Tips Feb 10, 2022 15:12

Regarding taxes on papa-katsu (compensated dating in Japan): Even if you earn over ¥1.1 million in a year, wouldn’t many people choose not to report it if they spend it all on beauty treatments and living expenses and have nothing left? What do you think?

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5 answers

前澤(スタッフ)
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Age: Private 👨 Male Universe staff
It’s best to consult a professional—a tax accountant or certified public accountant—about taxes. That said, speaking as a non-expert: Money received through papa-katsu (compensated dating in Japan) could be considered a gift, meaning gift tax may apply. I assume that’s why you mentioned the ¥1.1 million threshold. You’re free to spend gifted money however you like. However, gift tax applies to any amount over ¥1.1 million. Even if you’ve already spent the money and no longer have it, you may still owe tax on it. That’s why I mentioned earlier that, if you treated it as a business, beauty expenses might potentially qualify as business expenses. If they qualify, that portion wouldn’t be taxed, which could help reduce your tax burden. There’s probably nothing you can do about the money from 2021 at this point, but if it’s income from 2022, you may still be able to reduce your taxes by preparing now. If you’re concerned, I think you should consider tax-saving measures, such as starting a company or registering as a sole proprietor.
(3 replies left)
ジョー・ルビコン
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Age: 60s 👨 Male Universe member
You should generally consult a tax professional. Paying taxes is a basic civic responsibility, so once the authorities take an interest in you, there’s basically no way to avoid it. The most likely scenario is that, if your papa (a male supporter) is audited, the tax office may contact you as well. Also, I think it’s a bit of a stretch to classify an allowance as compensation for emotional distress. There may be cases like that, but— “Here’s your allowance. Now, go on and take off your panties.” “Oh, don’t be so impatient, tee-hee.” However you look at it, that isn’t compensation for emotional distress, is it? Or am I wrong?
(3 replies left)
Even if you don’t have any money left over, it’s still taxable. Your tax bill doesn’t change just because your daytime salary gets spent on rent, food, and other expenses, right?
(3 replies left)
Is the allowance from papa-katsu (compensated dating in Japan) subject to tax? If you consider the allowance compensation for emotional distress, it seems like it wouldn’t be taxable.
(3 replies left)
カズ
Age: Private 👨 Male Universe member
Even if you don’t have any money left, you still have to report it. If spending it meant you didn’t have to pay taxes, I’d do the same.
(3 replies left)