Hello,
Lately I’ve been reconsidering going to Japan on a working holiday visa while I’m still young, seeing as I live in Canada and it’s a good opportunity for young people like myself to get to know the country. Obviously you’re not really expected to get a typical full time job over there during the duration of your trip, but recently the idea of getting a remote job crossed my mind, considering all the new positions that opened thanks to the pandemic.
I guess what I’m asking is, how reliable of a source of income would this be, how would you go about reporting your taxes from another country, how would you convert your currency from USD, CAD, etc.? Programmers aren’t exactly paid all that well in Japan, and I don’t really want to teach English (through I’m not against it), partly because of my skillset and mostly because I’m about to graduate with a diploma, not a bachelor’s degree. Would I be better off just trying to find, say, a convenience store job if I were to follow through with this trip?
Thanks for your input.
2 comments
The national tax agency has a pretty good FAQ:
https://www.nta.go.jp/english/taxes/individual/12019.htm
“Even if your salaries and wages are paid from the parent company in your home country, you are working in Japan and earning employment income from sources in Japan.
If your salaries and wages are paid from Japan, income tax and special income tax for reconstruction will be withheld from your salaries and wages. As they will be paid from your home country, your salaries and wages will not be withheld in Japan.
In this case, you are required to submit the quasi-final tax return and make payment for the income tax calculated based on the tax rate of 20.42% on your employment income, as well as the special income tax for reconstruction before leaving Japan.”
Regarding currency, I believe you need to keep a log of currency rates and convert them at the time you are paid rather than using one exchange rate at the time of filing. You should ask an accountant or the NTA to be sure though.
One thing to take in account is while you are on a WHV where are you being a resident? Check with your employer if your contract is valid while you are resident of another country.
I have no idea how it is in Canada but in EU you will have to be a freelancer if you are a resident of a different country than where the company is registered. Maybe in Canada it’s not a problem though so be sure to check it out. This has to do (among others) with the social benefit and taxes that the company pays for every employer.