Job Discussion Forums

GreenHorse · Joined: 07 Nov 2017 Posts: 14

I know Japan is very picky about what you can do under certain visas, and that apparently working as an ALT is a different category than in an Eikaiwa, the latter of which allows you to teach private lessons but the former does not.

My question is, can you derive income from online teaching to people around the world (I'm thinking Italki, for example) without running astray of visa regulations? Would you need to report that income in Japan, or your home country?

Some people have stated that they need a side job sometimes, so I want to build one up before I go over there.

Sorry, last question for a while!

Maitoshi · Joined: 04 May 2014 Posts: 718 Location: 何処でも

I think side-income over the Internet would be just fine as far as visa status is concerned. To stay on the right side of the law, one ought to report any and all income to any government entities to which one has the duty to report. As an American, this means reporting to both the US and Japan, though the actual taxes would only likely be paid to Japan if you qualify for the foreign income tax exclusion, as most American expatriates usually do. Some of the more enlightened nations (i.e. the UK) don’t even require nationals living abroad to report income earned while abroad.

marley'sghost · Joined: 04 Oct 2010 Posts: 255

taikibansei · Joined: 14 Sep 2004 Posts: 811 Location: Japan

kzjohn · Joined: 30 Apr 2014 Posts: 277

If you're not yet a tax resident, then income that's deposited in your overseas acct should stay there. If you repatriate it to Japan (regardless of amount, and even tho you are not yet a tax resident), it becomes taxable.

If you are a tax resident, then it should be reported.

**

I've been reporting passive income for quite a few years. It's not difficult at all, you just have to know what lines to use and how they break it down (which the tax office helps with), and then send in the relevant paperwork--e.g., monthly or year-end statements.

The Transformer · Joined: 03 Mar 2017 Posts: 69

taikibansei · Joined: 14 Sep 2004 Posts: 811 Location: Japan

taikibansei · Joined: 14 Sep 2004 Posts: 811 Location: Japan

The Transformer · Joined: 03 Mar 2017 Posts: 69

kzjohn · Joined: 30 Apr 2014 Posts: 277

taikibansei · Joined: 14 Sep 2004 Posts: 811 Location: Japan

I'd agree with ¥200,000/yr being the threshold of significant. More to the point, both you and I have 永住権, and so are permanent residents in that sense as well. For people like us, following all the rules to the fullest extent possible is in our best interest.

For somebody here mid-term with no intention of staying longer...yeah, I'd say that ¥200,000/yr is the threshold of what I would report.

kzjohn · Joined: 30 Apr 2014 Posts: 277

There are some recent comments elsewhere that might be relevant to this situation. (scroll down a lot)

The Transformer · Joined: 03 Mar 2017 Posts: 69

That thread on reddit makes a good point that there are two sides to this: the "income" side which is overseen by the tax agency, and the "activities" side which is overseen by immigration.

So to stay on the right side of the law, first and foremost, you don't engage in any activities when you're in Japan beyond what your visa allows you to do (where the income is generated or paid into is irrelevant). Then you follow the necessary procedures regarding declaration of income and payment of tax, in Japan and/or in your home country.

I was under the impression that you can engage in "other activities" beyond what your visa authorizes, as long as the income generated doesn't exceed your "main" source of income authorized by your visa. If your second source of income were to become your main source of income, you'd be required to change visas to the visa category in which it falls under. I may be wrong on this though.