Job Discussion Forums

[BenJ]

This has been mentioned before but I am interested if anyone has actually done this (rather than heard about it).

Like many things in Japan, I am getting two different stories. My girlfriend is working on a WHV and being taxed 20% each month. I was told by a couple of people (a Nova recruiter was one of them) that this is only for workers who stay less than a year - if in fact you work for a year or more, you can claim that tax back (excluding the 5% standard income tax). For this reason, Nova for example would not have charged me 20% if I had worked for them with a working holiday visa.

However, my girlfriend's employer's accountant is telling a different story and that it is not claimable.

Has anyone ACTUALLY got money back under a WHV? This is a lot of money after a year - hate to think we can't.

[PAULH]

[BenJ]

I am referring to the income tax. I don't know how much it is exactly but it is around 5% for a work visa. 20% income tax for a WHV.

I dont know about Nova exactly, i dont work for them, neither does my partner. My reference to Nova was that when I went to a job interview for them, I queried the fact that they would hire people on a WHV but still only deduct the same income tax from their pay that they did for those with sponsored working visas. The reply was that they assume you are staying for the year contract and therefore dont need to pay 20% (i.e. you will renew your 6month visa at least once).

[PAULH]

Ben

I wont argue with you on the tax rates as it gets quite complicated and rates vary depending on your level of income, what deductions you are eligible for (it changes if you have a spouse, kids and pay medical insurance for example)

here is a good little site that explains Japanese taxes- i will leave you to do the math.

http://www2.gol.com/users/jpc/Japan/taxes.htm#Rates

With the WHV Im inclined to think what they take out is on a 'case-by-case' basis for each company and there is no standard policy of 20% deducation across the board. I would think that for most people six months on a working holiday visa is not really enough to 'break even' on your expenses without delaing with paying higher taxes, so with a NOVA income they don't charge at a higher rate. I dont work for NOVA so my guess is as good as yours.

Alot of it depends on the whims of the individual school owner, but i think if you file a tax return, have paid too much in taxes you are entitled to a return, but you have to file a tax return in the first place if you want a shot at getting any money back.

[BenJ]

by all means argue with me Paul! I really have little idea - just putting forward what I think I MIGHT know to see if it close or not.

My suggestion of 5%ish was just going on what I get deducted from my current pay and what I have been told by others. From that site you gave me, it is all a little more complicated, which tax always is I suppose.

I guess we:ll have a stab in the dark come end of financial year and see what happens.

[ryuro]

hey guys,

Thought I'd throw my 2 yen in on this. The average tax rate for someone on a 'regular' working visa is aorund 4-10% (of course it can vary).

The tax rate for a WHV is 20% and if you change over to a regular visa rather quickly (which is what most companies like NOVA do) then you should be able to claim back what you paid over that. This is often why companies like NOVA don't start taxing you at the 20%, because they know they're going to change it over to a regular work visa and then your tax deductions would have to change. It's a lot less hassel for them just to start taxing you at 5% (or whatever the rate might be).

However, the longer you wait to change the visa from a WHV to a regular working visa- the more difficult it may become to get anything back and the amount you get back may be less.

Why? I haven't a clue. Japanese bureacracies are FAR WORSE than any others I've had the misfortune of encountering. So the outcome of a claim could very well boil down to the mood of the tax official and the position of the moon that month- who really knows how they decide these things?!?!?! It's ridculous sometimes- it was far easier for me to obtain a work visa than a Japanese DL- go figure!?

Anyway, I've known plenty of people in this situation and the best advice is to get the sponsoring company to change it from a WHV to a regular visa ASAP! If you work ONLY and a WHV while you're here, chances of getting anything back are proabably nil.

Oh, and never take "It can't be done" as a final answer from any Japanese official. To me it sounds like the accountant at the company is just lazy- he should at least check SPECIFICALLY on your situation. Often you'll find that people in Japanese companies (and the governemtn) who should be abreast of the labor rules and regulations- BECAUSE IT'S PART OF THEIR JOB- are ABSOLUTLEY CLUELESS and are just working from the "we've never tired that before, so it must not be possible" mantra. In many cases it can be done, but they don't know about it, or simply don't want to hassel with it- remember you're in Japan- don't upset their 'wa' by asking them to actually do something that's not in the handbook/procedures manual- GASP!

Hope some of this has been helpful.

ryuro

[BenJ]

thanks mate. Unfortunately the WHV is not able to be changed as my partner does not have a degree.

As you say though, there are so many differences of opinion here about nearly everything that we may as well give it a go come end of year.

[G Cthulhu]

okay, I've actually done this, so I'll pipe up :)


Yes, the tax rate for a WHV is 20%.

This is a *withholding* tax rate - the assumption is that you'll be moving around and working, not staying in one place (naughty-naughty! ;> ) so, in theory, they can't predict what your end-of-year gross will be.

When you finish your job your employer is *supposed* to re-calculate your tax and apply for a refund as 20% is always too high. If the employer doesn't do the refund then you can apply yourself, although this is not for the faint-hearted.

I worked for two employers under WHVs and one did the refund for me and the other didn't. Pester them to do it. If they refuse then demand they give you a tax certificate on your last day. You can't get a refund without one.


Short version: yes, you can get most of the tax back. I did.

[BenJ]

Thankyou - this is exactly the first-hand experience I was after.