pension ideas for high income individual

[kenosecon]

Yes, I checked with tax office. You can ask for an appointment. No problem.
You need to save all your receipts but that is also changing. Dividends are not classified as capital gains I think.

But the business is "consulting" I'm declaring the capital gain separately of course.

You all seem to be mistaken one point. A business is a business doesn't matter how small.
If you teach on the side to private students that is a business and it applies for the business tax.
You don't need to register for anything. It's your legal right.

If you check my second comment I say:

"You need to create a side business that gives you a recurrent income"
anything works, youtuber, marketer, consultant. Even if you get 100 yen a month.
who knows maybe in the future you start selling and get rich out of the business you create.

old but still valid info on how to fill the taxes like I did:
https://web.archive.org/web/20150705180 ... intax.com/

[seb]

I think there was confusion as to where the money comes from. At the beginning people assumed the money came from a salary which is much harder to deduct anything from.

As a freelance (kojin jigyo), this is the status with the least basic exemptions. But you can indeed declare lots of expenses (I declared my home office as 10% of rent based on the area of my office, phone bills, internet, and lots of furniture and equipment).

About "the tax office guy told me it's ok". The tax office guy could lie to you and it would still be your fault. I know 2 people who made the mistake of asking a non basic question to the tax office and then got charged penalties during an audit because that answer was wrong. Using an accountant can work as an insurance.

I have established my company this year to further reduce my tax burden. I'll be looking to pay rent as an employee perk, but I suppose I will need to sign the contract as the company being the renter for it to work.

[kenosecon]

most money came from salary. And a little out of the business.

same as this explanation here:
https://web.archive.org/web/20150705180 ... intax.com/

btw Seb-san, kojin jigyou do not get audits unless they have super high income.

I think your friends had companies instead.

regards

[kenosecon]

most money came from salary. And a little out of the business.

same as this explanation here:
https://web.archive.org/web/20150705180 ... intax.com/

btw Seb-san, kojin jigyou do not get audits unless they have super high income.

I think your friends had companies instead.

regards

[RetireJapan]

btw Seb-san, kojin jigyou do not get audits unless they have super high income.

This is incorrect. My wife is a sole proprietor with a low-ish income, and she has been audited.

[RetireJapan]

Also, my understanding based on conversations with our accountant is that you cannot use expenses from a side business to write down your salary income. This is something I would have liked to do with RetireJapan but was discouraged from doing.

[Kanto]

Also, my understanding based on conversations with our accountant is that you cannot use expenses from a side business to write down your salary income. This is something I would have liked to do with RetireJapan but was discouraged from doing.

I would really encourage OP to get a tax lawyer to review his plan.

I also am afraid someone might see this thread in the future and think this is a great idea that should be replicated.

No government takes tax fraud lightly.

[kenosecon]

did you take 5 minutes of your time and check the link I pasted? It even has a step by step guide.

I can see tax consultants wanting to work less advising against this though.

[Kanto]

did you take 5 minutes of your time and check the link I pasted? It even has a step by step guide.

I can see tax consultants wanting to work less advising against this though.

A five-year-old guide, on a defunct website does not fill me with confidence.

Their disclaimer about seeking professional advice is valid though.

[fools_gold]

most money came from salary. And a little out of the business.

same as this explanation here:
https://web.archive.org/web/20150705180 ... intax.com/

btw Seb-san, kojin jigyou do not get audits unless they have super high income.

I think your friends had companies instead.

regards

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