Recently while reading details about tax structure in japan, I got to know many things which might be useful when thinking for job or long term stay in Japan.
Japan tax structure is not complex but calculation is bit complex. Some of the main highlights/points to be remembered are
There are different tax slabs in Japan for paying tax. per month <380000 is tax free
Tax rate is 20.42% flat for non residents. and for residents its as per the tax slab.
IF person stays less than a year then he is considered as non resident. more than one year is considered as resident. If person has stayed more than 5 years in the country then he is considered as permanent resident and needs to declare global income. (Global income is income earned in various countries)
If person has not completed 5 years then he needs to pay tax in all respective countries where he is earning income including Japan.
If person is salaried then tax returns are filed by organization/employer on behalf of employees.
There is separate residential tax taken over and above income tax by each municipality once person completes one year in japan.
For reference I have added japan tax calculator which gives you quick idea of taxation.
Residential tax also gets deducted from employee's salary
Remittances has no limits on transactions but should have sufficient amount remitted to dependents staying in other countries
Remittance to a certain amount (Max 380,000 per dependent) has tax rebate in Japan if conditions are followed
Person should be paying taxes in Japan
He is supporting his family dependents
Provide proof of relations and dependent's identity
Remittances can be done through valid and registered organizations like transferwise,vwestern union etc.
Remittances to be done directly to the dependent's account and not in NRE account (No cash or other ways allowed)
Furusatonozei will have tax rebate
Earthquake insurance also has tax rebate
self owned house can be claimed for tax rebate if there is ongoing loan in the property
If any income is brought to japan then it will be taxable and need to be declared.
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