Short-term rental hosts in Japan don't directly contribute to a national tourism fund, but they are responsible for collecting and remitting various taxes from guests, which indirectly support tourism infrastructure and services. The key taxes are:
- Accommodation Tax (Lodging Tax): This is a local tax levied by several municipalities on guests staying in lodging facilities, including short-term rentals. Hosts are responsible for collecting this tax and remitting it to the local government. The rates vary by location and are usually tiered based on the accommodation price per person per night. For example:
Tokyo: ¥100 per night (¥10,000-¥14,999 room rate) or ¥200 per night (¥15,000+).
Osaka: ¥100 (¥7,000-¥14,999), ¥200 (¥15,000-¥19,999), or ¥300 (¥20,000+).
Kyoto: ¥200 (under ¥20,000), ¥500 (¥20,000-¥49,999), or ¥1,000 (¥50,000+).
- Consumption Tax (VAT): This is a national tax on goods and services, including accommodation. The current rate is 10%. However, hosts with annual taxable sales below ¥10 million are generally exempt from collecting and remitting this tax. Those exceeding this threshold must register as taxable enterprises and handle the collection and remittance process.
- Income Tax: Hosts must declare their rental income on their annual income tax returns. Japan uses a progressive income tax system, meaning the tax rate increases with income, ranging from 5% to 45%. A 2.1% Reconstruction Special Income Tax surtax is also applied to the calculated income tax.
It's crucial for hosts to consult with a tax professional to ensure they correctly understand and comply with all applicable tax obligations, including collection, remittance, and reporting requirements.