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Taxes on Monthly Salary 2014/8/11 16:40
Hi,

I am getting a job opportunity in Japan (Tokyo) and as per the contract, I would be getting 500000 Yen per month (after deducting the income tax). Apart from income tax, what taxes would I have to pay after moving to Tokyo and do you think it would be a good salary for a family of four (for a couple and two kids. Our housing and other utility bills would be taken care of by the company.
by niki (guest)  

Re: Taxes on Monthly Salary 2014/8/11 18:45
Resident's taxes (prefectural and city). Also is the company covering health insurance (either the company's own or national health insurance) and the pension scheme contribution?

I don't know how old your children are. If they need to attend an international school in Tokyo, that would add to the expenses.
by AK rate this post as useful

Re: Taxes on Monthly Salary 2014/8/11 19:54
Are you sure the 500k yen a month salary is afer income tax and not after paying for "social security"? I have not encountered any companies that present the numbers in such a way.

Anyways, with 3 dependents, your actual income tax is considerably less than someone who is single. The "social security", which includes health insurance, nursing insurance (which is zero in your case), pension contribution, and unemployment insurance is rather substantial.

Your transport allowance will also entitle you to some tax waiver but it's not significant so perhaps you can leave it out of the equation. The municipal tax will not be applicable to you in the first year also.

All in all, you should be looking at around JPY 70,000 to JPY 75,000 in social security tax each month. That leaves you with JPY 425,000 a month.

Whether that's enough for you and your family, I do not know. There are to many factors involved.
by hitori rate this post as useful

Re: Taxes on Monthly Salary 2014/8/12 13:13
Generally when a package is framed in such a way (tax already deducted, housing, utilities paid, etc), the package would be an intra-company transfer, so it will include medical, etc and also schooling for children.
In these cases, the figure named is usually take home pay with everything deducted.

However, double check those details first.
by Sandy (guest) rate this post as useful

Re: Taxes on Monthly Salary 2014/8/13 01:50
Just like others, I find it a bit weird way of expressing your income. What is important to realize is that any non-financial benefits will be taxed (for example, roughly 10% of your rent will be added to your gross salary). If the company has all this figured out, then the local accounting can easily tell you what is your net salary and there's no reason to tell you a value with only some of the taxes deducted. I would strongly suggest to ask for a detailed breakdown based on your concrete situation rather than trying to figure it out yourself (that's also what I did - a short meeting with our payroll person helped to clarify all questions and at the end, I had a detailed breakdown of all deductions involved specifically for my family situation).

Furthermore, depending on the length of your stay and your home country, there are different ways especially for pension, unemployment and health insurance (for example you can be exempt in Japan if you prove that you're paying your pension insurance in your home country). So it's a good idea to also check how the company (or you) will take care of your obligations in your home country.

Whether 500k is enough or not depends a lot on whether this is really disposable income or not and then based on your lifestyle. Will you be buying a car? Do you plan to travel a lot by around Japan? Do you usually eat out or cook at home? Is a nice piece of beef your usual dinner?
by just a guest (guest) rate this post as useful

Re: Taxes on Monthly Salary 2014/8/13 20:48
Thank you everyone for your responsesand suggestions. Monthly 500,000 is the one I just calculated through japanese taxation website. They have a calculator in the end of their page where they have some mentioned the taxation details. The whole page is in Japanese so, it was difficult for me to get the whole information. however, I just got the rough estimate of my monthly income through that calculator.
by niki (guest) rate this post as useful

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