Tokyo

As an Australian am I entitled to work in Tokyo?

Australian citizens that wish to be employed in Japan must secure work permit. In order to do so, you will need to get a company to sponsor you. You can apply for a visa in or out of Japan, but to change a landing permit into a work visa, you need to get it at a Japanese embassy or consulate outside of Japan. Visa for legal service providers can be 6 months, 1 year or 3 years in duration.

Once you are on a work visa, if you plan to leave Japan for travel you MUST get a re-entry permit from the Immigration Department. A single re-entry permit is ¥3000, and a multiple permit, which allows for an unlimited number of re-entries, is ¥6000. Failure to get the re-entry permit stamp in your passport may prevent you from being allowed back into Japan.

If you stay more than 90 days in Japan you are required to register with the Japanese government and carry a Foreigner Registration Card. Bring your passport and 2 passport size pictures to the local government office in your district. You will then be given a temporary paper registration certificate. In about a month you will need to go back to get the card. Anytime you move or renew/change your visa you have 2 weeks to inform the government at the district office near you. You must carry your registration card (or your passport) with you at all times and present it to any policeman or immigration officer who requests to see it. Failure to do so may result in being detained and/or a fine of up to ¥200,000. When leaving the country for good you need to surrender the card to the immigration officer at the airport/seaport.

As an Australian am I qualified to practise as a solicitor in Tokyo?

Foreign qualified solicitors are not required to be admitted in Japan to practice as a solicitor in that country. The foreign legal consultant system allows such solicitors to qualify as a foreign legal consultant if the following criteria are satisfied:

·         You must be qualified as a lawyer in your home country;

·         You must have engaged in the practice of law for 3 years or more;

·         You must have a residence in Japan and a finance basis to perform legal services, as well as the ability to provide compensation for any damage caused to clients; and

·         You must not be incompetent, bankrupt, found guilty of a criminal offence or have been sanctioned by your local professional association.

If you would like to be admitted as a solicitor in Japan you are required to:

·         Pass the bar examination;

·         Complete a one and a half year legal apprenticeship at the Legal Research and Training Institute;

·         Pass a further examination at the Institution; and

·         Register with the Japanese Federation Bar Association.

Who are the top law firms in Tokyo?

The following firms are considered to be the top international firms in Tokyo:

ASHURST 
ALLEN & OVERY
BAKER & MCKENZIE
CLIFFORD CHANCE
FRESHFIELDS
HERBERT SMITH
LATHAM & WATKINS
LINKLATERS
LOVELLS
MILBANK,TWEED, HADLEY & McCLOY LLP
MORRISON & FOERSTER
O'MELVENY & MYERS
ORRICK, HERRINGTON & SUTCLIFFE LLP
PAUL, HASTINGS, JANOFSKY & WALKER
PAUL, WEISS, RIFKIND, WHARTON & GARRISON
SHEARMAN & STERLING
SKADDEN, ARPS, SLATE, MEAGHER & FLOM LLP
WHITE & CASE

 
What are the average solicitor’s salaries in Tokyo?

In Tokyo most foreign firms are moving away from the expatriate package. The new system covers an overall package which includes base salary, and an allowance for housing and cost of living. The figures set out below are reflective of an overall package in Yen:

Bonuses: Most firms pay bonuses

Benefits: Benefits often include club memberships, life assurance, international flights and medical
Holidays: The average amount of holidays is 25 days.

What are the tax rates in Tokyo?

Expatriates are liable for income tax (national tax under the Income Tax Law) and inhabitant tax (prefectural and municipal taxes under the Local Tax Law).

Income tax is payable for each calendar year, however, inhabitant tax for the calendar year is calculated based on taxable income for the preceding calendar year. Moreover, inhabitant tax assessed against residents in Japan as of January 1 of the taxable year, and, therefore, if an expatriate terminates his assignment in Japan and leaves Japan on, for example, the second of January, he/she will be liable for the entire inhabitant tax for the year of his/her departure from Japan based on the taxable income for the preceding year regardless of only two days of residence in Japan for the year of departure.

As a rule, if your "basic tax amount to be prepaid in a year" comes to ¥150,000 or more, you must make prepayments of your estimated tax in the year. And the amount will be notified by the tax office.

Non-residents are taxed on income from sources in Japan. According to Japanese Income Tax Law, salaries, wages or other compensation for personal services performed in Japan are treated as income from sources in Japan, whether they are paid in Japan or abroad.

Does Japan have a compulsory superannuation scheme?

Japan’s version of compulsory superannuation is called Employees’ Pension Insurance. All workplaces of more than 5 employees are required to participate in this scheme. Both employers and employees contribute approx. 8% of employee's salary as premiums (including a premium for the National Pension), and the pension payment is income-related. There is a maximum premium set at the premium rate multiplied by ¥590,000 (maximum category of monthly salary).

When you leave Japan permanently you should ask your employer or the social insurance office for an application for return of pension (Kosei Nen Kin) and a Request of Arbitration for Lump Sum Withdrawal Benefit (Dattai Ichijukin Saitei Seikyu-Sho). The form must be taken back to Australia and the bank account the money goes into must be in Australia not Japan. You will need to prove you are back in Australia (photocopy of entry stamp in passport). The amount you receive depends on how long you have been participating in the scheme.

You should receive the relevant amount less 20% tax. You can then apply to the tax office to get most of this back but this sum of money must go into a bank account in Japan. You will need a Declaration naming a person to administer the tax papers. This must be a Japanese person who can then lodge the form to receive the tax. It will then go into their bank account and they can send it on to you.

As an Australian am I entitled to public healthcare in Tokyo?

Medical expenses in Japan can be quite costly. If you live in Japan you can choose to enrol in Japan's National Health Insurance. Under this plan you pay a monthly premium, as well as a 30% deductible of your medical/dental bills immediately on treatment; the government pays the other 70%. You can sign up for it at your local city ward or town office. The ward or town office determines a monthly premium to pay based on your previous year's income. If you're new to the plan the amount can be quite low-around Y1350-4500 per month. However, every April at the next premium adjustment you may find the amount escalating sharply, even if your income changes very little. A first year of Y4500 a month, a second year of Y13,500 a month, and a third year of Y35,000 a month is typical (Japan has an exploding number of old-timers). Cosmetic/elective surgery, child birth, and abortions are not covered, however.

Government insurance can be cancelled if you are leaving Japan.

Will I be able to set up and access a bank account as soon as I arrive in Tokyo?

Foreigners can open a bank account in any bank in Tokyo. Usually two systems are offered: savings and time deposit. Savings accounts are intended for money deposits with low interest rate (1-2%), and the money is available at any time. In the time deposit accounts, the money is invested for a fixed period of time, and interest rates are around 4-7% a year. Money transfer to and from Japan is possible. Each transfer costs about ¥4,000, and it will take about 5 days to complete. It is important to remember that personal cheques are not used in Japan. All payments should be made in cash or with credit card. Since most cash dispensers are not open for 24 hours and are particularly limited at weekends you should always have some cash at home.

You are better off only buying some yen before arriving in Japan as the rate there is better and commission lower.

How difficult is it to find rental accommodation in Tokyo?

Apartments in Japan are found through real estate agents (fudosan). There are also magazines for apartment seekers. The Japan Times, or regional ex-pat magazines can be helpful.

When you rent an apartment in Tokyo you will generally have to pay the first months rent in advance, one months rent as commission to the fudosan and two months worth as a deposit.

Rents are high in Tokyo and apartments often small. Rooms are measured according to how many tatami mats fit into it. A tatami mat (-jo) is 1.8m x 90cm, and a typical room has 6-jo, or about 10 square meters. A 1K apt. has one 6-jo room, 1DK has that plus a kitchen room, 1LDK has that plus a living room. Other apartments have 2DK which means 2 6-jo rooms, etc. A small one-person apt. in Tokyo can easily cost over $1000/month in rent excluding utilities.

If you change apartments, some owners require at least a one-month advance notice or you may have to pay a penalty.

A 1 bedroom apartment can cost around ¥80,000- ¥140,000+ per month.

 
The most favoured areas to live in are Hiroo, Roppongi, Azu Juban and Shibuya where a modern 2 bedroom apartment will cost around ¥500,000 per month.

 
Can I drive in TOKYO with an Australian driver’s license?

No. In order to drive in Japan you will need to get an international license before you come to Japan, or else get a Japanese license whilst in Japan. The international license will only be as good as your visa or a max of one year. Then you'll need to renew it in your home country or get a Japanese license. For the Japanese license, you can use your own country's license in lieu of having to go to a Japanese driver's school (saving you up to ¥300,000), but you'll need an authorized translation of your license as well as taking a written test (English now available) driver's license, colour recognition and eye test. The whole process takes several hours and you'll need to sign up for it first thing in the morning (call for times), paying up to ¥5000. (In large cities you may have to wait a few weeks). Passport, photo, foreigner id card and knowledge of Japanese street signs are necessary.

The costs involved with owning a car in Japan are discouraging. Traffic is heavy and petrol prices are high. You must have a parking space for the car and pay taxes on it. You must also pay taxes on the car.

Even if you decide not to use a car in Japan it is a good idea to have an international drivers licence for the occasions when you may have or want to. It is valid for a year and can then be renewed in your home country or exchanged for a Japanese license.

There is a book in English on Japanese driving rules and signs. It is called Rules of the Road and is published by the Japan Automobile Federation (supervised by the traffic bureau of the National Police Agency).

Does my spouse have a right to work?

Your spouse has the right to live in Tokyo for as long as you live and work there. Your spouse must be entitled to their own work permit if they wish to be employed whilst in Japan. A de facto partner does not have the same right as a spouse and would have to apply for a visa in their own right.