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Spring
June 30th, 2009, 11:16
So I just found out we get this massively large residency tax bill (mine is 100,000yen) for every year we live in this country. Apparently even Japanese people have to pay it as well so I don't feel completely ripped off.

I hear JET reimburses you fully for your residency tax. How nice for the JET's! Do most teaching companies reimburse you for your residency tax? As nice as it would be, I don't think Interac reimburses you for your residency tax. Should they? I was a little surprised by this tax since it was barely mentioned at all. I guess that's just another one of the many prices you pay for choose to live and teach in Japan.

Ini
June 30th, 2009, 11:20
don't feel too bad, if you had a better salary you would be paying a lot more than 100,000

cvmurrieta
July 1st, 2009, 11:11
So I just found out we get this massively large residency tax bill (mine is 100,000yen) for every year we live in this country. Apparently even Japanese people have to pay it as well so I don't feel completely ripped off.

I hear JET reimburses you fully for your residency tax. How nice for the JET's! Do most teaching companies reimburse you for your residency tax? As nice as it would be, I don't think Interac reimburses you for your residency tax. Should they? I was a little surprised by this tax since it was barely mentioned at all. I guess that's just another one of the many prices you pay for choose to live and teach in Japan.

Interesting. Mine didn't come to 100,000 yen.

Ini
July 1st, 2009, 11:18
I've just paid a 19man resident tax bill so stop complaining

cvmurrieta
July 1st, 2009, 11:30
I've just paid a 19man resident tax bill so stop complaining

wtf??? Mine was a fourth of that. Of course, mine was probably calculated for over a four month period. Next year will be more expensive for me.

Grimalkin
July 1st, 2009, 12:25
That really sucks. Since I was only working for about 4 months last year mine was low at 7,700 yen. Not looking forward to it getting higher, but I still dont see how it could get as high as everyone elses. Even if it goes 3 times higher to cover the rest of the year...

Coollead
July 1st, 2009, 13:53
So I just found out we get this massively large residency tax bill (mine is 100,000yen) for every year we live in this country. Apparently even Japanese people have to pay it as well so I don't feel completely ripped off.

I hear JET reimburses you fully for your residency tax. How nice for the JET's! Do most teaching companies reimburse you for your residency tax? As nice as it would be, I don't think Interac reimburses you for your residency tax. Should they? I was a little surprised by this tax since it was barely mentioned at all. I guess that's just another one of the many prices you pay for choose to live and teach in Japan.

JET isn't a company, office, or any sort of authoritative body. People on the JET Program are hired directly by a local or prefectural Board of Education, or rarely, a Private School. This Board of Education (BOE) will sometimes pay the fee for the ALT, CIR, or SEA, by taking out a small portion of each paycheck.

mteacher80
July 1st, 2009, 16:25
what sucks is when the BOE gives you a little extra on your pay check each month but not enough that you really let on, but then the bill comes and you havent saved any of it and you are screwed. this is why i tell all our new jets during our job orientation just after they get here, when talking about money stuff, that they should ask that as soon as possible.

wicket
July 1st, 2009, 16:42
1. JET is NOT a company and does NOT pay your residency tax - your CO does.
2. It costs even more in England - ours is about 1000 pounds a year.

Spring
July 1st, 2009, 16:43
JET isn't a company, office, or any sort of authoritative body. People on the JET Program are hired directly by a local or prefectural Board of Education, or rarely, a Private School. This Board of Education (BOE) will sometimes pay the fee for the ALT, CIR, or SEA, by taking out a small portion of each paycheck.

Ah you know what I mean. So not all JET's get their residency tax reimbursed?

Schuldich
July 2nd, 2009, 10:11
This info is for NON-JETs. (Cuz I don't know of a JET who has to pay, but if so maybe this info works for you too.)

If you make more that 1.9 million yen a year the tax is 10% of your income from the previous year (Jan-Dec). If you make less than that you only pay 5%.
The average 1st year Interac's income (March-Dec of 1st year) means you pay around 9man or so because you make less than 1.9million yen. Same follows if you arrived in August it is even lower.

However the next year if you have been working from Jan to Dec you can look forward to a Residents Tax of 18-19man. This is the normal amount and you should prepare for it. This is because you will fall under the 10% bracket. Residents tax is the same about all over Japan now too so placement isn't a factor except how they break it down.

Just a thought for those staying on next year so you won't be surprised when it comes. Also Interac does not pay for this and most companies do not pay for it as well. However do remember the bonus at the end of your 2nd year contract that may help out a bit. (But it won't fully cover the tax either.)

This info is for NON-JETs.

Neb
July 2nd, 2009, 10:18
Be sure to ask your BOE JETs. I emailed and asked my BOE supervisor, and was told that I will be reimbursed the 19man residence tax the month following the tax bill (so they don't pay me a little extra to cover for the tax every month)... but that amount is only for my second year, in my first year I'll be paying about 4-5man...

cvmurrieta
July 3rd, 2009, 09:41
This info is for NON-JETs. (Cuz I don't know of a JET who has to pay, but if so maybe this info works for you too.)

If you make more that 1.9 million yen a year the tax is 10% of your income from the previous year (Jan-Dec). If you make less than that you only pay 5%.
The average 1st year Interac's income (March-Dec of 1st year) means you pay around 9man or so because you make less than 1.9million yen. Same follows if you arrived in August it is even lower.

Wow! No wonder why my tax was so low this year. Good thing I have said my money for when I have to pay more next year.

ChuChuRocket!
July 4th, 2009, 10:46
My third year on JET I paid 80,000.

This year, my fourth year, I'm paying 180,000.

The horror. The horror.

elleohelle
July 4th, 2009, 10:53
But residency tax is paid by your CO correct?

ChuChuRocket!
July 4th, 2009, 11:18
Right it is. Though I completely forgot (see, my own fault) to put the extra money aside for the past 6 months. A common problem for many JETs.

I put aside about 80,000 because I figured it would be the same as last year. I was not expecting the 180,000. It just caught me a bit off guard.

Thank goodness you can pay over time, and that I'm staying in Japan for a bit longer.

Spring
July 11th, 2009, 12:37
Wow, I'm thinking about talking to my BOE directly and asking if they will reimburse my residency tax, even though we have no communication with them at all...lol

Schuldich
July 13th, 2009, 09:43
Wow, I'm thinking about talking to my BOE directly and asking if they will reimburse my residency tax, even though we have no communication with them at all...lol

Let me know how that works out. :D

AliDimayev
July 13th, 2009, 11:09
I had no clue about this tax...

Yeti99
July 13th, 2009, 14:36
I had no clue about this tax...

1st & 2nd year American ALT's don't have to pay it.

Spring
July 13th, 2009, 16:01
1st & 2nd year American ALT's don't have to pay it.

That's lucky! Why is that?

Schuldich
July 13th, 2009, 16:21
1st & 2nd year American ALT's don't have to pay it.

I have heard this, but have never seen proof. I'm a 2nd year American and I got taxed. Do you have any info on this? It would be helpful to know.

AliDimayev
July 13th, 2009, 17:00
1st & 2nd year American ALT's don't have to pay it.
Allahu akbar!

アメリカで生まれて、よかった。

elleohelle
July 14th, 2009, 03:06
I have heard this, but have never seen proof. I'm a 2nd year American and I got taxed. Do you have any info on this? It would be helpful to know.

We were required to fill out a 6061 form with IRS. Research the process. I think you may be qualified for it, but I'm not a tax accountant either.

FiercestCalm
July 14th, 2009, 03:32
I think the 6061 form only negates the tax for the first year, though.

Yeti99
July 15th, 2009, 10:24
Why? No idea, one of the perks of the program I guess. At our contract signing ceremony, the kencho ALT instructs all 1st & 2nd year American ALT's (I'm pretty sure CIR`s are not eligible), and a few other countries (can't remember where off the top of my head) to fill out a form that is basically exemption from resident taxes. Again, this is only specific to the JET Program as far as I know. Here is some info from the official kencho newsletter:

What is Inhabitants’ Tax?
JET participants who are liable to pay taxes in Japan will also be liable for the Inhabitants’ Tax. The annual Inhabitants’ Tax is a municipal and prefectural tax calculated on your previous year’s income (Jan. to Dec.). Although the Inhabitants’ Tax is calculated in accordance with your income, it may also vary from area to area. The amount is calculated and levied locally (i.e. by your city hall) and can vary between 10,000 JPY and 300,000 JPY. Those who do have to pay this tax will be reimbursed by the prefecture.

Who Pays?:
1. Select 1st and 2nd Year JETs: ALTs from the UK, Australia, New Zealand, Canada, South Africa, Jamaica and Trinidad-Tobago, and all CIRs must pay. Irish, US and Finnish ALTs are exempt.)
2. All 3rd, 4th and 5th Year JETs: (ALTs and CIRs must pay regardless of their nationality.)

How much?:
As mentioned before, the amount is levied and calculated locally, and can be anything between 10,000 JPY and 300,000 JPY. I understand that there is a HUGE difference between having to pay 1man and 30man, but I am afraid I will not be able to answer questions about your individual Inhabitants’ Tax liabilities. As a rule of thumb though, as first years started work in July/August, they should only be liable to pay 5-6 months worth of the Inhabitants’ Tax, whereas 2nd, 3rd, 4th and 5th years can expect to pay a much larger amount. Please start putting money aside for this payment now!
MUNICIPAL ALTs AND CIRs:
You, too, are responsible for this tax according to the explanation I wrote under “Who Pays”. Your Contracting Organization (not the Prefecture) will reimburse you for the tax. Different COs do the reimbursement different – generally it’s either the way the Ken does it (paying you back in full after you submit a receipt) or it’s a series of payments given to you over the year, which you are supposed to save up to pay the tax when it becomes due. You’ll need to talk to your CO about which method they use if you haven’t already.



Ok, so it looks like this is for ken ALT's only. If your CO is the town/city, it looks like you've gotta pay. Hope this helps.

elleohelle
July 15th, 2009, 11:21
I have a question. Your contracting organization stops reimbursing this after the first two years, correct?

AliDimayev
July 15th, 2009, 11:57
That's what I am lead to belive. Good thing I am here for two years.

mteacher80
July 15th, 2009, 12:17
I am going to be entering my 5th year and have never paid it. it comes in the mail and i just hand it over to the finance office here in kencho and a few weeks later i get a sheet i have to hanko saying i know they paid it for me.

Wakatta
July 15th, 2009, 22:52
1st & 2nd year American ALT's don't have to pay it.

Really? I didn't know the tax thing covered that, too.

Coollead
July 15th, 2009, 23:53
I don't think it's a JET thing so much as it's part of the tax agreement between America and Japan, having to do with our Visa status.

ploobloo
September 30th, 2011, 08:53
Hey everyone. I'm sorry for bumping this old topic but I was lead into thinking that Japanese income tax usually does not exceed 10k. So is it true that our contracting company (most likely either AEON or Amity for me) will take care of it for the first two years of taxes? Also, I found this site here: Taxes in Japan (http://www.japan-guide.com/e/e2206.html) and calculated tax according to Amity's salary (285k/month for 12 months unless eikaiwas aren't year round) and it came out to around 550k tax, which is just as high as the US. Can anyone who has worked for Aeon or Amity clarify this? Thanks in advance!