Hello everyone, I’ve been looking into all the available materials in this sub and also from the japanese government (both English and japanese), and the more I read the more confusing it gets.
I’ve been living in Japan for 2 years, I got the part-time authorization and have been working on this part-time (as a freelancer) since June 2023. I’ve made around 430,000 yen this year in total.
The confusing part is that my employer doesn’t deduct any tax and is asking me to get the tax ID (new invoice system), given that my income is so low, do I need to file the tax return? Is it advantageous for me to get into the tax ID system?
Please give me your advice, I am afraid to make any mistake and end up paying some crazy amount.
Edit: clarification
3 comments
I can’t help you much with your particular situation, sorry. But I was also doing a baito in a famous retail company when I was mext recipient (so student) and I NEVER had to do this type of things. I’d say that this smells fishy to me, but that’s just from my personal experience. Hopefully someone can guide you better
Generally you need to file a tax return if you earn over Â¥200,000 in a year; however, it sounds like you’re within the basic deduction level, so you won’t owe any income tax this year.
I’m not sure what your client means by “tax ID” in this context, though. If they mean your MyNumber, then you already have one of those – every resident does – although I don’t know why they’d need that if they’re not withholding tax from what they pay you. This is a normal thing to ask for when tax is being withheld, though.
On the other hand, if they want you to register for the new invoice system for consumption tax (which began in October), you should *probably* decline, as this effectively mean registering in the consumption tax system (which you’re not obliged to if you have less than Â¥10m in annual sales) and having to file a return and pay some consumption tax to the government (albeit at a very reduced rate for the next few years). On the flipside, if they’re really insistent about it (there are tax benefits to them if you register; but only tax downsides for you), you might feel pressured into registering so you don’t lose them as a client – that’s the issue a lot of freelancers have been facing with this system.
I have done baito a lot in many companies as a MEXT student. I think what they are asking for is this form 👇. You don’t have to fill in much except the yellow part (name, marital status etc.). That way the employer will not deduct tax from your salary but will file it to the govt. or something. Every job I have worked has requested this form at the end of each fiscal year. Just for formalities, although some companies fill it in for you and you’ll never know coz as a temporary employee they don’t need much details.
https://preview.redd.it/qw10q7ndgn4c1.jpeg?width=1080&format=pjpg&auto=webp&s=21238005a63f2f79032248c8d50ea8ac1880f772