Hi everyone, I have some questions about extra incomes in Japan.
I’m a British man working as an English teacher in Japan but want to make more money on the side- and I want to do this legitly.
1. I heard that you’re allowed to earn some extra money without having to declare it/pay taxes on it. Is that true? If so how much? A Japanese friend told me that a while back but I’ll also try Googling it too.
2. What other barriers might there be when it comes to extra incomes/entrepreneurial activities?
For example, say I started selling stuff on Shopify.. is it perfectly fine as long as I declare all the income? Am I restricted by my Visa type? Do I need some kind of special license or something to engage in these kinds of business activities?
Thanks for your help
by SufficientFish6904
4 comments
From an income tax perspective you don’t have to declare any income under 200,000 yen. You are supposed to file a residence tax return, though.
Whether you are able to do so under the terms of your visa, or whether your company allows you to engage in side work is a specific discussion for you to have with the relevant people.
Selling your own used stuff is different from trading/reselling commercial products which are always taxed (and also take care of VAT, bookkeeping to some extent and potential business licenses).
In general, if you’re [below 20万](https://alexkwa.com/200000-yen-rule-for-miscellaneous-income-in-japan/) a year with your side hustles that are categorized as “other/miscellaneous income”, you don’t have to pay taxes on it.
Everyone needs extra income these days 🙂
Check Hiring.cafe for remote jobs.