Japanese Income Tax Rates for Pilots

[airplanedriver]

Anyone here who is working in Japan who can advice on this? Getting conflicting reports on the rates, some say 25% others 40%. The Jetstar Japan gig would lie entirely on this topic, which otherwise has got many advantages. Thanks for al your inputs

[The Dominican]

Closer to the 40% mark, with all the social services deductions and the city taxes is about 38%

[USMCProbe]

Google it, it is all there. City and Prefecture are a flat 10 pct, national tax is progressive and very high. I believe 33 pct above 8 or 9 million yen if I remember. For Jetstar wages probably 33-40 percent overall by my memory of a couple weeks ago when I looked at it.

They also pay in Yen, and the yen is near its all time high. If it goes back to its historical norm of the last 20 years, your pay will go down a lot.

[airplanedriver]

Thanks for the info, are there any tax exemptions for housing or insurance policies etc? I was told there could be exemptions of around 10-15% but not confirmed or clear. Also are the bonuses taxed?

[USMCProbe]

I wish I had better info but Jetstar is structuring their contract different than the others I have seen. Paid in yen, in Japan. The contract agency told me tha the housing allowance or part of it would be exempted from tax but this wont make a huge difference. The tax rates are still very high. I know several ex ANA guys and they said their contract was different.
That is all the info I have.

[burnable gomi]

For your first 5 years (I believe) you are considered a temporary resident and pay much lower taxes. It'll be less than 10%.

[The Dominican]

burnable gomi For your first 5 years (I believe) you are considered a temporary resident and pay much lower taxes. It'll be less than 10%.

If I'm not mistaken, this is only for careers that are being listed as necessary imports of foreign skills by the Japanese government, like English teachers for example, there are a few more on the list as I recall but aviation professionals is not one of them, you will be taxed without exemptions.

I wish I had better info but Jetstar is structuring their contract different than the others I have seen. Paid in yen, in Japan. The contract agency told me tha the housing allowance or part of it would be exempted from tax but this wont make a huge difference. The tax rates are still very high. I know several ex ANA guys and they said their contract was different.
That is all the info I have.

The contract at SKY for example, they pay your Japanese taxes and your pay is net, you can also use that documentation to lessen or even eliminate your own country's tax liability depending if they do have a non double taxation agreement with Japan or not, or if their rate is higher or not.
The contract at Air Japan is a commuting contract only, therefore you don't have tax liability in Japan because you are not a resident, when they had the 737 contract with ANK, it was also net pay and they took care of the domestic taxes but that contract is no longer available.

[airplanedriver]

Thanks alot for this, i too am trying to find out through some contacts, but not 100% certain about the rate and which part of the remuneration gets taxed... If the tax is gonna be more than 30% its very little money in Japan, also considering the fact that for Jetstar u would have to pay for the type-rating course.

[airplanedriver]

Do u know or are u able to find out if this is an exclusive taxation for ANA or for expat pilots as a whole in Japan??

[The Dominican]

burnable gomi Dominican,

I know the guys on the ANA Wings contract are paying less than 10%.

A 10% rate is what the prefecture charges, it might be that their contract pays for all remaining tax liability in Japan, make sure that they clarify this with you since most of the ANA's contracts that are with resident status do pay your tax liability. Anyways this doesn't apply to JetStar, under this contract YOU are responsible for all tax liabilities in Japan.

[airplanedriver]

If the rate is 10%, wow, its a great deal!! I mean Jetstar, because u do a maximum of 70hrs a month, also around only 18 days on duty, and 10-12 days off per month. Housing given, which is adequate for a hotel room in Narita. If at 10%, u would comfortably make $12k, plus bonuses. Thanks for this info

[The Dominican]

Taxes in Japan

[airplanedriver]

According to this source:

Tax TIES: Japan - Income Tax | KPMG | GLOBAL

Non-Residents pay a flat rate of 20% annually on all earnings. Wonder if bonuses will also be taxed though!!

[The Dominican]

We finally arrived to a more realistic number, I had dinner tonight with two of our former guys who are at JetStar Japan now, what they said is that the company will deduct 30% but that they will get a return of about 10%, so an overall 20% or so according to a couple of their pilots.
The company is getting a lot of guys from a defunct airline in the EU right now, commuting conditions are 10 consecutive days off with commuting built into the company's time (adding commuting days) unorganized right now as to be expected from a starting company, don't believe the nonesense that the contract company is saying about 8 weeks of training, don't expect to be certified on the line in less than 7 months, good luck to all interested.

[oldhasbeen]

"Unorganised right now" ..... Come on compadre, we're talking about jetstar here. These guys have been operating in several countries for several years now and they are consistently the most disorganised rabble out there. Just ask our mates in Singapore

[The Dominican]

Just posting what the boys said compadre, I don't have a dog in this fight! But it was nice to see them and interesting to hear them trying to justify the move I guess that grass just comes in different shades of brown

[airplanedriver]

Thanks for this Dominican, i guess at this tax rate, its just not worth it, i mean getting around $9k in Japan, is crazy, nothing seems attractive anymore when ur taxed this much!!

[USMCProbe]

I was wondering if Jetstar was going to withhold national tax as I heard that Japanese companies do this. I believe the prefecture and city tax are paid by you out of pocket. Another 10%.On top of what Jetstar withholds.

[IFRFLIGHT]

Air Japan

Hello, I'm considering the position for Non-rated Captain with Air Japan on B767. Any one could give me some tips about the Company, rosters, bases, salary, life style with family...tks!

[Fratemate]

Any one could give me some tips about the Company....

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