Doitsuyama
2010-05-15, 05:13 PM
Here's the situation: I am a German national, but not registered in Germany and hence not liable to pay any taxes in my home country. But be that as it may, if you are investing with a German bank it is their duty to keep 25% of your revenue after each sale of stocks. There is a possibility to hand them proof that I don't have any other income in Germany which frees them from keeping the 25%, but I wonder if it is in my interest to do so -
Let's assume I did hand them the form. In that case, I would be completely tax free in Germany, but would have the obligation to declare my revenues in Japan. As far as I know, this is 20% from all the revenues if you are trading foreign stocks. This leads to two questions right away:
1. Since I am in Japan only for two and a half years, do I really have to declare any income outside of Japan? I read that foreigners are only obliged to do so after having lived in Japan for 5 years, but I am also aware that Japan and Germany have a taxation agreement that might override this rule.
2. If I pay 20% taxes on my revenues in Japan, do I still have to pay city tax for my income if I have no other work than trading stocks?
In case I decide against handing them the form and they deduct the 25%, there should theoretically nothing left to be paid in Japan according to the double-taxation agreement. The question is:
3. If I transfer some of these after-tax revenues to Japan, am I completely free from any tax obligations or is this money somehow treated as my income for which I have to pay city tax?
I hope these questions are not too specific - more general answers are of course welcome!
Let's assume I did hand them the form. In that case, I would be completely tax free in Germany, but would have the obligation to declare my revenues in Japan. As far as I know, this is 20% from all the revenues if you are trading foreign stocks. This leads to two questions right away:
1. Since I am in Japan only for two and a half years, do I really have to declare any income outside of Japan? I read that foreigners are only obliged to do so after having lived in Japan for 5 years, but I am also aware that Japan and Germany have a taxation agreement that might override this rule.
2. If I pay 20% taxes on my revenues in Japan, do I still have to pay city tax for my income if I have no other work than trading stocks?
In case I decide against handing them the form and they deduct the 25%, there should theoretically nothing left to be paid in Japan according to the double-taxation agreement. The question is:
3. If I transfer some of these after-tax revenues to Japan, am I completely free from any tax obligations or is this money somehow treated as my income for which I have to pay city tax?
I hope these questions are not too specific - more general answers are of course welcome!