The 'income barrier' is not only in the million-yen range.
Discussions about the million-yen income barrier are actively taking place regarding income tax, residence tax, and social insurance premiums.
It seems that the number of workers who could be directly affected by an increase in the barrier amount is estimated to be around 4 to 5 million people.
Due to labor shortages, I don't think consciously suppressing employment based on the barrier is a good idea, so I believe individuals who want to work and are able to work should be able to work without worrying about the barrier.
So, although it's not a topic in the barrier discussion, there are people who want the upper limit to be raised.
That is the 'consumption tax barrier'.
If an individual business owner is working as a tax-exempt business operator, they become a consumption tax taxpayer when their annual taxable revenue exceeds 10 million yen.
While corporations are not subject to consumption tax for the first 2 years after establishment, if their taxable revenue exceeds 10 million yen, they will become consumption tax taxpayers from the third year onwards.
I would like you to raise this '10 million yen barrier'.
According to my research, this standard amount was set in 1997.
It seems that the current amount has increased by a little over 10% from the price level (CPI) at that time.
So it is only natural that this standard amount should increase by a similar extent.
However, since the invoice system has started, this barrier itself becomes meaningless.
I am a sole proprietor, and I have postponed registering for invoices. However, considering that the transitional measures for companies will end in a few years, I think I will have no choice but to register for invoices to align with that.
I want to postpone it as much as possible because my take-home pay will decrease, and administrative work will become more complicated.
In other words, if the goal is to 'increase take-home pay,' it would be great to not only raise the upper limit of the barrier but also to stop the invoice system, wouldn't it?
The invoicing system actually reduces take-home pay.
I tried to find accurate statistics on the number of tax-exempt businesses before the start of the invoicing system, but I couldn't find solid data. It is estimated to be around 4 million businesses.
When adopting the simplified taxation system, the assumed purchase rate varies by industry, with a 50% rate for service industries.
Roughly estimating based on a taxable revenue of about 9 million yen, the annual consumption tax amount would be around 0.4 million yen.
In essence, registering an invoice results in a reduction of 0.4 million yen in take-home pay.
A monthly reduction of over 0.03 million yen in take-home pay is significant.
It's about an 8 million yen decrease over 20 years, which is roughly equivalent to a year's income.
The only viable options are either to increase prices or to increase workload as effective countermeasures.
It is counterproductive to reduce revenue.
Well, I have no choice but to increase my market value and raise prices.
I would like to see the invoicing system abolished and included in the discussion.
After that, I would like the barrier to be raised to 10 million yen.
I don't have high expectations, so I will work hard, okay?
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