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Self employed on work holiday visa. Tax 2018/6/8 17:54
Hi guys,

I wanted to ask if self employment is possible on work holiday visa? I assume that it is, since it is not excluded anywhere.

If I am correct - how to become self employed, and how much taxes+pension will I have to pay? Do I have to register this fact anywhere, or I can just fill out tax form next year and pay all the taxes + pension?

AFAIK I would get into 20% of tax, since I am allowed to stay only one year in Japan. I want to stay longer if I will have visa renewal opportunity, but initially it's just one year.
Pension would be around 14-16k YEN per month, but I assume that I can get a refund if I will not get another visa?

I need to add that my contract will be outside of Japan, so this AFAIK it's a foreign income remitted to Japan. My contractor has no interest in me being in Japan either.

Thanks in advance!
by Raav  

Re: Self employed on work holiday visa. Tax 2018/6/9 06:44
I need to add that my contract will be outside of Japan, so this AFAIK it's a foreign income remitted to Japan. My contractor has no interest in me being in Japan either.

So you don't actually have a job in Japan and are not intending to work in Japan or being paid by a Japanese employer/company. The working holiday visa allows you to stay up to a year on holiday/tourism (rather than 90 days or 180 days for a couple of countries), work in Japan while you are on holiday, and your non-Japan job doesn't count (it's not "working in Japan").
by JapanCustomTours rate this post as useful

Re: Self employed on work holiday visa. Tax 2018/6/9 23:21
So does it actually mean that I am not legally allowed to work remotely on WH visa?

I understand that the purpose of this visa is to travel, and job is additional thing that should help me survive here. And remote work is perfect for this, since I am not bound to any city in Japan.

If I want to pay taxes, will there be any issue with that?
by Raav rate this post as useful

Re: Self employed on work holiday visa. Tax 2018/6/10 18:44
You are employed by someone overseas, but your real issue is about tax residency. Does your country have a double taxation agreement? If not, then after you are in Japan 1/2 year you become liable for tax locally on your world-wide income plus your home country - it is something you should get professional advice on if you are in doubt.
Depending on earnings you can be libale for tax of more than your actual income! In my case a few years back I would have been paying 42.5% in one country and 33% in my home country (75.5% income tax) so it was something I looked at pretty carefully. For Japan, similar rules apply even now as a resident, I would normally be liable for tax at "home" plus Japan, but there are tie-break rules under the international tax treaty so I just pay in Japan.
by JapanCustomTours rate this post as useful

Re: Self employed on work holiday visa. Tax 2018/6/11 19:56
Country of my tax residency has the agreement about avoiding double taxation with Japan. So I think that I don't have to be worried about that, but I will double-check on this. Thanks for a hint!

And do you know if I have to register in any way as a freelancer in Japan, or I can just pay the taxes and pension at the end of taxation period?
by Raav rate this post as useful

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