RetireJapan

Hello,

I am resigning from my seishain position and switching to freelance.

For those experienced in freelancing vs full-time employment, what changes am I facing? Anything I need to keep in mind?

Things that I have thought of are:

- income tax/resident tax will not be taken from my paychecks automatically, I have to calculate them myself
- medical insurance will need to be paid by myself
- pension payments paid by myself

Anything else I should be aware of?

Thanks for any advice!

ps- respectfully, this change from seishain to freelance is definitely happening, so no need to try to persuade me to stay as seishain

I would say: Can you issue qualified invoices? ^^'

William wrote: ↑Fri Apr 05, 2024 5:34 am I would say: Can you issue qualified invoices? ^^'

If you mean: have I registered as a sole proprietor? Then, yes, that registration has already been done.

cocacola wrote: ↑Fri Apr 05, 2024 2:25 am - medical insurance will need to be paid by myself

You should probably be able to stay with your current health insurer for a few months ("任意継続"), which is somewhat cheaper as you'll be paying the employee portion (AFAIR) but you'll have to apply for that yourself.

CluelessToshika wrote: ↑Fri Apr 05, 2024 11:36 am

cocacola wrote: ↑Fri Apr 05, 2024 2:25 am - medical insurance will need to be paid by myself

You should probably be able to stay with your current health insurer for a few months ("任意継続"), which is somewhat cheaper as you'll be paying the employee portion (AFAIR) but you'll have to apply for that yourself.

Oh, that's good to know! I will get more details from the company admin. Thank-you.

You won't get the max ¥2M Employment Income Deduction anymore, but on the plus side you'll be able to deduct "necessary expenses".

If you quit before the end of May they'll probably deduct the rest of your residence tax until then from your final salary.

cocacola wrote: ↑Fri Apr 05, 2024 5:41 am If you mean: have I registered as a sole proprietor? Then, yes, that registration has already been done.

Not that. Look up インボイス制度.

adamu wrote: ↑Fri Apr 05, 2024 5:14 pm

cocacola wrote: ↑Fri Apr 05, 2024 5:41 am If you mean: have I registered as a sole proprietor? Then, yes, that registration has already been done.

Not that. Look up インボイス制度.

Yes, this new invoice system will be important in dealing with your customers, assuming your customers will be companies and not individuals.

William wrote: ↑Sat Apr 06, 2024 12:51 am

adamu wrote: ↑Fri Apr 05, 2024 5:14 pm

cocacola wrote: ↑Fri Apr 05, 2024 5:41 am If you mean: have I registered as a sole proprietor? Then, yes, that registration has already been done.

Not that. Look up インボイス制度.

Yes, this new invoice system will be important in dealing with your customers, assuming your customers will be companies and not individuals.

Oh, boy, thanks guys for the heads-up on this invoice stuff. I will do additional research on it.

Are your clients based in Japan or overseas? That affects whether you might need to charge sales tax and whether you need to bother with インボイス制度

Yossarian wrote: ↑Sat Apr 06, 2024 11:25 am Are your clients based in Japan or overseas? That affects whether you might need to charge sales tax and whether you need to bother with インボイス制度

Good question. I am actually starting a goudogaisha soon, but at first, I will be going freelance.

While I am freelance, my clients will be in Japan. However, for my company, the clients will be from overseas.

When I am working with Japanese companies, I will have to do the インボイス制度, and charge the domestic sales tax. Would that mean that, for my company and international clients, I will not have to bother with either of those? I was under the impression that I at least would have to charge them sales tax.