I was looking at this pages advice ahead of my trip
https://www.japan-guide.com/e/e2206.html
And it says no tax return is required if the side income is less than 200k. I would be ecstatic if my side income reached that level and happily fill out the forms. But if im expecting maybe 50k yen at most, is this required?
I don’t mind paying, just wonder if anyone has any experience with that. Cheers!
1 comment
Firstly this “¥200,000 side income” exemption only applies to tax residents of Japan.
Secondly, it only applies to tax residents of Japan who have 1) no reason to file a final tax return For example their employer filed their end of year tax adjustment and they have no other sources of income to declare, and 2) the aggregated total of all “side income” is <¥200,000
Thirdly, this “¥200,000 side income” exemption only applies to income tax, not resident tax. So anyone who falls into (1) and (2) in the paragraph above, still need to add their <¥200,000 “side income” on a Resident tax return.
However, OP because you’re on a WHV you are a “Non-resident for tax purposes” meaning you’re not a tax resident of Japan, meaning any income you generate whilst your person is physically in Japan is subject to the 20.42% non-resident tax from every ¥1 you earn.
A Japanese employer would withhold this non-resident tax at source for you. But Because it seems your “side income” is not from a Japanese employer, you will need to file a “quasi tax return” instead.
Also, you can check the tax treaty between Japan and your home country to see if you can utilize that to offset any double taxation/establish your tax residency etc