Hello everyone,
I got a question regarding working remotely for a company outside of Japan while being there on a working holiday visa. I know similar questions have been asked before, but after reading through them I still got some questions and clarifications.
The situation: I’m from Germany, planning on going to Japan for 1 year on a working holiday visa. Currently I’m thinking about asking my current (german) employer whether I could keep working for them remotely on a part-time basis for the first couple months I’ll be in Japan.
As I’ve gathered from reading previous responses:
Legally that shouldn’t be a problem.
And when it comes to taxes I understand that there’s a treaty between Germany and Japan, so that there is no double taxation. But I’m unsure whether that’s only relating to income tax or also the social taxes? Also I read in an article about 20% tax on the income, but elswhere on a much lower percentage because it’s the first year in Japan and my income would be in the at the max in the second lowest taxable income bracket. Which of the two ist correct?
Lastly I wanted to if anyone knows if there’s anything in particular my company would have to watch out for regarding this arrangement? Especially when it comes to the insurance and pension. Will my company have to pay the employee part just like a Japanese company would or is there a different regulation in this situation. (As I am the one approaching my employer with this idea, so I want to be as prepared as I can.)
Sorry the whole thing got a bit convoluted. I’ve been researching a lot and finding slightly different explanations each time, so I hope someone on here might have a better understanding (and maybe even first-hand) experience on the topic.
Thank you!
by JoshBurnstein