New Tax invoice (JCT) Oct 2023

Hello everyone,
I am a full time engineer in japanese company. I was thinking of side husstle by doing engineering drawing jobs. My current annual gross income from main job is below ��4,000,000. And company deducts tax for this income.
Do i have to file a additional tax as long as my total gross income(main job + side husstle) is below ��10,000,000. I am unknown about tax system of japan please give me suggestion.

As far as I know, it looks like a few things are mixed up here.

This 10 million yen per year applies to �gbusiness revenues�h, referring mainly to independent business owners, independent service providers, and freelance workers, and if you are a full-time salaried worker, this threshold does not apply to you.

In case of salaried worker (with the employer doing the taxes on your behalf), if your �gother�h income exceeds 200,000 yen in a year, you need to do your own tax filing, combining your salary income and your other income.


If you start some work on the side, and �gother clients�h of yours want you to sign up for the �ginvoice�h system, so that you register as a �gregistered business�h paying consumption taxes and your clients can deduct the portion you pay, you might have to, but that means you�fd need to sign up as an individual business and this can complicate things a bit.

But in the first place, you�fd need to check with your current employer if it is ok to take up a side job.

I should have been a bit more precise in my writing:
- Once your income other than salary exceeds 200,000 yen in a year, you need to do the �gincome tax�h filing.
- The �ginvoice�h system applies to independent business owners/freelance workers and the �gconsumption tax�h obligations.

General rule - taxable income - requires declaration. Your income is already 4M, so any extra income needs to be declared.
If you incorporate a business (lots of things to get right there), then you have taxes even if you earn zero or make a loss (70,000 yen per year minimum). Consumption tax registration is something else again, along with enrolling yourself in the social insurances (pension et al). You could do unincorporated/sole proprietor, but companies may be wary of contracting with you for work that someone that isn't a GK or KK entity.
If you don't know how to set up and run a business (different from being a simple employee), get some professional advice. I have 30 years of doing that, so for me it's pretty easy, plus I employ some good advisors.

The "invoice" system applies to sole proprietorships and freelancers, and they are required to pay consumption tax. �¨
I am a sole proprietor/freelancer, but as I am still a tax-exempt business, the "invoice" system does not apply to me, and I am not liable for "consumption tax."
If you submit a consumption tax simplified taxation system selection notification form and an application for registration of a qualified invoice issuing business to the tax office and change to a taxable business, the "invoice" system will be applied and you will be obligated to pay consumption tax. To do.
More than 90% of taxable businesses have already submitted applications for registration as qualified invoice-issuing businesses, but the registration rate for tax-exempt businesses is low.
(I also signed an objection to the invoice)
Instead, the business partner may ask you to reduce the amount, or the transaction may be canceled.
Since transitional measures are in place for six years, there is a possibility that the company will change to a taxable entity during that time.
By the way, I file my final tax return by myself every year while consulting with the tax office.
Tax accountants are knowledgeable about tax returns (including invoices), so if you are unable to file your tax return yourself, please consult with a tax accountant.

By the way, consumption tax is not levied when trading with foreign countries (exemption from taxation).
https://www.nta.go.jp/taxes/shiraberu/taxanswer/shohi/6210.htm#:~:text...
If you sell something (services, goods, etc.) to a company with sales of 100 million or more two years ago, if you don't have an invoice registration number consisting of T + 13 digits, the company will not be able to deduct it as an expense.
Therefore, when doing business with large companies, it is more advantageous to register invoices.
On the other hand, if you only do business with general consumers or small businesses, not registering invoices probably won't be a problem for now.