I work as a full time employee in Tokyo. I have a PR and N1 in Japanese.
I have some free time in which I am looking to do some side work such as translation/interpretation. I am assuming making 100k-200k a month through such gigs. The side gigs fall under my main skill through which I got my PR.
Can anyone please tell that should i be worried about taxes? If yes, then at what limit how much tax is incurred?
2 comments
/r/JapanFinance is a better place to ask such questions.
In short though, your side hustle income gets added onto your regular income and taxed accordingly. You’ll need to file a separate return, and there is the potential that your main employer will find out so it’s best to have their ~~permission~~ *approval* if you’re going to do this.
Short answer, yes you have to pay taxes.
Long answer.
The tax free amount for miscellaneous income is 200k a year. If you make under 20万円 then you dont need to report it.
Since you make over that you are legally obliged to file a 確定申告 at the end of the year which will detail how much money youve made as well as a submission of how much tax youve paid from your full time job. This has to be submitted by the 15th of march and then youll be required to pay income tax on the amount.
The amount will be combined with your full time salary to determine your tax bracket. But at the bare minimum you can expect to pay around 10% of whatever you make but this will change depending on your salary and much total income youve made in a year.