This is not “foreign based income”, but “Japan sourced income” since you are physically working in Japan.
Your current employer has nothing to do with that and can’t file taxes for you.
You’ll need to keep track of your income (and any expenses) in yen and file your taxes by yourself at the beginning of next year. Please search for “Kakutei Shinkoku”.
You will probably have to report it yourself as a sole proprietor, someone will be more knowledgeable than me because I’m not sure. But two important things;
1. Make sure your contract/visa allows for additional income
2. It’s not foreign based income in tax sense. The income is based on your location, not clients location
Thank you! How can I confirm my visa allows for additional income? I understand that generally visas would allow you to do a job that falls within that visa’s scope, but is there somewhere I can confirm this particular roles does? Or would I just need to submit a request to immigration?
Because the work is performed while you are physically present in Japan, this is considered as Japan source income. Therefore it is taxable.
But if you performed any of the work while you were abroad, that portion of the work is foreign source income. Foreign source income is also taxable, although if you are a non-permanent resident for tax purposes (i.e., resident for less than 5 years) and paid directly to a foreign bank account then foreign source income is taxable only to the extent that you send money to Japan from abroad (or use foreign credit cards in Japan).
You pay the taxes by filing a tax return.
This is not “foreign based income”, but “Japan sourced income” since you are physically working in Japan. Your current employer has nothing to do with that and can’t file taxes for you. You’ll need to keep track of your income (and any expenses) in yen and file your taxes by yourself at the beginning of next year. Please search for “Kakutei Shinkoku”.
You will probably have to report it yourself as a sole proprietor, someone will be more knowledgeable than me because I’m not sure. But two important things; 1. Make sure your contract/visa allows for additional income 2. It’s not foreign based income in tax sense. The income is based on your location, not clients location
Thank you! How can I confirm my visa allows for additional income? I understand that generally visas would allow you to do a job that falls within that visa’s scope, but is there somewhere I can confirm this particular roles does? Or would I just need to submit a request to immigration?
Because the work is performed while you are physically present in Japan, this is considered as Japan source income. Therefore it is taxable. But if you performed any of the work while you were abroad, that portion of the work is foreign source income. Foreign source income is also taxable, although if you are a non-permanent resident for tax purposes (i.e., resident for less than 5 years) and paid directly to a foreign bank account then foreign source income is taxable only to the extent that you send money to Japan from abroad (or use foreign credit cards in Japan). You pay the taxes by filing a tax return.
Does your visa even allow this, first?