Foreign instructors feel pinch of new invoice system

Oct 04, 2023 | News On Japan

TOKYO - Japan's new invoice system, designed to accurately track consumption tax payments, began this month. However, concerns and opposition persist among freelancers and small business owners.

Meet Mitchell Brown, an English conversation instructor from Canada.

Brown: "This is my monthly income before paying taxes and health insurance."

He earns approximately 240,000 yen. After deducting taxes and other expenses, he takes home around 150,000 yen.

In the future, the burden of consumption tax will further reduce his take-home pay.

Brown: "If I have to pay consumption tax, it will be 131,516 yen. On top of that, I have loans, expenses for my child, and soaring electricity bills. Who can make ends meet?"

Brown works for the major English conversation school "Gaba." In reality, Gaba's instructors are not employees but "individual business owners" who contract with the company on a commission basis and receive compensation.

Until now, there has been a system that exempted consumption tax payments if the annual revenue was less than 10 million yen. English conversation schools could also deduct the consumption tax paid to instructors.

However, starting this month, if instructors do not register under the invoice system and remain as "tax-exempt entities," the schools will no longer be able to deduct as much consumption tax, leading to a greater tax burden.

English conversation schools have already issued the following notice to their instructors:

Notice from GABA Co., Ltd.: "To continue our contract, registration with the invoice system is necessary. (Starting from October), we will only contract instructors who have registered with the invoice system."

Brown, who has a 5-year-old child, has registered, but considering education expenses, returning to his home country, Canada, is also an option.

Brown: "My wife is still supporting our household by working overtime even after her shift ends. While we can manage financially, it's not the work-life balance I desire."

The Japan Fair Trade Commission has called on companies to avoid unfair contract terminations or discounts in dealings with tax-exempt entities.

Toyota to Launch Self-Driving Taxis in 2027

Toyota Motor will begin operating fully autonomous taxis in 2027 through a partnership with U.S. self-driving technology company Waymo, marking a major step in the Japanese automaker's efforts to expand driverless transportation services.

Mount Fuji Puts on First Snowcap

Mount Fuji has received its first snowcap of the season, the Japan Meteorological Agency announced on October 30, after temperatures at the summit plunged to minus 9.4 degrees Celsius, marking the arrival of winter conditions on Japan's highest mountain.

Chinese Female Spy Suspected of Targeting Nvidia Chief

U.S. intelligence agencies suspect that a Chinese female intelligence operative developed a close relationship with Nvidia CEO Jensen Huang in an attempt to obtain confidential corporate and U.S. government information, according to a report published by The New York Times on October 29th.

Japan Blocks Websites Leaking GMO Personal Data

The Japanese government has asked major telecommunications operators to forcibly block access to websites believed to contain personal information stolen in a cyberattack on GMO, it emerged on October 29th, as authorities moved to prevent further exposure of sensitive data online.

Typhoon No. 31 Heads Toward Japan's Remote Islands

Typhoon No. 31 was located near Minamitorishima Island in the Pacific Ocean, as of 3 a.m. on October 30, and was expected to approach the Ogasawara Islands south of Tokyo over the October 31-November 1 weekend while maintaining very strong intensity, bringing a growing risk of dangerously high waves, powerful swells and extremely rough seas.

MEDIA CHANNELS

MORE Education NEWS

One in Five Japanese Children Spend No Time Reading

Japan's children are increasingly turning away from books, with a nationwide survey finding that more than 70% spend less than an hour reading each week and nearly one in five do not read at all, raising concerns about literacy and learning as schools and families search for ways to rebuild reading habits.

France protests: Muslim Brotherhood linked groups accused of fuelling unrest

France has seen days of protests in Paris over the rising cost of living and declining access to public services, including state education. Some demonstrations have been marred by violence and looting.

How Families Are Turning Overwork Deaths Into Court Cases

In Japan, excessive overtime work could lead to a presumed cause of death. Lots of workers have logged very high overtime hours. Families no longer accept compensation as the end of the matter and have started taking employers to court instead. These cases have started to decide what a company must know about its staff hours, and what it must do once it knows.

Police Video Exposes Threats Behind Illegal Jobs

Tokyo's Metropolitan Police Department has released a warning video highlighting the dangers of illegal part-time jobs advertised on social media, showing how young people can be drawn into organized crime through promises of easy money before being threatened with violence if they attempt to escape.

Japan Worker Shortage Puts Paper Teachers in Spotlight

Local governments across Japan are stepping up efforts to recruit people who hold teaching licenses but are not working in schools, known as "paper teachers," as a worsening teacher shortage has seen the national ratio of applicants to available elementary school teaching positions fall from 12.5 in fiscal 2000 to just 2 in 2025.

Chinese Parents Turn to Japan for a Better Education

A growing number of Chinese families are moving to Japan to escape their country's fiercely competitive education system, attracted by a more relaxed learning environment and better quality of life, as Japan's foreign resident population reaches a record 4.28 million and universities report a sharp increase in Chinese students seeking to build their futures in the country.

Record Low 28.2% of Japanese Parents Want a Second Child

The proportion of parents in Japan who want a second child has fallen to a record low of 28.2%, according to a survey by major life insurer Meiji Yasuda, highlighting growing financial pressures, demanding work schedules and concerns about the future that are making it increasingly difficult for families to consider having more children.

Japan Casino School to Train Dealers for MGM Osaka

Japan Casino School has announced plans to launch a new training course in April 2027 to prepare casino dealers for MGM Osaka, the operator of the integrated resort under construction on Yumeshima, Osaka, with a target of training 500 dealers annually ahead of the facility's opening.

< 2 3 4 5 >