Japan Citizenship & Naturalization: Avoiding Tax Pitfalls in 2025

The Basics of Tax Requirements in Naturalization

When applying for Japanese naturalization, one of the most important conditions examined by the Legal Affairs Bureau is the “Good Conduct Requirement.”
This does not only refer to having no criminal record, but also includes compliance with social rules in everyday life—particularly the proper payment of taxes and social insurance contributions.

The scope covers various taxes such as income tax, residence tax, business tax, and consumption tax (for self-employed applicants), as well as social insurance contributions like national pension, employees’ pension, and health insurance.

A common misunderstanding is that “even a single delay automatically leads to rejection.” In practice, delayed payments may not be fatal if they have already been settled in full. However, repeated delays or long-term installment payments are often interpreted as “disregard for tax obligations,” which can seriously harm the application.

Therefore, before filing, it is crucial to obtain your latest tax payment certificates and pension records to confirm that there are no issues.

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Common Pitfalls

Below are typical cases where problems with tax requirements often lead to rejection:

Pitfall	Example
Unpaid or delayed residence tax	Employee assumed taxes were deducted but the employer failed to pay, resulting in arrears.
Unpaid national pension	Periods of non-payment during student years or unemployment.
Missed exemption procedures	Neglecting to apply for an exemption, leading to “non-payment” status.
Unpaid self-employment taxes	Filing tax returns but delaying payment of consumption or business tax.
Family member’s non-payment	Spouse’s unpaid taxes or pension contributions negatively affecting household credibility.

Even if the applicant did not intend to default, the Legal Affairs Bureau may still consider such cases as part of “personal conduct.” This makes explanations and supplementary documents indispensable.

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When Problems Can Be Fixed—and When They Cannot

Not all tax-related issues automatically result in rejection.

Cases Where Improvement Is Possible

If past arrears have already been fully paid and a tax certificate clearly shows “paid in full,” the application may still succeed. In such cases, adding an explanatory letter or statement of reflection can help.

Cases Where Improvement Is Difficult

If there is a long history of arrears or repeated installment payments, it will likely be judged as “disregard for obligations.” Ignoring reminders from tax offices or city authorities leaves records that weigh heavily against the applicant.

Similarly, with pensions and health insurance, cases with proper exemption procedures are generally acceptable, but simple non-payment is a serious negative factor. In short, “using the system properly” is the key distinction.

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Difference Between Tax Certificates “No.1” and “No.2”

Naturalization applications require official tax certificates from local governments and tax offices. The two most important types are:

• Tax Certificate No.1 — Proves there are no unpaid taxes. Any arrears or installments will be listed.
• Tax Certificate No.2 — Shows income and tax amounts. Used to verify income history and tax amounts.

By reviewing both, the examiner can check whether taxes have been properly paid and whether the applicant’s income is stable. If “No.1” lists arrears, it leaves a strongly negative impression—so applicants should obtain and check these certificates in advance.

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Case Study: Company-Related Tax Trouble

A common misconception among employees is:
“Since taxes are deducted from my salary, they are automatically paid.”

In reality, there are cases where the employer itself failed to pay the taxes. For example, if a company was struggling financially and delayed paying residence tax, the employee may unknowingly be marked as “unpaid.”
This could result in the application being denied, even though the individual was not personally at fault.

The best safeguard is to always request your own tax certificates and confirm your records, rather than relying solely on the company.

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Tax Requirements in Naturalization vs. Permanent Residency

Both naturalization and permanent residency place importance on tax compliance, but there are subtle differences:

Application Type	How Tax Compliance Is Evaluated
Naturalization	Strictly reviewed as part of the Good Conduct Requirement. Even short-term arrears can be a serious negative.
Permanent Residency	Examined under the Independent Livelihood Requirement and Good Conduct Requirement. Long-term stability (3–5 years) is emphasized.
Common Point	Any arrears create a risk of rejection. Full payment and proof through certificates are essential.

In short, because naturalization grants Japanese nationality, authorities take an especially strict approach. The standards are higher than for permanent residency.

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Pre-Application Checklist

Before applying for naturalization, be sure to confirm the following:

• Obtain the past three years’ tax certificates (No.1 and No.2) and confirm no arrears.
• Consolidate pension records and confirm payment status at the pension office.
• For self-employed applicants, prepare tax returns, blue return statements, and proof of business tax payments.
• Confirm that household members (spouse, dependents) also have no unpaid taxes or pension contributions.

Self-employed applicants and freelancers must pay particular attention, as they bear direct responsibility for bookkeeping and payments.

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Conclusion: Clearing the Tax Requirement

In naturalization, even if income is sufficient, the application can still be denied if there are problems with taxes or social insurance.
It is essential not only to believe you have paid, but also to obtain official certificates and confirm objectively.

Past arrears may be forgiven if fully settled and accompanied by an explanation, but repeated or neglected arrears cannot be undone.

Meeting the tax requirement is not merely a formality—it demonstrates credibility as a member of Japanese society.
Ensuring proper tax and social insurance compliance is the most important foundation when applying for naturalization.

Ishinagi Administrative Scrivener Office

If you want to obtain Japanese nationality quickly and securely, or if you feel uncertain about preparing the required documents, please feel free to consult our office in Yodogawa-ku, Osaka.
We handle requests from all over Japan and provide the most suitable support based on our experience with immigration procedures and applications to the Legal Affairs Bureau.

If you wish to proceed with your naturalization application smoothly and with confidence, please don’t hesitate to contact us.

▶ See our fee schedule here

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