I might be coming to japan for university. However i would like to know if my overseas income will taxable in japan. It is not fixed and varies but is about 30 – 40 million in Japanese yen, in my home country this is taxable against the highest tax slab at 30%. I would like to know what are the tax laws in japan for income earned from outside of the country. Do you recommend hiring an accountant for managing my taxes if i do come to japan. And will my post tax earnings me sufficient to live in a city like Tokyo for about a year. Cause i’ve heard that Tokyo is very expensive for rent and other things.
4 comments
That’s a high income for a Tokyo resident, will let you live more than comfortably.
The taxation – and whether you’re even allowed to earn it, because you will be a student and restricted in terms of # of working hours – is another question. You’ll want to check out /r/JapanFinance.
Like /u/dokool mentioned, head over to /r/japanfinance for the details.
The short answer: For that level of income, you ***absolutely*** need to be consulting with accountants and tax attorneys.
Slightly longer answer: If you remit that income to Japan, it will almost certainly be taxable. And it will be taxed fairly heavily at that level of income.
Also: There’s a big question as to whether you’ll be allowed to earn that much, given that on a student visa you are only allowed to work 28 hours a week. And yes, working for a company outside Japan *absolutely* counts.
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>I would like to know what are the tax laws in japan for income earned from outside of the country.
The basic rule is that if any part of the revenue stream enters Japan while you’re a resident then you’re subject to taxes on the entire revenue stream. I’d expect it to be 40% but if you’re earning that much money you can definitely afford professional assistance.
Be aware that the 28 hours per week limit for work will apply to you regardless of where your employer is located or how you’re getting paid. Immigration will definitely have questions as to how your income would be that high as a student, so make sure you keep a detailed paper trail. Again, with an income of that level you can afford a professional assistance.