Salary tax for representative director

Dear all,

I am about to start a K.K. together with a foreign company in Japan, where I will be the representative director and 50% shareholder. I am currently working on the business plan and trying to come up with numbers which will be close to the real numbers. My question is regarding my salary in the company, we (myself and the German CEO) decided already the amount, but I was wondering how much I have to add to that number, since I am sure, that like also in other countries, the amount the employer is paying is more than the one the employee actually gets. Okay, I am not an employee in that sense, but I wonder how this is handled.

Thank you very much for your support.

Income tax is paid on a national, prefectural and municipal level. The rates can be found here:
https://www.japan-guide.com/e/e2206.html

In addition, there will be major fees for pension and health insurance (almost 30% of the salary, but half is paid by the company, and there are upper limits) and a small fee for unemployment insurance. This is assuming you will enroll into Employees' Health Insurance System and Employees' Pension Insurance System which I think you are supposed to, assuming you will be living in Japan.

In addition to above, you can try out the 'Payroll in Japan Calculator', which will give you rough idea.
http://www.htm.co.jp/calculators-monthly-payroll-japan.htm

Or you can use the google spreadsheet that someone made.
https://docs.google.com/spreadsheets/d/1zAhIo-lJggqlsc1OZNn8_m9mj7ts0G...

Thank you so much, but this information is more for the difference between the gross and net salary, which i am very familiar with, since I already live and work 10 years in Japan.
I would like to know if Imwe decided to give me a 12 Million gross salary for the start, I would like to know how much I have to add to this number to know the actual company expense for my calculations.

I am also not sure if I am able to be automatically in the national health insurance system. I have heard something that as the representative director I need to get this privately.

I would like to know if Imwe decided to give me a 12 Million gross salary for the start, I would like to know how much I have to add to this number to know the actual company expense for my calculations.

The 50% for social insurance (pension and health), which is about 15% of the salary.

I am also not sure if I am able to be automatically in the national health insurance system. I have heard something that as the representative director I need to get this privately.

I think it depends on the size of your company and your work hours. If you primarily work for the company, then you have at least the option to enroll in the Employees' Health Insurance System and Employees' Pension Insurance systems. It may even be compulsory. If you are a director mainly in name, then you may not be able to enroll.

As representative director/owner you probably do not incur the unemployment insurance cost (in my case I am not entitled to it, but my staff are).
For the National Health Insurance, as you company size/turnover is high enough there is a legal requirement to enroll in the a pension/social insurances scheme.

If you have been living/working in Japan 10 years that should be pretty basic stuff. If you are unsure, employ an accountant - very handy.

As a new representative Director in Japan, I was told i am not eligible for unemployment insurance. May i know why and how does this work?

Understanding that I am not eligible, my company would still like to pay me in cash. Would they be paying that to me now or when I am unemployed? Every answer helps!

Thank you.

to Joe P
company is a "hypothetical" personnel. it needs at least one "real" human who is responsible for company's behaviors.
the name, representative Director, means you are that person. since you are responsible for everything about the company, you are not an employee. you are an employer. your position is not protected by labor law.

to OP
taxation is same to employees. I think it is better that your company hires an accountant.