I'm looking at sponsoring/hiring a full time employee, however they will only be working in Japan for 4 months of the year (December – March), outside of that they will be working remotely. All salary will be remitted to their overseas bank account. Based on this, I'm assuming they'll be a non-resident taxpayer, I'll be withholding 20.42%. What I'm struggling to figure out is what their health insurance and residents tax obligations will be.
For health insurance, I'm assuming they'll register their juusho when they arrive in December each year, and pay health insurance for the 4 months, then deregister in March. But what income should that based on? His whole salary for the previous FY, or just the salary he received while he was working in Japan Dec-Mar the previous FY?
As for residents tax I'm even more confused.
- Are non-resident taxpayers simply exempt from residents tax?
- If not, will he have to pay residents tax because he will be registered on Jan 1st (and if his Japanese work period was May-Aug he wouldn't? Seems odd/unfair?)
- If so, will he have to pay residents tax for the entire year or just for the months he's in Japan?
- Similar to health insurance, should his income for the residents tax calculation be his whole year salary, or only the salary received while working in Japan?
Appreciate any guidance, struggling to find correct rulings on this.
by xzion
