Guest viewing is limited

Taxes In Japan & Living Comfortably

Status
Not open for further replies.
All of the Japanese companies I have worked for use the 14 month system.
 
Same result - thus the ubiquitous nenmatsu chosei. Doesn't change the calculation.
 
  • Like
Reactions: Sudsy
Sudsy said:
You seem to have not read what I posted above - which was a complete breakdown on a ten million yen salary, as calculated by government approved payroll software - so here it is again.
Note that it includes health (shakai hoken and disability/long term care), pension payments, and employment insurance, which you seem to have forgotten about.

Annual Remuneration: 10,000,000 yen (approx. 833,333 monthly)

Shakai Hoken: 496,500 (41,375 monthly)
Disability (long term care): 78,684 (6,557 monthly)
Pension: 663,204 (55,267 monthly)
Employment Insurance: 50,016 (4,168 monthly)

Social Total: 1,288,404 (107,367 monthly)

National Tax: 841,920 (70,160 monthly)
Resident Tax: 626,040 (52,170 monthly)

Tax total: 1,467,960 (122,330 monthly)

Overall total: 2,756,364 (229,697 monthly)

27.56% (total percentile deductions for income tax, resident tax, and all social insurances)

Further, I said the payroll deductions should cap out around 27% - which is simply what the maximum tax and social insurance liability will be, and short of having your wages garnished, there very much is a rule dictating the maximum deductions that will be removed from your salary - it's called the national tax law. They government cannot arbitrarily decide to tax one individual more than another. If you're making ten million yen as a company employee, without additional benefits such as housing or transport above 50k yen, and you're paying more than the figures I listed, you should talk to your accountant, because something is wrong.
Click to expand...
Since you claim to be an expert, I will run this by the company accountant next week for fun.
 
  • Like
Reactions: Sudsy
Solong said:
I mentioned already that social insurance are deducted from tax. Which is why on the progressive tax rate of 33% for 10,000,000 yen, it's reduced to 20%. I also posted a link, and have others, showing the progressive national tax rates based on income. And it surely isn't 8.5%.

Only if you have a full time job. If you work a bunch of part time jobs nothing is taken out.
Click to expand...
 
Solong said:
Since you claim to be an expert, I will run this by the company accountant next week for fun.
Click to expand...

Sure, just use the same criteria. 40 year old company employee, no dependents, no transit allowance, renting his own place in Tokyo.
 
TAG Manager said:
As far as FATCA is concerned, I think the banks already reported these things, no? I had to fill out FATCA forms when the more recent accounts were opened. (I still believe anything under $10k USD is non-reportable or not necessary... wrong?)
Click to expand...

I don't work in finance, but a close friend of mine does and his explanation is as follows.

If total deposits in a given bank by an American or someone taxable in the US (green card holder etc.) exceeds USD 50K the bank is required to report it. If for example, you have USD 60K spread equally between 3 banks, the banks won't report that because they won't know about the other deposits. In other types of investment vehicles, in certain countries, you can have up to USD 1 million and it won't be reported. However, those institutions are required to report any time they make a payment to a US citizen/green card holder regardless of how much the pay out is or how much is in the investment.

I believe the USD 10K limit you're referring to is what the tax filer is required to report to the IRS, not the bank.
 
  • Like
Reactions: Expired Beef! and just4fun
cabbie said:
I don't work in finance, but a close friend of mine does and his explanation is as follows.

If total deposits in a given bank by an American or someone taxable in the US (green card holder etc.) exceeds USD 50K the bank is required to report it. If for example, you have USD 60K spread equally between 3 banks, the banks won't report that because they won't know about the other deposits. In other types of investment vehicles, in certain countries, you can have up to USD 1 million and it won't be reported. However, those institutions are required to report any time they make a payment to a US citizen/green card holder regardless of how much the pay out is or how much is in the investment.

I believe the USD 10K limit you're referring to is what the tax filer is required to report to the IRS, not the bank.
Click to expand...

If you have an aggregate of 10k, you are obligated to report this to the IRS or the Treasury. If you make over 90K, then you will have to pay a tax. If you have X amount of assets, you better hope you can convert your ass into shitting bricks of money factory cause Uncle Sam will send you a bill.
 
split said:
10k aggregate amongst all foreign accounts (regardless of individual country FACTA agreements - overzealous tyrants) must be reported. Unlikely that they would find those accounts in countries like China.
Click to expand...

Basically what I said. And it's 99k+ exemption only after you've filed the proper FEIE exemption forms.
 
Last edited:
The problem with making authoritative statements, calling people idiots, and subsequently being proven wrong, is that you end up looking like a boob.

So much better to say 'I think...' or 'to the best of my knowledge...' Especially if you are an unaccredited layman, unlike some of us here.

It's always safer to assume that someone else on TAG is an expert, because we are a collection of educated exceptional gentlemen and ladies with raging libidos.
 
  • Like
Reactions: Sudsy, John Chavers, AliceInWonderland and 4 others
Who was proven right or wrong? Japan is nothing more than an oasis, an illusion. One man's 27 percent is another man's 40. "Pimp taxes"are 50 plus. I digressed. One man's comfortable living on less money than a Chinese factory worker makes in a decade is another man's nightmare on tuna. One man's tuna appetite starves the others and the others out of pure envy attack said sushi love and call him closet gay, only to be outed as a bumbling idiot around women. The tax on that has to be around 37 percent. I prefer sashimi rather than sushi. My comfort is in knowing that I can get sashimi from various places. The tax on that is 100 percent if you get the bad oyster type. They exist. Which ones are bad I dunno, but they exist. Which brings me to conclude that taxation rates are on a variable scale depending on which company you are pimped out by unless you are retired or self employed. That tax is more like a "zero tax" joy ride until you are about 50. Then when you are age discriminated against and can't find a job, that "zero tax" kicks in and exiles you to a room above a karaoke bar or pink salon. The cloud of moist smokey air prevails, your death tax sets in, lung cancer. You can't seem to understand why you tax payments can't be withdrawn since you have a short time. "You can't get a payment until 65". At 57, 8 years seems unlikely. The government office has a record of 40 years of tax payments and marvel at the fact that you never missed one, but still say "dekinai". You leave the room knowing that in that account you have over 1o million yen in that account. Enough to buy some hookers, premium smokes, and one last go at life before the ultimate tax kicks in. Alas, you get a good lawyer that gets you a deal. The government wants 40 percent of your retirement money and reduced early distributions until death, plus free healthcare. 40 percent of my money? Then the lawyer requires another 15 percent in fees. Then another, ex wife wants 30 percent, which leaves you with 15 percent which went to the karaoke bar owner. Taxes, who knows exactly what is paid in and what is not? Who's comparing salary payment stubs? I don't any of you are, so no one is proving anything. Just like a bunch of old geezers are not proving to the young that a lifetime of work under terse conditions will benefit them in the end. All I have learned is that I need not take this topic serious and that Solong pays way more in taxes than the rest of us blokes and Jezebels.
 
Bumping a not so old thread...

Now that tax season is here does anyone know of, and can possibly recommend, a local tax company that can manage to support a US tax return based on working for a local Japan company.

As a naturalized US citizen I have to file a return and would appreciate advice based on the tax statement provided by my company which in no way resembles a W2.

Was previously on transfer and the company took care of this, now it's my own task.

Thanks.
 
  • Like
Reactions: John Chavers
Serenity Now said:
Bumping a not so old thread...

Now that tax season is here does anyone know of, and can possibly recommend, a local tax company that can manage to support a US tax return based on working for a local Japan company.

As a naturalized US citizen I have to file a return and would appreciate advice based on the tax statement provided by my company which in no way resembles a W2.

Was previously on transfer and the company took care of this, now it's my own task.

Thanks.
Click to expand...

I'm interested too, my situation has changed is the area of assets, compared to prior years.
 
  • Like
Reactions: John Chavers
Does anyone know if US Social Security will be taxed here in Japan? (I'm old ok)
Plus......what bank can I get a direct deposit from US dollars here in Japan? I have a ShinSei account but I have no idea if the US Govt recognizes them....
 
I used Citibank Japan as required by my company, they are now Sumitomo Prestia but I had a US dollar account and could transfer US dollars from my US account to the dollar or yen accounts.
 
  • Like
Reactions: just4fun
I have done transfers between my Shinsei account and accounts I have in banks in the US, going both ways. It was a lot easier to go from US$ in the US banks to ¥ in the Shinsei account than the other way around, but both worked ok.

-Ww
 
  • Like
Reactions: just4fun
Thank you Gentleman!!!
 
  • Like
Reactions: Wwanderer
Yeah, some of the fees are brutal. I don't pay close attention, but in general I think it is better to do as few transfers as possible (i.e., make amounts larger and do it less often). Exchange rate fluctuations have been pretty big in recent years too...which can work for or against you of course, depending.

-Ww
 
Serenity Now said:
Bumping a not so old thread...

Now that tax season is here does anyone know of, and can possibly recommend, a local tax company that can manage to support a US tax return based on working for a local Japan company.

As a naturalized US citizen I have to file a return and would appreciate advice based on the tax statement provided by my company which in no way resembles a W2.

Was previously on transfer and the company took care of this, now it's my own task.

Thanks.
Click to expand...

I did a quick search and found the following link with this description:

"Tokyo Japan-based US-CPA provides low cost US income tax preparation and advisory services for US expat citizens and taxpayers worldwide."

http://www.us-taxcpa.com/

An American accountant also advertises in the Japan News, but I am not sure if it is the same accountant, but I believe so.
 
  • Like
Reactions: Wwanderer and Serenity Now
roots reggae said:
I did a quick search and found the following link with this description:

"Tokyo Japan-based US-CPA provides low cost US income tax preparation and advisory services for US expat citizens and taxpayers worldwide."

http://www.us-taxcpa.com/

An American accountant also advertises in the Japan News, but I am not sure if it is the same accountant, but I believe so.
Click to expand...

Thanks the research and post.
 
Expired Beef! said:
Who was proven right or wrong? Japan is nothing more than an oasis, an illusion. One man's 27 percent is another man's 40. "Pimp taxes"are 50 plus. I digressed. One man's comfortable living on less money than a Chinese factory worker makes in a decade is another man's nightmare on tuna. One man's tuna appetite starves the others and the others out of pure envy attack said sushi love and call him closet gay, only to be outed as a bumbling idiot around women. The tax on that has to be around 37 percent. I prefer sashimi rather than sushi. My comfort is in knowing that I can get sashimi from various places. The tax on that is 100 percent if you get the bad oyster type. They exist. Which ones are bad I dunno, but they exist. Which brings me to conclude that taxation rates are on a variable scale depending on which company you are pimped out by unless you are retired or self employed. That tax is more like a "zero tax" joy ride until you are about 50. Then when you are age discriminated against and can't find a job, that "zero tax" kicks in and exiles you to a room above a karaoke bar or pink salon. The cloud of moist smokey air prevails, your death tax sets in, lung cancer. You can't seem to understand why you tax payments can't be withdrawn since you have a short time. "You can't get a payment until 65". At 57, 8 years seems unlikely. The government office has a record of 40 years of tax payments and marvel at the fact that you never missed one, but still say "dekinai". You leave the room knowing that in that account you have over 1o million yen in that account. Enough to buy some escorts, premium smokes, and one last go at life before the ultimate tax kicks in. Alas, you get a good lawyer that gets you a deal. The government wants 40 percent of your retirement money and reduced early distributions until death, plus free healthcare. 40 percent of my money? Then the lawyer requires another 15 percent in fees. Then another, ex wife wants 30 percent, which leaves you with 15 percent which went to the karaoke bar owner. Taxes, who knows exactly what is paid in and what is not? Who's comparing salary payment stubs? I don't any of you are, so no one is proving anything. Just like a bunch of old geezers are not proving to the young that a lifetime of work under terse conditions will benefit them in the end. All I have learned is that I need not take this topic serious and that Solong pays way more in taxes than the rest of us blokes and Jezebels.
Click to expand...

My company accountant and JETRO members, http://www.jetro.org/ (who offer guess Japanese advisers on taxes and free advice to foreigners helping to establish businesses in Japan) stated I was spot on. However, there is a difference if you are working for a Japanese company, versus doing your own taxes or are an independent contractor. An independent contractor can get away with not paying health or pension deductions, and to include paying less on local taxes. If your company is taking everything out, you would usually pay more. If you are paying the taxes yourself, it could be significantly less.

The difference in paid taxes, in the different situations, can be 10% or more. As in the unmarried company employee paying towards 40% or more in taxes and deductions (at a 10,000,000 yen a year salary), where the foreign independent contractor or person filing their own taxes could be getting away with paying 30% or so. And your tax rate obviously depends on your yearly income, as in the more you make, the higher your taxes are likely to be. So check your rate.
 
Last edited:
Status
Not open for further replies.