2005/06/21

Taxation in Japan

In Japan, a typical employee (median?) makes about 7 million yen (about $65k). Due to various exemption, they get taxed on 2.6 million yen (about $24K) which works out to be 210k yen (about $1,950) of taxes. They are looking at decreasing the exemption so that taxable amount will be 4.1 million yen (about $38K) which works out to be 380K yen (about $3,500) of taxes.

No wonder things can be expensive in Japan yet people seems to have lots of disposable income (I worked in Japan for 3 years but didn't bother to look at my tax statements). It only takes about 1 month of work (out of 1 year) to pay for taxes while in the US we have to work for 4 or 5 months to pay our dues.