Grrrml.
I’m angry and even though months and months haven’t passed yet I feel the urge to post.
This is something that people working in Japan should better know before they try to be out of the order punks like me so here we go:
If you have read this blog before, you know that after 3 years of teeth-grinding work I have quit my current job for a relaxing 2 month summer break.
And now after my little travel and general refreshment I will – as planned, re-enter the company on the first of July.
All nice and dandy if it weren’t for that letter from the tax-office yesterday: Income Tax? Me?! A mistake, surely. Not.
Big surprise, 都民税 (tominsei, Metropolitan inhabitant tax) is naturally calculated and automatically deducted from your income .. and here comes the funky bit, is also calculated *per year*, in advance.
In other words, after a full year of working in Japan your tax-rate will be set – and even if you then quit your job on the coming 2nd of January, you will still have to pay.. drumroll..
A FULL YEARS TAX! OMG! What?!
Wow! Wow! If you don’t quite believe it (as I did), here’s an excerpt from the homepage of Yokohama about taxation (this is concerning ex pats but applies to my case as well)
Income tax is payable for each calendar year,however, inhabitant tax for the calendar year is calculated based on taxable income for the preceding calendar year. Moreover,inhabitant tax assessed against residents in Japan as of January 1 of the taxable year,and, therefore,if an expatriate terminates his assignment in Japan and leaves Japan on,for example,the second of January, he/she will be liable for the entire inhabitant tax for the year of his/her departure from Japan based on the taxable income for the preceding year regardless of only two days of residence in Japan for the year of departure.
I think it’s all the crazier that this still applies, even though you are not actually living in Japan anymore.. where’s the sense in that now!?
small update: some more research reveals that this rule also applies if you (or any Japanese citizen for that matter) actually *die*. So we got that covered.
Income tax is usually 20% of the salary for a foreigner in Japan which is, at least compared to most European countries (Germany 50%!!), beautifully low.
Yet, without any salary it suddenly looks like a big chunk of cash ( especially combined with rent, living expense etc.)
I guess this is yet another measure to keep things running in a nice and straight line for Japan: if you have a job you better keep it, until the end of your days – seems the motto here. Taking time out? Crazy nut!
Maybe you already know but if you rent a flat in Japan, you usually give the landlord a “present” (yes, as in it won’t come back when you leave!) of 2 months rent – similar concept.
So there you are, another useful bit of info about living in Japan for you.
I really should write a lot more.
Oh! Before I forget, this applies for health insurance as well by the way – another letter I got today. <sniff>
God bless it’s a tad lower but still – my little break surely cost me.
So until next time I leave you with a fitting Japanese proverb I found:
“The nail that sticks up gets hammered down” (Deru kugi wa utareru.)
Lovely.
PS: Thinking more of it now I wonder if all this is one more explanation for all the homeless people I see around.
If you happen to get fired early in the year, I suppose this madness could really give you the push over the edge…