Banking, Money and Taxes in Japan
The Japanese banking system is one of the best and most reliable in the world. Having said that, there are some rather surprising aspects to money in Japan: it is a cash-based society, almost everything is done with cash; ATMs are not open after 11PM or over weekends (although there are some 24-hour ATMs in convenience stores which charge per transaction); credit cards must be paid off in full at the end of each month. Luckily it is quite safe to walk around with a considerable amount of cash on you, although the usual precautions should always be taken. The local currency is the yen and it is currently the strongest currency on the market. 
You will be able to open a bank account quite easily at any of the local banks once you have your “gaijin” card. Ask around as not all the banks have English-speaking staff or English options on their ATMs. If you are not in Tokyo you might need to write down the important characters in order to be able to use the ATM. You might need to take your passport with you when you open an account but this might not be necessary.
It is highly recommended that you get a “hanko”, an official stamp with your name in characters, before you open your account. In Japan the hanko is the equivalent to a Western signature and it will make life much easier to have one. Debit orders are frequently rejected because the signature on the permission form does not match the signature on the bank’s records exactly. Do not bring foreign bank cheques – they do not exist in Japan and you will struggle to cash them. There is 0% interest on normal bank accounts.
You will be able to open a bank account quite easily at any of the local banks once you have your “gaijin” card. Ask around as not all the banks have English-speaking staff or English options on their ATMs. If you are not in Tokyo you might need to write down the important characters in order to be able to use the ATM. You might need to take your passport with you when you open an account but this might not be necessary.
It is highly recommended that you get a “hanko”, an official stamp with your name in characters, before you open your account. In Japan the hanko is the equivalent to a Western signature and it will make life much easier to have one. Debit orders are frequently rejected because the signature on the permission form does not match the signature on the bank’s records exactly. Do not bring foreign bank cheques – they do not exist in Japan and you will struggle to cash them. There is 0% interest on normal bank accounts.
It is fairly easy to send money overseas via telegraph transfers either at your bank or at the Post Office.
You will be required to pay two types of tax while in Japan – income tax, which is usually worked out as a percentage of your salary (ranging from 5% to the maximum 40%), and the annual resident tax, which depends on where you live. The resident tax (“shinminzei”) is worked out on an annual basis and is only applicable if you live in Japan for longer than a year.
If you intend to stay in Japan for a few years it is wise to factor this into your savings as it can be a hefty amount. It is also a good idea to see a tax advisor on arrival in Japan as the tax system is quite complicated and there might be a treaty between your country and Japan which could affect what taxes you must pay.
If you intend to stay in Japan for a few years it is wise to factor this into your savings as it can be a hefty amount. It is also a good idea to see a tax advisor on arrival in Japan as the tax system is quite complicated and there might be a treaty between your country and Japan which could affect what taxes you must pay.
