Japanese Tax Rates

[2XL]

Could someone advise the current tax arrangements in Japan. Yes, this is in the context of working there as a contract Airline Pilot commuting from Australia.

[ 02 September 2001: Message edited by: 2XL ]

[Home Brew]

As far as I can find out, the Japanese tax rates for 2000 were:-

upto 3,300,000 yen - 10%
from 3.3 to 9,000,000 yen - 20%
from 9 to 18,000,000 yen - 30%
above 18 million - 37%

There is also a double tax agreement between Oz and Japan, but tax accountants may not have the total picture covered.

But lets not forget that the Jex guy's have their tax paid for them, and it should be the same with Air Japan..

[2XL]

Many thanks, I shall get the calculator fired up and compare the figures.

Could you expand on the Japanese/Australian tax arrangements.

[Kaptin M]

To pay Japanese tax you will need to have a resident's visa and card, which I don't believe Air Japan are going to issue for their foreign crews. Additionally, you probably won't be able to file the tax return in Japan on your own, you will need professional guidance.

The "arrangement" on which you request information, is an ATO/Government ruling whereby the Australian Government acknowledges that taxes paid in certain recognised countries fulfil the individual's requirement, meaning he does not have to AGAIN pay tax to the Australian Government, on income earned abroad, except perhaps for the Medicare levy.
I understand that New Zealand's tax arrangements may differ slightly, by defintion of where your home and family are also located, and not just you, which in the case of the Air Japan contract may make Kiwis subject to New Zealand tax.

As with all matters related to tax, get a professional's WRITTEN opinion and guidance - the penalties for tax evasion will bankrupt you.

[Home Brew]

Further, speaking from personal experience here, the tax man will consider you an Oz resident, as long as you have an Oz resident, kids, ball & chain, cat, dog and a mother-in-law all in Oz. Under the double tax agreement, when you complete an Oz tax return, they will note your overseas income, and then tax your Oz income at the applicable rate. e.g. If you earn and pay tax on 100K overseas, any $$'s you earn in Oz will be taxed at the rate for 100k plus - 37%.

As for the work permit/visa in Japan. Heard from one of the Air Japan guy's currently under training - they think that when commuting and arriving in Japan, they will enter under a tourist visa, and then will take an international flight on the GD! Now it beats me how a person can enter a country on a tourist visa, and then operate a flight out, particularly when that airline is based in the said country.

All I know is that most work contracts state that you must abide by the laws of XXX Country, and this would include immigration laws. So once immigration have a good look at the situation, and if its not all cosher, the preverbial will hit the fan, and you won't see the contract agents for dust.

2XL, hope this helps....

[2XL]

Thanks for the updated info. I would appreciate some recommendations on helpful and knowledgeable accountants/financial advisors re these tax issues.

Email me if you would rather at [email protected]

There is such a broad viewpoint on the contract market with a commute, I can't get the same two answers from two people. Is it that in the end many areas are open to interpretation after all ?