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Originally Posted by jasonbvr
What? I don't know where you were or what it was like back in the day, but JET's definitely pay income tax and pension fees. The pension you receive back when you leave Japan. It is around 40k yen out of your pay compared to the income tax I have to pay (10k) which I can receive most of it back. I have to fill out forms just like the JET's, but it is fairly easy. The exemption for US income tax is for people earning up to 60k USD a year. After that, you have to pay. You will still file, whether over or under 60k USD.
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You do have to pay pension fees, but you can recover them. You can get 80% back on your own, and you are allowed to will the remaining 20% to a Japanese national. Most JETS (including myself) do this with a trusted Japanese friend or colleague, and they in turn pay you that amount.
But JETs (depending upon your country of origin) either pay no income tax, or your salary is automatically increased enough to pay the taxes, such that everyone gets 3.6 million yen per year. I paid no Japanese income tax. And since 3.6 million yen is much lower than $60,000 US, you don't pay federal income tax in the US so long as you are out of the country at least 330 days. But you do still have to file and state that you are exempt, you can't just not submit anything.
The JET Programme - Aspiring JETs - Application FAQ
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10.6 Do JETs have to pay taxes in Japan?
Your tax status in Japan depends largely on your nationality, the length of your stay and your occupation in Japan. If you do not qualify for exemption from income and or inhabitant taxes in Japan, the terms and conditions of employment on the JET Programme allow for a higher gross salary to cover Japanese tax payments. For more information please consult with your Contracting Organisation and see the General Information Handbook (p.95.)
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10.7 Do JETs have to pay taxes in their home country?
Tax liability for your Japanese income is determined by the tax treaty between Japan and your home country. For more information please see the General Information Handbook (p.97) and contact the tax authority in your country of citizenship.
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