Income Tax

[dimwit]

Just finishing preparing my income tax here and I am wondering how many of you do your own taxes?

[gomichild]

I do my own. And I usually get money back. Compared to Australia, income tax is a lot more reasonable here.

Plus the people at my local tax office try their darndest to get as much money back for you as possible. They even sent my forms to me this year with an English explanation booklet.

[kamome]

The Japanese individual income tax rates are considered low in comparison to other countries, but its corporate tax rate is among the highest in the world.

[dimwit]

Having had to go into the tax office yesterday to get something explained to me and today having them phone me back to tell me they made a mistake and I need to go back again doesn't give me much confidence in their understanding of the system!

[FG Lurker]

The Japanese individual income tax rates are considered low in comparison to other countries, but its corporate tax rate is among the highest in the world.

Yes, but most small-to-medium-sized companies run permanently in the red...on paper anyway.

There is some sort of minimum tax they have to pay even though they "lose" money, but it's not much overall.

[canman]

According to him if our company is in the red for two years and our net profit is less than one million yen a month, we can stop paying the sales tax. Now please don't jump all over me, that is what my accountant said, and I have to go on his word. He told us as well it is much better to stay in the red for a while. Unless we wanted to borrow money, then it gets a little dicey. But I think generally the income tax is quite fair compared to Canada's.

[kamome]

There is some sort of minimum tax they have to pay even though they "lose" money, but it's not much overall.

Yeah, it's called an enterprise tax, but until recently, the companies that were permanently in the red didn't have to pay it. But a couple of years ago, the law was changed to add other factors in the calculation of that tax. Now, all companies have to pay some amount of enterprise tax even if their income is negative. The purpose was to raise revenue on the local level, since loss leaders were avoiding paying any tax to the locality they were situated in.

[kamome]

According to him if our company is in the red for two years and our net profit is less than one million yen a month, we can stop paying the sales tax. Now please don't jump all over me, that is what my accountant said, and I have to go on his word. He told us as well it is much better to stay in the red for a while. Unless we wanted to borrow money, then it gets a little dicey. But I think generally the income tax is quite fair compared to Canada's.

Did you just start your company? If so, you should be exempt from consumption tax for the first two years of its existence even if you make a profit.

[This is a pen]

a lot more reasonable here.

Plus the people at my local tax office try their darndest to get as much money back for you as possible. They even sent my forms to me this year with an English explanation booklet.

Yeah, I do my own too, Not all that hard.
The English Book they sent out was a Joke,
It's Easier if you do not use it.
Who ever wrote the English Book was an idiot and needs to take a class or two in layout design.

[Ketou]

I'm still on the fence here.
Does the refund outway the kokuminkenkohoken payments?

[This is a pen]

I'm still on the fence here.
Does the refund outway the kokuminkenkohoken payments?

Depends on how much you make, and how many deductions you have.

[aquamarine]

Income tax here is a complete joke. OOooh!!! 3-7% per paycheck! HOW WILL I SURVIVE!??!

Try living in Canada my friends, 36%