Skip to main content

How Much Tax Will Shitara Have to Pay on His 100 Million Yen NR Bonus? What About Pyeongchang Gold Medalist Takagi?



Huge bonuses are just flying around this week.

On Feb. 28 the Nidec corporation, parent company of Pyeongchang Winter Olympics women's speed skating double gold medalist Nana Takagi's sponsor Nidec Sankyo, announced that it would award her a bonus of 40 million yen (~$378,000 USD) for her gold medals. The JOC and Japan Skating Federation will each award Takagi and additional 10 million yen, bringing her total to 60 million yen (~$568,000 USD).

At almost the same time, on Feb. 26 Tokyo Marathon Yuta Shitara (Honda) received a 100 million yen bonus (~$946,000 USD) from the National Corporate Athletics Federation for setting a new Japanese national record of 2:06:11 at the Feb. 25 Tokyo Marathon.

The million-dollar question is how much tax will they have to pay? Bonuses from the JOC and member organizations, 5 million yen for gold, 2 million for silver, and 1 million for bronze, are tax-exempt. Bonuses from other organizations and sponsors are subject to taxation.

In Takagi's case, this means that she is liable for taxes on the 40 million yen from Nidec, while the remaining 20 million yen is tax-free. In Shitara's case, since the National Corporate Athletics Federation is not a JOC member organization, he must pay tax on the full 100 million yen.

How much will that be? According to Eiji Hitoda, a tax accountant with the Keihan General Accounting Office, Shitara's 100 million will be treated as one-time income. The actual amount due will depend upon a variety of factors, but essentially after a special deduction of 500,000 yen and multiplication of the resulting amount by 0.5, Shitara will have to pay 45% tax on the remaining amount for a total of 22,387,500 yen (~$212,000 USD) due. In addition, he must pay 497,500 yen in resident taxes, bringing his total tax liability to 27,362,500 yen (~$259,000 USD). As a result, his take-home earnings from the bonus will amount to 72,637,500 yen (~$687,000 USD).

The tax liability on Takagi's 40 million yen will be calculated the same way at a rate of 40%, meaning her taxes will total roughly 12 million yen (~$114,000 USD).

Incidentally, National Corporate Athletics Federation stated that athletes who break the Japanese national record in the marathon are only eligible to win the 100 million yen bonus once per year. With the fiscal year ending Mar. 31, Shitara would not receive another bonus if he were to break the national record again before then. However, after the start of the new fiscal year on Apr. 1 he will be eligible to win the 100 million yen bonus again if he breaks his own record in the coming year. If another athlete breaks Shitara's record they will be paid the 100 million yen bonus.

Shitara plans to take time off until April and then begin to ramp back up starting in May. We can look forward to the prospect of him shaving a bit off the record again in the future. The National Corporate Athletics Federation will reward his efforts and those of other athletes with the Project Exceed bonus system until the end of March, 2020.

Translator's note: The numbers above don't include the 4 million yen in prize money or 5 million yen NR bonus he won directly from the Tokyo Marathon or any other unpublished time bonuses, appearance fees or sponsor bonuses. More on his payday here.

source article:
https://www.zakzak.co.jp/spo/news/180302/spo1803020004-n1.html
translated by Brett Larner

Comments

Most-Read This Week

Toyota On Fire - Weekend Road Race Roundup

Everything right now in Japanese distance is about qualifying for September's MGC Race 2020 Olympic marathon trials. On the men's side Toyota currently leads the way, Yuma Hattori running 2:07:27, Taku Fujimoto 2:07:57 and Chihiro Miyawaki 2:08:45 last year to qualify. Five more Toyota runners ran big today to set up some exciting last-shot bids at qualifying in Tokyo and Lake Biwa.

The National Corporate Half Marathon men's race went out relatively conservatively with a pack of 30 rolling through 10 km in 29:28. A series of runners including 35-year-old full-time-working amateur Takahiro Nakamura (Kyocera Kagoshima) took turns trying to get it moving before Amos Kurgat (Chudenko) took off for good to win unchallenged in 1:01:06. Along with Kenyans Paul Kuira (Konica Minolta) and Patrick Muendo Mwaka (Aisan Kogyo) Toyota's trio of Hideyuki Tanaka, Tsubasa Hayakawa and Minato Oishi emerged at the front of a chase group of 14.

As the pace picked up over the last 5 km th…

Endo and Matsuzaki Break National Records in Boston

Indoor track is pretty much non-existant in Japan, but in the last few years more Japanese athletes have been heading to the States after ekiden season to give it a go and coming back with national records. Two more records fell at Friday's David Hemery Valentine Invitational in Boston.

First up, in his indoor debut 20-year-old Hyuga Endo (Sumitomo Denko) ran 13:27.81 to break the indoor 5000 m national record set five years ago in New York by Suguru Osako by 0.19. Endo was one of Japan's all-time best high schoolers. Now in his second year in the corporate leagues after opting to skip university he is coached by Yasuyuki Watanabe, Osako's former coach at Waseda University. Also in the same race, Hiroki Matsueda (Fujitsu) was 6th in 13:47.64.

Three hours later, Riko Matsuzaki (Sekisui Kagaku) ran 9:00.86 in the women's 3000 m, taking 0.53 off the national record set way back in 1999 by Akiko Kawashima at the Maebashi World Indoor Championships. Matsuzaki is in the mid…

Beppu-Oita Marathon to Review Staff Training After Interpreter Refers to African Athletes as "Chimpanzees"

On Feb. 14 the organizers of the Beppu-Oita Mainichi Marathon confirmed that a local woman in her fifties who served as an interpreter at this year's race had published a blog post in which she referred to the African athletes on whose behalf she had worked as "chimpanzees." The woman said she had no malicious or racist intent behind her comments, but a spokesperson for the organizers called her choice of words "inappropriate." Organizers plan to review their training and guidance procedures for all race management staff members.

The Beppu-Oita Mainichi Marathon took place in the two cities on Feb. 3. According to the spokesperson, the blog to which the woman posted the comments is for members of a sports club to which she belongs to report on what they have been doing. On Feb. 10 she wrote about her work with the African athletes, posting it with public access so that anyone could read it. She described the struggle of talking to the African athletes, saying …