I have a small business social insurance / taxes question for the group. I've made an appointment with our judicial scrivener, but would love a second opinion if you're so kind to humor me.I'm self employed, and I pay for my wife's social insurance. She is about to start a business (Kabushiki-Kaisha).
This is the question: Does she need to immediately remove herself as my dependent on the first week of filing for her corporation, regardless of capital? I say not until the end of the financial year or until she hits some capital threshholds, and she is being told by her (japanese business partner) that she must do this immediately.
The company does not have income yet, or capital investment yet. She will not make over 1 million yen before the end of the year. They are projecting less than the "1.03 million yen wall" by Dec 31. However, there is an investment of 1.5 million yen towards expenses from partners, but that is not her personal income. However, she is the CEO.
I'm confused about the classification of small business as being defined as less than 5 employees and below 500 million yen, and these threshholds.
At the end of the fiscal year, she will be either in debt or break even. I suggested that she does not change her dependency until after December 31 when those amounts can be calculated.
My sources:
https://www.yayoi-kk.co.jp/kigyo/oyakudachi/fuyokazoku-kigyo/
https://bizer.jp/bizer/archives/3436
It is my understanding that small businesses with less than 500 million yen in the bank, and with total billables (not profits) of over 1.03 million yen must file within 5 business days, and it is not yet applicable to her.
Which is correct?
To file immediately seems too ahead-looking for me and, for what is an inconsequential startup deposit, would put too much of a burden on a startup.
For example, if she was a broke college student starting her business from scratch, I don't think she would declare this at the government office until the business moves beyond the idea phase and has modest billables. It seems premature to me.
But then again, I cannot believe Japan bills me for "best guess taxes" in advance! haha
Please tell me how this works.
by FortunateBeard