are two tax credits allowed for the Individual Inhabitants Tax. One of them is Tax credit for foreign taxes. Such foreign taxes which can be deemed to be equivalent to Japanese Income Tax and Individual Inhabitants Taxes are creditable against the Japanese Income Tax and Individual Inhabitants Taxes to avoid double taxation. If the foreign taxes exceed the maximum amount creditable against the Income Tax under the Income Tax Law, such excess may be credited against the Prefectural Inhabitants Tax to the extent of the maximum amount creditable against the Prefectural Inhabitants Tax, which is equal to 12% of the maximum amount creditable against the Income Tax. And if the foreign taxes exceed the sum of the maximum amount creditable against the Income Tax and the Prefectural Inhabitants Tax, such excess may be credited against the Municipal Inhabitants Tax to the extent of the maximum amount creditable against the Municipal Inhabitants Tax, which is equal to 20% of the maximum amount creditable against the Income Tax.

4.1. a) Match the English word combination in the left-hand column with the Russian equivalents in the right-hand column.

1.	exempt	a.	Фиксированная ставка налога
2.	Trust company	b.	Причитающийся налог от (кого-то)
3.	Flat rate	c.	Пересылать, переводить
4.	To remit	d.	Начисленные проценты
5.	Tax due from	e.	Освобождение от налогов
6.	Non-residents	f.	Компания, выступающая в качестве доверительного собственника
7.	Accrued interest	g.	Временный житель

b) Make sentences with the words from the table