Japanese consumption tax is an indirect tax on goods and services, similar to value-added or sales taxes. Tax increases in Japan are notoriously unpopular and changes to the consumption tax have faced long delays and political battles. On October 1, the general consumption tax rate in Japan was raised from 8% to 10%, with a secondary tax tier of 8% for food products meant to be consumed at home. This increase had been delayed multiple times since its initial implementation date in 2015. The last consumption tax increase, from 5% to 8% in 2014, had been the first in 17 years.
As expatriates in Japan search for rental housing, they should be aware of a common fee required on top of rent and security deposit. This payment is called ‘key money’ or in Japanese, ‘reikin’ (礼金).
Below is a 1-second-a-day video taken by AIRINC Survey, Zenab Tavakoli, during her recent cost of living survey through many parts of Russia and Japan.