Note; We are not tax experts and cannot take responsibility for any incorrect information contained below it is the responsibility of each individual JET to check their tax liability
As Benjamin Franklin infamously put it, there are two certainties in life, death and taxes. Luckily, we’ve got a pretty good track record in avoiding the former in Shimane and for a few of you can (legally) avoid the latter too.
First of all, lets talk about the different types of deductions/taxes in Japan.
Insurances. There are three insurances that are compulsory for all JET participants to pay. Unemployment Insurance, National Health Insurance and the Welfare Annuity/Pension.
Unemployment Insurance(失業保険, しつぎょうほけん, Shitsugyohoken)
This is compulsory for all employees in Japan and is pretty self-explanatory. It is by far the cheapest deduction on your pay slip at around ~2,000円 a month.
National Health insurance (国民健康保険, こくみんけんこうほけん, kokuminkenkohoken)
Note: This is a different insurance to the JET accident insurance which is paid by your contracting organization.
This is basically the payment for your blue card/hokensho health insurance which covers 70% of your eligible medical expenses. This deduction is approximately ~15,000円 a month depending on which year you are on in JET.
*Note; Your JET accident insurance(paid for by your employer) will refund the other 30% minus the 5,000 円 excess/deductible.*
Pension/Welfare annuity ( 厚生年金,こうせいねんきん, kouseinenkin)
This is by far the biggest deduction on your pay slip at ~25,000-30,000円 a month depending on which year you are on. But, the good news is most of it you do get back upon leaving Japan. See more info here.
Income Tax (所得税, しょとくぜい, shotokuzei)
Note; American ALTs(not CIRs) are tax exempt for both income and residence taxes for their first two years.
Income tax in Japan is progressive and is approximately ~7,000-9,000円 a month depending on your year on JET.
Residence Tax (住民税, じゅうみんぜい, Juminzei)
Residency Taxes in Japan are calculated based on income in each calendar year (January 1st to December 31st). The bill for these taxes is sent to the resident in June of the following calendar year. When paid, these taxes cover the current fiscal year (April 1st to March 31st).
The tax is 10% of your income earned in the previous calendar year. (This is comprised of 4% Prefectural Tax and 6% Municipal Tax for a total of 10%.)
*Each resident must also pay an additional \1,500 on their Residency Tax bill (\1,000 flat tax + \500 forestry and environment tax)
In most cases for Shimane JETs, this tax is not deducted from your salary and is a separate bill that arrives in June. The bill is usually comes in installments to pay over several months. For JETs that are not renewing their contract the due dates for these payments may come after you leave Japan however, you are still liable for these taxes and must pay before you depart.
*credit to Oita JET for the above image.
This is a rough guide of how much you are expect to pay;
*credit to Niigata JET for the above image.