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Do all the richest Japanese really pay 45% income tax?

Mary27

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Is it really true that all the richest Japanese pay 45% income tax?
 

johnnyG

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Actually, a bit more: (for the 18m/year threshold)

"40% of taxable income exceeding 18 million yen plus 4,404,000 yen" (plus local taxes)

What's wrong with that?
 

Mary27

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Nothing wrong with that at all. Be nice if Bill Gates and company were required to do that.

Does Japans IRS equivalent have much problem collecting from these people?
 

Uncle Frank

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I notice if you win the lottery in the US , they take around 30% or more depending what state you live in. The US tax code has a zillion loopholes for the rich to take advantage of to get out of paying their fair share.
 

Mary27

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I guess that happens when the rich and powerful are making and writing the laws?
 

Uncle Frank

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Lately , if they manage to ever agree to pass something , the Prez vetos it. Almost 8 years of petty bickering and the future looks grim for the next election so far.
 

Mary27

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Lately , if they manage to ever agree to pass something , the Prez vetos it. Almost 8 years of petty bickering and the future looks grim for the next election so far.
AGreed. But what is the solution? An all powerful king? Decisions would be made lightning fast without the bureaucracy...but the danger of having an all powerful leader without checks and balances has been demonstrated many times in history. Has it ever been successful in recorded history?
 

ishibai

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AGreed. But what is the solution? An all powerful king? Decisions would be made lightning fast without the bureaucracy...but the danger of having an all powerful leader without checks and balances has been demonstrated many times in history. Has it ever been successful in recorded history?

I remember making around 18 million in Japan in 2000. I was working as a professor and head of department at the university, plus I was teaching 6 extra classes at universities part-time. I was hit hard, but I had an accountant who managed to save me a great deal. I am sure the super rich making 50 million a year do not pay 50% as their accountants manage to do some really great things.
 

Glenski

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Mary, I don't understand that last question. You came here with some information about rich Japanese paying taxes, and several posts later you ask whether Japan has an IRS.

what? How the heck did you imagine those rich people paid taxes?

Ishibai,
Why on earth would you warn Mary about tax collectors like that? She hasn't given any indication that she did anything wrong.
 

ishibai

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Mary, I don't understand that last question. You came here with some information about rich Japanese paying taxes, and several posts later you ask whether Japan has an IRS.

what? How the heck did you imagine those rich people paid taxes?

Ishibai,
Why on earth would you warn Mary about tax collectors like that? She hasn't given any indication that she did anything wrong.

I wasn't warning her. I was warning everyone. Luckily I now make 300.000 USD and I don't have to pay a penny in tax, not a cent and totally legal. If I move back to Japan, it will be something I will need to get used to again. Taxes were never really an issue for me as my accountant dealt with those things and did a very good job. I would pay less tax than most of the part-timers and I was making way more than they were. The #1 rule in Japan is, and I cannot stress it enough, is get a great accountant, the more expensive the better, it will save you in the long run. And rule #2 is pay your taxes if you are there for 5 years or more or they will get you, they will get you so bad you will want to leave. Rule #3 is make sure you pretend not to speak Japanese when the tax people question you, communication will be at a stand still and you won't be backed into a corner. I was lucky as my Japanese was really bad, so I did not even have to pretend haha!
 

Glenski

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I wasn't warning her. I was warning everyone.
An odd response because Mary didn't seem seem to be worried for her own sake. More like doing research out of curiosity.

Nobody here cares about your own income, ishibai. And your so-called experience here was not relevant to Mary's OP. That's what puzzled me.

And rule #2 is pay your taxes if you are there for 5 years or more or they will get you, they will get you so bad you will want to leave.
"Get you!?!" I know that is a trolling statement, but I just have to respond for the sake of other readers. Not only does that sound falsely Orwellian, but I've never heard of anything like it in the near 20 years I've been here, neither the "get you after 5 years", or making you want to leave.

Rule #3 is make sure you pretend not to speak Japanese when the tax people question you, communication will be at a stand still and you won't be backed into a corner. I was lucky as my Japanese was really bad, so I did not even have to pretend haha!
You said you had a good accountant, so there wouldn't have been the need to confront authorities by yourself. I doubt this story ever happened. Again, it's off-topic from what Mary originally asked anyway.

Mary, are you even in Japan right now as an employee somewhere?
 

Mike Cash

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Nobody here cares about your own income, ishibai.

There is a certain "My name is Elmer J. Fudd, millionaire. I own a mansion and a yacht" repetitive tiresomeness about it, isn't there?
 

ishibai

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Glenski whether you believe it or not, it happened to a friend of mine. It wasn't even his fault the company he worked for was raided by the tax authority for not paying taxes and they got hold of the list of employees. They then went to the employees houses and my friends house at 10p.m. and started going through all his things. He ended up having to pay 5 million yen to the tax authorities. Before I had an accountant I went to the tax authorities myself and I found not being able to speak Japanese helped in not being able to ask questions, why did I go you might ask, I went to try to reduce my tax burden by myself as I had taught on my research day and gone through a certain threshold and made less money after tax than I would have made if I hadn't done the extra work, after that experience I got an accountant. I have heard the 5 year mark is when the tax authorities start to take things seriously regarding people who are not fully disclosing their income, I assume it is because they know those people are going to be sticking around and it might be worth starting an investigation.

Mike Cash,
You may not believe my salary, I found it was important to announce on one or two occasions, especially this one as we are taking about tax and as you know it is related to salary. You are free to google Qatar salaries for professors with PhDs and experience I have 30 years, they are available on the Chronicle of Education forum. You will see I am being rewarded quite conservatively and if some on came on this site and referenced a salary of 250.000 yen per month I am sure you would not have a problem with it.
 

Mike Cash

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Mike Cash,
You may not believe my salary, I found it was important to announce on one or two occasions,

It isn't a matter of not believing. It is a matter of being tired of the one-note samba. You drag it in by the heels every chance you get. If you were repeatedly announcing 250k/month in yen I would be equally as tired of hearing that.
 

ishibai

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It isn't a matter of not believing. It is a matter of being tired of the one-note samba. You drag it in by the heels every chance you get. If you were repeatedly announcing 250k/month in yen I would be equally as tired of hearing that.

Did I? I wasn't aware I think I brought it up 2 or 3 times. Sorry, I will try not to mention it again unless it is relevant.
 
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