~If your salary is 100万円 then you literally pay no tax. What’s there to reduce?~
Edit: OP clarified this is monthly income. In this case I added another comment.
I’m not an accountant, and talking to an accountant is smarter than asking the internet, but can you get a lower salary with more benefits?
Annual fights home can be provided tax free, if the company provides you with housing, only a portion of the rent is taxed.
My work provides meals and a car, but I’m not sure if that’s to reduce tax or just to make life easier.
There are probably other indirect payments that can be used to reduce tax, either talk to an accountant, or to the company accountant (they often enjoy these style questions).
If you have a non-working partner is it possible for the company to employ them, and pay you less? Reasonably common back in NZ, where someone earning 194k would have 180k payed to them avoiding the 39% tax bracket on income over 180k and have the last 14k payed to partner who doesn’t actually work taxed at 10%
Okay since OP has clarified this is a montly income, I’ll assume a 10% bonus, which makes a total annual income of 1320万 or so. In this case then yes, the tax is quite costly and the folks at japanfinance should have better advices for you. Below are some of the things I currently do.
– Max out all the eligible saving accounts like NISA, iDeco, SJDC. – Take advantage of furusato nozei. You can use the calculator [here](https://www.furusato-tax.jp/about/simulation) to see how much you can pay to other municipalities. I have a Rakuten credit card, so I get 3% back in point, which added up. – A trick many people use is registering dependents oversea, each person is a 38万 deduction. But they cracked down on this lately and require you to prove you actually send at least that much back home per dependents. For me it is ok because I send a few millions back home every year anyway, your milleage might vary. I find this a bit hillarious because with an income above 1220 万 or so, you can’t get a deduction for your spouse anymore, but you can still get a deduction for your spouse’s grandmother for example.
3 comments
~If your salary is 100万円 then you literally pay no tax. What’s there to reduce?~
Edit: OP clarified this is monthly income. In this case I added another comment.
I’m not an accountant, and talking to an accountant is smarter than asking the internet, but can you get a lower salary with more benefits?
Annual fights home can be provided tax free, if the company provides you with housing, only a portion of the rent is taxed.
My work provides meals and a car, but I’m not sure if that’s to reduce tax or just to make life easier.
There are probably other indirect payments that can be used to reduce tax, either talk to an accountant, or to the company accountant (they often enjoy these style questions).
If you have a non-working partner is it possible for the company to employ them, and pay you less? Reasonably common back in NZ, where someone earning 194k would have 180k payed to them avoiding the 39% tax bracket on income over 180k and have the last 14k payed to partner who doesn’t actually work taxed at 10%
Okay since OP has clarified this is a montly income, I’ll assume a 10% bonus, which makes a total annual income of 1320万 or so. In this case then yes, the tax is quite costly and the folks at japanfinance should have better advices for you. Below are some of the things I currently do.
– Max out all the eligible saving accounts like NISA, iDeco, SJDC.
– Take advantage of furusato nozei. You can use the calculator [here](https://www.furusato-tax.jp/about/simulation) to see how much you can pay to other municipalities. I have a Rakuten credit card, so I get 3% back in point, which added up.
– A trick many people use is registering dependents oversea, each person is a 38万 deduction. But they cracked down on this lately and require you to prove you actually send at least that much back home per dependents. For me it is ok because I send a few millions back home every year anyway, your milleage might vary. I find this a bit hillarious because with an income above 1220 万 or so, you can’t get a deduction for your spouse anymore, but you can still get a deduction for your spouse’s grandmother for example.