Side business, side job ( Fukugyo = 副業 ) and tax and law in Japan.

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In the case a foreign national is salaried worker, if she wants to operate side business, side job, she needs to know about tax relating to side business.

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She may want to earn money by posting advertisement on her website.
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She may want to earn money by stock trading.

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She may work as part time worker at another company. =  employment income (kyuyo shotoku = 給与所得)

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She may start real estate investment and receive rent from her tenant. = real estate income.
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She may want to start English language school at her residence.
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In general, in the case of salaried worker, amount of earnings from side business ( that is not employment income and retirement income ) is not over 200,000 yen per a year, she does not need to file final tax return ( kakutei shinkoku ).
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It means that if category of her side business is employment income, even if amount of her income is less than 200,000 yen per a year, she needs to file tax return by herself.

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( According to Income Tax Act article 121 )

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In the case she makes website and display advertisement of a company and receives advertisement fee from advertiser, her income is “miscellaneous income” ( zatsu shunyu = 雑収入 ).
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And if her side business is stable and can earn profit continuously, her second business is ” business income “.
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Either of miscellaneous income or business income, she can deduct amount of necessary expenses paid from her earnings.
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1.  Assumed she earns 300,000 yen from her advertiser annually.
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2.  She spends 110,000 yen to earn 300,000 yen.
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( For example, she may rent server, purchase back link, pay fee for Google, pay rent of her office, electricity fee, telephone fee. )
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In the case she operates her side business in her residence ( her rental apartment ), she may sum up  a part of rent as necessary cost ( Keihi ).
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3.  300,000 yen – 110,000 yen = 190,000 yen.
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This is below 200,000 yen.
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So, she does not need to file final tax return as for her side business.
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She can not sum up income tax and resident tax as necessary expense.

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In order to sum up as necessary expense, she needs to prepare proof, like receipt.

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In the case, her main job is salaried worker and her second job is part time worker ( = salaried worker ), she needs to file final tax return by herself.
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She prepares two certificate of tax and withholding tax ( Gensen choshu hyo = 源泉徴収票 ) from her both o f employer and file tax return to tax office in Japan by mid of March of next year.
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Sample of certificate of tax and withholding tax

tax slip, gensen choshu Japan tax
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In the case a foreign national is working as salaried worker in Japan, if she wants to engage in another job, she needs to know about relevant law.
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