Health Insurance - Survival Japanese - Banking - Housing - Taxes - Phones - Transportation - Visas
HEALTH INSURANCE
Japan’s universal healthcare system is for everyone
Enrollment in a Japanese government-managed health insurance system is a legal requirement for all residents of Japan. The only exception is SOFA* holders. Although enrollment is not a requirement to apply at NOVA, both employees and Independent Contractors alike are expected to be compliant with the rules and regulations governing the country.
*Status of Forces Agreement issued to persons affiliated with the US Military
National Health Insurance
国民健康保険 – Kokumin Kenkou Hoken
NOVA recommends instructors enrol in the Japanese National Health Insurance plan. Once again, the only exception is SOFA holders mentioned above. For newcomers to Japan, the National Health Insurance plan is inexpensive and has good basic coverage. The premiums are generally around 5000 yen per month for the first year. From the second year onward, premiums are tied to the instructor’s earnings from the previous year and will usually increase. Enrollment is a requirement for instructors seeking visa sponsorship with NOVA. Requirements and information may vary depending on your city/ward. Please check with your local municipal office for more details.
Social Health Insurance
社会保険 Shakai Hoken
Full-time employees of companies in Japan are enrolled in this option. Independent Contractors do not qualify directly, but for those with family members in Japan who are enrolled in the Social Health Insurance plan, this may be an option. The instructor can be considered a beneficiary and included under the health insurance plan provided by the family member’s place of employment. It is important to be aware of possible income limits as exceeding the limit may result in the necessity to pay additional insurance premiums or switch to Japanese National Health Insurance.
Private Health Insurance
Many foreign residents of Japan opt to take out policies offered by private insurance companies. However, do bear in mind that all foreign residents of Japan must be enrolled in some form of health insurance sponsored by the government (i.e. National Health Insurance, Social Health Insurance). Therefore, private health insurance can only act as a supplement. If you are interested, here are some private insurance companies you may choose to explore:
Health One
Banner Japan
SURVIVAL JAPANESE
One could live in Japan without speaking a word of the language. Street signs and station names are written in romaji (the alphabet). Many government agencies can provide documents in English. Of course, your Japan experience will be all the richer if you do learn the language, even if it’s just the basics. If you are at square one, the following phrases will be handy for getting by in Japan. Once you’re settled, look to Japanese Lessons with NOVA to further your skills!
Phrase
Romaji
English
こんにちは
Konnichi wa
Hello/Good afternoon.
おはようございます
Ohayou gozai masu
Good morning
よろしくお願いします
Yoroshiku Onegai shimasu
It’s nice to meet you. (Lit. “Please take care of me.” Said at the end of a self-introduction.)
こちらこそ
Kochira koso
Likewise. (Response to “It’s nice to meet you.”)
はじめまして
Hajime mashite
How do you do? (Lit. “It’s the first time.” Said when meeting someone for the first time.)
お元気ですか？
O genki desu ka?
How are you? (Lit. “Are you healthy?”)
元気です
Genki desu
I’m fine
ありがとうございます
Arigatou gozai masu
Thank you
どういたしまして
Dou itashi mashite
You’re welcome
さようなら
Sayounara
Good bye
おつかれさまです
Otsukare sama desu
Thank you for your hard work. (Said at the end of the work day to coworkers or friends.)
英語ができますか？
Eigo ga dekimasuka?
Can you speak English?
はい
Hai
Yes.
いいえ
Iie
No.
いただきます
Itadaki masu
Thank you for the (food/meal). (Said prior to a having a meal or receiving food.)
ごちそうさまでした
Gochisousama deshita
Thank you for the (food/meal). (Said after a having a meal.)
だめ
Dame
That’s bad. (That’s no good.)
大丈夫
Daijyoubu
It’s (That’s) OK. / I’m OK
BANKING
Managing your money: an introduction to banking in Japan
A Japanese bank account is a necessity for our Instructors as NOVA can only remit payment to Japanese banking institutions. Although you may try to open an account at a major bank if you wish to, we would recommend JP post and PRESTIA as the most convenient options.
Opening a bank account usually requires the following:
Passport
Resident Card (Zairyuu) OR Certificate of Registered Matters If you have not received the actual card yet, you can use the receipt issued at time of application instead.
Telephone number
Hanko (inkan) stamp (May be required. See the Signature stamp section below.)
Different branches will have different requirements for opening an account, but the documents mentioned above are usually required by most banking institutions. For specific application requirements, please visit the bank branch and speak with a representative.
Prestia (formerly Citibank Japan)
From November 2015 Citibank Japan was incorporated into SMBC and continues business under the name Prestia. Presita may charge a small monthly fee for maintaining an account.
https://www.smbctb.co.jp/en/branch/
Shinsei Bank
The bank has fewer branches than other banks in Japan, but you can access your account through a large number of third party ATMs nationwide.
https://www.sbishinseibank.co.jp/english/atm/location.html
Japan Post Bank
Japan Post Bank Co., Ltd. is a Tokyo-based bank that is a part of Japan Post Holdings postal and financial group. It would be best to try to open an account at the branch closest to your residence. The application form can be filled out in English online in advance. In that case, please print out the completed application form and submit it to the branch.
https://www.jp-bank.japanpost.jp/en_index.html
Passbook: “tsuucho” 通帳
For most banks you’ll be able to obtain a tsuucho (bank passbook) at the time you open your account. When opening an account with Shinsei or PRESTIA, please ask the bank staff for an official document stating your full name and bank account number in lieu of the passbook as these banks do not issue them.
Signature Stamp: “hanko/inkan” 印鑑
A hanko (also known as an inkan) is a stamp engraved with the bearer’s surname. Hanko are the Japanese version of a signature and subsequently are an important tool for living in Japan. They help when getting a telephone or internet service, when setting up a bank account, joining a gym or anything else that requires you to prove your identity.
Although you are unlikely to use a hanko as frequently as Japanese people do, it is always handy to have one. There are shops which will engrave your name in katakana onto your very own hanko for around 2000 yen. It is probably best to learn how to write your name in katakana beforehand!
Housing
Check out dedicated page for housing options across Japan
TAXES
Taxes in Japan and declaring back home
Maintaining your finances can be ‘taxing’ enough without the additional hurdles of a foreign language and unfamiliar accounting practices. As all NOVA instructors are expected to comply with Japanese tax laws, we have included a basic guide. It’s really not that complicated!
Depending on the nationality of the instructor, there may or may not be the need to declare income earned in Japan back in the country of citizenship. Below the guide to Japanese taxes are links to explanations for several of the most common nationalities amongst NOVA instructors.Please be aware that tax laws are subject to periodic change and it is the responsibility of the instructor to stay current and compliant.
Japanese Taxes
1. Withholding tax/income tax “shotokuzei” (所得税)
Yes, there is income tax in Japan. NOVA deducts a flat 10.21% of monthly earnings for this purpose. What this means is that instructors can expect to take home almost 100% of their gross earnings on a monthly basis (10% consumption added, 10.21% withholding tax deducted for a take-home of 99.79%).
The “withholding tax” is paid to the government on behalf of the instructor. In December of each year, NOVA provides all instructors with a shiharai chousho (支払調書) , which roughly translates to annual tax report. From this, you can see how much you have earned over the year and how much withholding tax you have paid.
Believe it or not, filing withholding taxes is relatively straightforward in Japan. Tax time is from mid-February to mid-March; it’s a matter of visiting the ward/city tax office with the aforementioned shiharai chousho and receipts for any deductions to be claimed. The staff there are willing and eager to assist with the paperwork. Deductions can include travel expenses, suits, and just about anything else that is essential to teaching at NOVA. There is also a separate section on the form for those enrolled to deduct National Health Insurance contributions.
Following deductions, calculations are made to determine how much income tax is owed. If the amount is less than what was already withheld by NOVA, the instructor will receive a tax refund, which is usually deposited directly into the bank account a month after filing. Indeed, the 10.21% that was withheld each month is generally more than enough to cover the majority of instructors’ dues. One common reason why further taxes might be owed is that the instructor has sources of income other than NOVA and has not had a portion of this income withheld for tax purposes. In such an event, the instructor should be prepared to pay.
Most tax offices will have at least one employee who can speak English and who will be on hand to help any non-Japanese citizens to fill out the forms.
2. Consumption tax “shohizei”(消費税) Instructors are independent contractors and NOVA is ‘buying’ from instructors ‘lesson services’ for its clients. As the purchaser, NOVA is obliged to pay instructors consumption tax, currently 10%. Through NOVA’s system, instructors invoice NOVA for the lesson services they provide and, on the 25th of each month, receive payment for all lessons taught in the previous month. Consumption tax is added to the lesson payment.
To contract with NOVA, instructors need to be registered as Qualified Invoice Issuers within the Japanese government Qualified Invoice System. Qualified Invoice Issuers report the consumption tax they receive from NOVA through a separate tax filing each year and pay a portion of this tax to the government.
Registering to be a Qualified Invoice Issuer is a simple and free process that can easily be completed when first contracting as a NOVA instructor for those who are not already registered.
3. Resident tax “juuminzei” (住民税) Instructors will also be responsible for paying resident tax in their ward/city. The amount due is calculated from the previous year’s taxable income (i.e. income after any deductions have been made). Payment can be made in one lump sum or in four instalments throughout the year. The payment slips for resident tax are usually sent directly to the instructor’s home in June for payment at a bank or convenience store. Whilst how much instructors need to pay will vary depending on circumstances, it is usually around 10% of taxable income.
It is important to pay resident tax as it is a legal requirement for all citizens living in Japan. If an instructor is unable to make the payments for any reason, the instructor should seek consultation at the tax office to explain the situation.
Australia
Instructors from Australia may or may not need to declare their NOVA income when filing their tax returns in Australia. This is dependent on whether or not the instructor is considered to be a resident for tax purposes in Australia. In order to decide this, you will need to complete a questionnaire which can be found online.
If you are not considered to be a resident for tax purposes, you do not need to declare your NOVA income and will not be required to pay any further income tax.
If you are a resident, you will need to declare your NOVA income when filing your tax return in Australia. This is usually due by October 31st. Since all instructors pay a 10% withholding tax, this can be claimed as a foreign income tax offset to avoid paying tax twice on the same income. Claiming up to AU$1000 is fairly straightforward. However, if you are hoping to claim more than this, you will need to calculate your foreign income tax offset limit.
Please visit http://www.ato.gov.au/ for any additional information
Canada
Instructors from Canada may or may not need to declare their NOVA income when filing their tax returns in Canada. This is dependent on whether or not the instructor is considered to be a resident for tax purposes in Canada. In order to decide this, you will need to complete form NR73 which can be found at www.cra.gc.ca.
If you are not considered to be a resident for tax purposes, you do not need to declare your NOVA income and will not be required to pay any further income tax.
If you are a resident, you will need to declare your NOVA income when filing your tax return in Canada. Fortunately, there is a tax treaty between Japan and Canada to avoid double taxation. Due to the nature of the NOVA contract, as long as instructors do not have an office back in Canada from which they teach, NOVA income will not be taxable in Canada.
New Zealand
There exists a Double Tax Agreement between Japan and New Zealand which states that all independent contractors are exempt from income tax in New Zealand as long as:
you are in New Zealand for 183 days or less in any 12-month period or income year, and/or, you do not have a fixed base in New Zealand. Therefore, instructors who meet these requirements do not need to pay any further income tax in New Zealand on their NOVA income. If the above criteria are not met, Instructors will need to complete a questionnaire to determine whether or not they are a resident for tax purposes in New Zealand, which can be found here.
(link https://www.ird.govt.nz/index/all-forms-and-guides#sort=relevancy&numberOfResults=25)
If you are not considered to be a resident for tax purposes, you do not need to declare any income earned outside of New Zealand and will not be required to pay any further income tax.
Instructors who are determined to be a resident for tax purposes in New Zealand will need to declare their NOVA income on their tax return. However, any tax paid in Japan is able to be used as a tax credit in the income tax return.
For more information, please visit http://www.ird.govt.nz/.
United States
According to US tax law, all income earned by US citizens, including foreign income, is subject to income tax in the US. Therefore, instructors from the US need to be prepared to file taxes on their NOVA income. This is generally due by April 15th of the following year though this can be extended to as late as December 15th with the permission of the IRS.
However, there is an upside. Instructors may qualify to treat a certain amount, if not all, of their NOVA income as not taxable by the US. In order to be eligible, instructors must either pass the ‘Bona Fide Residence Test’ or the ‘Physical Presence Test.’ To find out whether or not you meet the criteria, look for more information here.
NOVA income may also be subject to state income tax. This varies from state to state, so it is recommended that instructors contact the state in which they were most recently a resident to find out whether or not they need to file a state income tax return.
For more information, and access to all official forms, please visit www.irs.gov.
Other Nations
The following countries do not require citizens to pay income tax on foreign earned income:
The UK
Please note that there may be exceptions and you may be required to inform the taxation office of your move to Japan. NOVA, therefore, recommends that all instructors do their own research and speak to a tax representative in their own country to confirm their obligations.
TELEPHONES
Staying connected: getting a phone in Japan
Mobile/cellular phones There are three main mobile phone (keitai denwa) carriers in Japan: NTT Docomo, Softbank, and AU by KDDI. All offer phones with English functionality. Charges vary depending on the package and usually cost from about 1,000 yen to 10,000 yen per month. Each company has different requirements in order to sign up for a plan. If you go to a major electronics store such as Bic Camera or Yodobashi Camera, there will most likely be a person who speaks some English. Alternatively, check the mobile carrier’s website for branches with English speaking staff. Some companies are now offering pre-paid mobile phones that require no monthly fee or plan purchase, but work mostly on pre-paid cards. Pre-paid mobile phones generally have basic functions such as text messaging but may not have internet access.
Most mobile phone carriers will require a bank account to sign up for a regular phone plan (usually a one or two-year plan). With this, your monthly dues will be automatically withdrawn from your account. Payments can also be made at store branches or convenience stores for those who receive their bills in the post. For pre-paid phones, there will be a flat fee for the cost of the phone and for usage you will need to purchase pre-paid cards.
SIM Only Services
SIM only services have become increasingly popular in recent years since the government deregulated the mobile service market. A SIM only service will allow you to use your existing smartphone in Japan. Here are a few companies that offer this service:
Mobal
GTN
Land-lines (home phone lines)
You’re most likely going to need more than basic Japanese for this; the best thing to do is to go to a major electronics store (e.g. Yodobashi Camera, BIC Camera, K’s Denki, Kojima Denki) as they usually have special packages that allow you to buy a land-line. It would be helpful to provide the representative with your address as choice of telephone service providers will differ by area. For more details on the requirements, please visit the electronics store in your area and speak to a representative.
TRANSPORTATION Navigating your way around Japan
Trains/subways
The principle mode of transportation in Japan’s big cities is rail. Clean, reliable, and safe, traveling by train is generally your best bet. For region specific information, look to the individual region pages in the Locations section.
Bullet trains
If you’re looking to get between cities, the speedy shinkansen, or bullet train, is a popular way to travel. The cost of tickets for the shinkansen is more expensive than taking the regular train, but it’s worth it for the time saved and the amazing views from the elevated tracks!
Buses
Flat-rate buses/community buses These types of buses generally operate in larger cities and usually within city limits. The cost is 200 yen for a ticket regardless if you get off at the very next stop or at the end of the line. You can purchase a commuter pass from the nearest ticket office or sometimes directly from the bus driver. Otherwise, all buses will have a cash machine on board for you to make the payment for one ticket or you can charge up your smart card and simply swipe your card for the payment. Payment is made upon boarding. Community buses generally travel very short routes with only a few stops. The rate is usually 100 yen.
Non-flat rate buses Non-Flat Rate Buses charge patrons according to the stop they get off at. These buses usually travel farther than the flat-rate buses and fares will exceed 200 yen. Don’t confuse these with coach/highway buses that travel long distances between cities. Non-flat rate buses will still travel within the area. The payment is made at your stop before you alight.
Coaches Coaches or ‘Limousine’ buses that travel longer distances such as between the city and the airport or city-to-city overnight tend to charge flat rates. These buses tend to be popular with those who are looking for an inexpensive way to travel without the inconvenience of having many stops along the way.
Taxis Taxis are pricey but plentiful. Fares, generally calculated based on the distance traveled, start at 710 yen. After the first two kilometers, the rate is approximately 100 yen for every 300 meters. Additional charges that you should be aware of are late-night charges for service between 10pm and 5am. As of January 2017, a special charging system started just in central Tokyo, charging 410 yen for the first kilometer.
Most major taxi companies offer translation services which are usually in the form of calling into the company’s multilingual dispatchers. Since most drivers in Japan use a navigation system to get around, having the address of your destination handy is often the simplest option. Be aware that the curb-side passenger door is opened and closed by the taxi driver, so be sure to stand clear!
VISAS
Permission is required for all non-Japanese nationals wishing to work while in Japan
Determining which visa(s) you qualify for should be high on your list of priorities if Japan is where you would like to live and work. There is a great variety to confuse the uninitiated! The information provided here is an introduction. Japan’s Ministry of Foreign Affairs website is a useful source for further details. For those living outside Japan, visit your local Japanese consulate or embassy.
Engineer/ Specialist in Humanities / International Services visa
NOVA can offer visa sponsorship under the status of Engineer/ Specialist in Humanities / International Services. NOVA will apply for a visa with a validity period of one year and if sponsored, the instructor is expected to make NOVA their primary source of income for a one year duration. To qualify, the applicant must have a university degree or 3 years of verifiable full-time experience teaching the English language. To allow for both the application and visa sponsorship process, applicants should apply 3 to 5 months prior to their desired commencement date.
NOVA can only sponsor the work visa for the instructor and that obtaining a Dependent visa for family members will be the responsibility of the applicant. We are not able to assist in a Dependent visa application.
Working Holiday visa
NOVA also accepts applications from those wishing to teach under a Working Holiday Visa. Please contact your local domestic Japanese Embassy for terms and conditions.
Other visa types
There are a variety of other visa types which allow the holder to engage in work. Many require a separate work permit to teach. These work permits generally have restrictions such as a maximum number of hours the holder can work per week. Listed below are some of the most common. Visas that require a work permit are categorized into those that do not require NOVA’s endorsement (i.e. The applicant can request the work permit directly) and those that do (i.e. NOVA provides the necessary documentation to the applicant upon acceptance of a contract offer).
Visa types which do not require a work permit
Spouse / Child of a Japanese National visa
Spouse / Child or a Permanent Resident
Long-term Resident visa
Permanent Resident visa
Visa types which require a work permit
College Student visa
Dependent visa
Job-Seeking visa