I am aware similar questions have been asked multiple times but I fear I have to ask as I am not too financially literate and this is the first time I will be freelancing in Japan–before anyone asks me to refer to what I did as a freelancer back home, I was not a registered freelancer so payment was routed through someone who was AKA I did not deal with taxes directly.
The details are:
* I am on a long-term student visa (3 years), have only been here for less than 6 months
* I have “permission to engage in activities other than permitted under the status of residence”
* One-time contract with a foreign company, but this job will open up doors for more jobs from the same company/other foreign companies; I do not expect to take up more than 1-3 jobs per year and will never again when I shift to a work visa
* Work is to be done next year
* Payment is to be paid next year (via PayPal)
* Exact income from this specific job is TBC but more than USD 1000 and less than USD 3000
I would really appreciate an ELI5 on the following:
* Is there anything I should do to prepare for this job? From what I understand, opening up a sole proprietorship is optional but is it recommended in my case? What are the pros of opening up a sole proprietorship?
* From what I understand, I don’t have to worry about filing taxes until 2025 since I will be earning this next year. Is that correct? Based on my information (e.g., residence period, income), can I be exempt from taxes?
* What should I take note of with regards to filing taxes? Should I have my employer fill out a form or something? I have heard of the 支払調書, is that something I make myself or is there a form for it?
* Apart from opening up a sole proprietorship and filing income taxes, is there anything else I need to do before/after?
Again, I apologize for asking this as I’m not too financially literate and am at my wits’ end trying to figure out exactly what to do. Hope someone can help me make sense of all this. Thank you in advance!
by Confused7419