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Any small school owners out there in Japan? Tax increase.. 
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Joined: Sat Feb 18, 2012 9:19 pm
Posts: 12
Post Any small school owners out there in Japan? Tax increase..
Any small school owners or English school managers have some kind of plan regarding the 3% tax increase coming in April? At my school it has always been "tax included" so I want to keep fees reasonable but don't want to take a 3% salary cut either. I also don't want to be messing around with coins, because 99% of my students pay cash. I currently charge 6000 yen per month so it would be 6180. Or just go to 6500, or 7000? Charge a one-time fee of 2160 or 2000 a year? I don't want any backlash, especially from students who recently joined. Any feedback would be greatly appreciated.


Fri Jan 03, 2014 11:54 am
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Joined: Mon Jan 02, 2006 10:46 am
Posts: 2130
Location: Nagano, Japan
Post Re: Any small school owners out there in Japan? Tax increase
I have an accountant do my taxes and I think you don't need to pay sales tax until total "sales" exceed ¥10,000,000/year. And even then, you don't have to pay the taxes on that year. You'll begin paying the taxes on the income the next year.

Now, if you have exceed the income threshold, you can buy yourself two years of sales tax free by re-designating your company. For example, change from an LLC to Inc. or go from self employed to an LLC. It's best to check all of that with a Japanese accountant though.

Also, there's something funny about the sales tax. As a company you don't actually have to pay the full 5% or 8% back. It's all quite strange.

As far as collecting, it's very hard to raise prices on existing students, but it would seem reasonable to raise prices on new incoming students. They may be paying more than existing students but you can reassure them that if prices go up again, they will remain fixed at the current rate.

How big is your school?

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Tue Jan 07, 2014 8:17 am
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Joined: Sat Feb 18, 2012 9:19 pm
Posts: 12
Post Re: Any small school owners out there in Japan? Tax increase
Thank you so much for the feedback. I have 175-200 students. I'll check into that stuff with the local Chamber of Commerce. Thanks again.


Wed Jan 22, 2014 2:42 pm
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Joined: Thu Feb 09, 2006 1:36 pm
Posts: 386
Location: Tohoku Japan
Post Re: Any small school owners out there in Japan? Tax increase
I suppose it all depends on how much you want to keep your present students
do you think a small increase would make any leave?
only you can answer that
but to me if you don't have a large amount of students are are worried about it I would keep things as they are now
remember next year it will go up again and you can do an increase then and you might have made a certain amount of good feelings through not doing it now
just my 2c worth


Fri Apr 18, 2014 9:21 am
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