Tips Sep 27, 2019 05:26

Are there any tax-saving measures for the money you receive? Won’t it cause problems when filing your tax return?

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I’m Saito, a columnist♪ There’s nothing complicated about it.
(3 replies left)
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Maezawa from the Corporate Planning Office here. When it comes to tax planning, I think some people take measures while others simply leave things as they are. For example, if you receive the allowance as-is, it would be considered a gift. But if your papa (a male supporter) runs a company, you could receive it as an employee, in which case the allowance would be treated as employment income. Alternatively, if you set up an independent contractor agreement—say, for counseling services—the tax treatment would be different again. If you receive it as a gift, tax savings may be difficult, but using one of the other arrangements could create business expense deductions. As long as you can properly prove that the work is genuinely business-related, you may be able to reduce your taxes. A tax accountant would know the most about this, so it would be best to consult one who specializes in tax savings. Of course, that comes with a fee, so it probably depends on how much allowance you receive. Normally, though, I think it’s better to simply pay your taxes properly.
(3 replies left)