The Company Housing Calculator shows the amount of benefit for both the employee and the company when housing is provided to the employee.
Company Housing in Japan gives tax and social insurance costs savings to both the employee and company when housing is provided to the employee. The lease agreement is made between the employer and property owner and the employer bears the cost of the rent.
When calculating the savings, the percentage method is commonly used to get an approximate. A legal rent rate of 10% is applied. The valuation method follows a formula decided by the National Tax Agency: [(0.20%)*Allocated Taxable Base of House]+[(0.22%)*Allocated Taxable Base of Land]+[12/(3.3)*Floor Space]. In Japan, tsubo is used for measurement of floor space. 1 tsubo = 3.3m2
HTM's payroll service includes an employee housing system which tracks employee apartment leases held by the company, including fees, deposits, monthly rent payments, and payments required by the employee.
These payroll calculators are not intended nor are they a substitute for professional advice. These payroll calculations are complex and qualified professional payroll advice should be obtained prior to taking any action.