> Is the allowance from papa-katsu (compensated dating in Japan) subject to income tax or gift tax?
Please ask a tax accountant who specializes in this area. You could probably also ask the tax office, and they should be able to tell you.
Since you mentioned gift tax in your question, I assume you’ve read the previous information. It seems either one could apply, depending on the circumstances under which you receive the money.
> Does it depend on the nature of the relationship?
Rather than the nature of the relationship, it seems to depend on how you receive the allowance.
From this point on, even tax professionals may have differing opinions, so I don’t think anyone can give you a definitive answer in cases like this.
> Roughly what percentage of people involved in papa-katsu actually pay taxes?
That’s a strange question. Japanese citizens have a legal obligation to pay taxes, so if you’re subject to taxation, you have to pay 100% of what you owe.
It sounds about as odd as asking, “What percentage of Japanese people evade taxes?”
> If I pay taxes, won’t my workplace find out?
Generally, they won’t. However, just as with ordinary part-time income, the accounting department may notice a change in the amount of resident tax you pay, and that could lead them to find out.
You could say that you reported income from items you sold on Mercari, and that would probably be fine. (They’d only know that your income increased; they wouldn’t know it came from papa-katsu.)
