Repercussions of working remotely?

I work for an MNC in Japan that shifted me here this year. Unfortunately for me, they have adopted a completely remote work policy which will never change again. This has done bits to my mental health as I’ve been sat cooped up in my tiny apartment in a new country without much time to explore/socialize/etc. I don’t want to quit and have explored other job opportunities but I was wondering what exactly the repercussions may be if I just left to another country and worked anyways. Has anyone done this? My HR have told me that I can not do that due to Japanese tax laws.

17 comments
  1. As in, you want to no longer be a resident of Japan, or you want to work while “vacationing” in other countries but maintain residency in Japan?

  2. Not gonna be much help with legal things, but could you move within Japan? Because you’re working remotely it doesn’t really matter where you are. Get out of the tiny city apartment and into somewhere with much more space and nature.

  3. You can live somewhere where your money takes you really far like that. Which MNC is it? We need a list of remote friendly companies in Japan.

    Repercussions are that you pay tax where you live and you need a visa that allows you to work in whatever country you’re in. So essentially it can get you jailed and deported from whatever country you work in without a visa

  4. Yes you can’t do that – you would have to stop being a Seishain and become a contract worker. You will lose your japan benefits but at least you get to keep your job.

  5. • health care

    • pension

    As a contract worker, you’d have to get your own / pay for your own where you choose to live in. In the MNC I work for, this is what another coworker is doing.

  6. Maybe you could also look into coworking spaces or something like that. I’ve used some off and on to get the hell out of my house before and during COVID. Some are very community-focused and encourage people to socialize, have social events, etc. Others are basically just fancy rooms with a bunch of desks and a coffee machine. At the very least it gets you out of your apartment during the day and makes it easier to separate work life and private life.

  7. No need to sit in your rabbit hutch and stress out. You can certainly travel. I have friends that work in Airbnbs all over Japan and occasionally work from Vietnam, Guam and Phuket. Sounds like as long as your getting your work done, you can be anywhere, right? Traveling outside of Japan occasionally doesn’t affect your taxes. And as others have said, check out the serviced offices: Servcorp, WeWork and the local providers all have hot desk options that are pretty reasonable. And with WeWork you can use their offices all over Japan and beyond.

  8. Live in Shimokitazawa. Right after you shutdown the PC, get out the apartment and go explore. There are a lot of places and options to meet and socialize with people.

  9. 100% Remote work is a blessing. Why not invest in a bigger place? Or move to a part of Japan you really like? If I was in your shoes (and did not have a wife and kid) I’d just go live in Ishigaki spring, summer, autumn, and a Ski town in winter, and remote work for my Japanese employer there.

    However, as your OP is about other countries….

    As long as you remain a resident of Japan and a tax resident of Japan, and continue to engage in status of residency (i.e work for your Japanese employer) then you’re all good with both the NTA and immigration.

    So there is nothing to stop you going overseas for many short holidays year and getting the 1 year special re-entry permit on departure. I’d recommend not exceeding 100 days per holiday, and not exceeding a total of 180 days out Japan per year. Because that may arouse questions of you actually being a legitimate resident, as opposed to a “resident for convenience”, which could affect your visa. Also definitely avoid spending >180 days per year in your home country too as depending on the tax treaty (if applicable) that could cause conflicts with your Jusho (tax residency).

    This of course means having a registered address in Japan, and paying all required taxes, health insurance and pension to Japan too.

    Whilst on holiday overseas you can also of course do remote work for your Japanese employer whilst on a holiday as long as the country you’re in (CountryX) allows it. (Typically on a tourist visa most countries in the world WON’T allow it though, but that’s between you and countryX). It’s a grey area, but in Thailand for example apparently there is no specific Thai law against foreigners who are conducting their normal overseas work while being in Thailand. The advice is to just keep it below 6 months and DONT work for any Thai employers/Thai clients (not professional advice, please do your own due diligence there)

    You can’t work for another employer in CountryX though anyway because you’re supposed to be a resident of Japan working for your Japanese employer. I mean of course you can, as long as your have the immigration right to work for a CountryX employer, then no one is going to physically stop you, it just could cause immigration issues for you if caught by Japanese immigration (and of course CountryX immigration if you’re say in countryX on a tourist visa when CountryX don’t allow tourists to work)

    tax gets more problematic when you lose residency in Japan and/or Japanese tax residency, but still remote work for your Japanese employer.

  10. A simple answer to your question is to demand a move back to your home country and work Japan hours, I guess?

    Setting that aside and considering the possibility you stay in Japan: I assume that you’ve been moved to Japan because of your skill in your field, and that you don’t actually speak any Japanese and have no interest in learning the language. Which is absolutely fine! But in that case, I wouldn’t recommend living outside Tokyo (tho it’s possible to find English-speaking friends in major cities, the network will be limited). The countryside, in particular, is gonna be hell for you. I’m also willing to bet this means that your company procured your apartment, and you aren’t keen on moving so quickly.

    Two ideas:

    1. Are there co-working spaces in your neighborhood? I’d be shocked if there weren’t. Or, are you within easy commute to a neighborhood with more activity, such as Shimokitazawa, Koenji, Shibuya, Asakusa, etc?
    2. Since you’re not going to join a Japanese-language group (I bet) are there English-language groups for a hobby you like?

  11. If you’re sat cooped up in your apartment without much time to get out and explore in Japan, why wouldn’t you face the exact same issue in any other country you went to?

    Whereabouts in Japan are you, incidentally? Remote work means you are instantly able to explore your local area as soon as your work shift is finished, and no time lost to commuting.

  12. Remote work, right? How about moving to Fukuoka? Life’s good here, and relatively cheap which can make you afford a larger apartment

  13. Regarding taxes, the company is probably more worried about the possibility of a Permanent Establishment (PE) rather than your personal income tax. In theory, if you would have a fixed presence (such as a home) in another country and work from there for the Japanese company, this could create taxable income in that other country under corporate tax laws. I.e., your company would need to pay corporate income tax in that other country. There can be quite a lot of ambiguity regarding PE rules which is probably why the company doesn’t want to take any risk so they prohibit it completely.

    But as others have said, remote work can be a blessing! I have nothing to add that others haven’t said already so let me end by saying: enjoy!

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