Do you have to pay double tax when you have PR?

[plug]

Do you have to pay double tax when you have PR?

[KansaiBen]

Do you have to pay double tax when you have PR?

Only if you dont have a tax exemption agreement with your own country. Normally you don't, at least I haven't in the time I have had PR.

[chainbolt]

Do you have to pay double tax when you have PR?

Changing your status to permanent residency ("ejuken"), has no impact whatsoever on your taxes.

Confusing but true, for the tax office you are a "permanent resident" after 5 years, regardless your actual visa status.

[mikey23]

Do you suddenly split into two people when you get your PR? Stupid people on this forum. Makes me rage.

Grow a brain.

[Effected After]

Seeing as Americans do have to pay double taxes, its a valid question. His question wasn't about starting to pay double taxes, it was about whether or not he'd have to continue.

If this kind of stuff works you up into a rage, it sounds like you have some underlying mental issues you should probably get looked at.

[mikey23]

Seeing as Americans do have to pay double taxes, its a valid question. His question wasn't about starting to pay double taxes, it was about whether or not he'd have to continue.

If this kind of stuff works you up into a rage, it sounds like you have some underlying mental issues you should probably get looked at.

lol, americans have to pay double taxes in japan? LMAO, they are all dumasses for coming here then. just proved 1 theory I have to be correct, so thanks for your post!

[hml]

If this kind of stuff works you up into a rage, it sounds like you have some underlying mental issues you should probably get looked at.

Where I come from, underlying mental issues are all the rage!

[Effected After]

lol, americans have to pay double taxes in japan?

No, not in Japan.

You aren't the swiftest gazelle in the herd are you.

[mikey23]

No, not in Japan.

You aren't the swiftest gazelle in the herd are you.

forum is called gaijinpot.com

about stuff in japan if you have not heard.

if you don't make it clear what you are talking about and rather expect people to be psychic, i am thinking you are a the dumb-___ here.

[Effected After]

forum is called gaijinpot.com

about stuff in japan if you have not heard.

And we are talking about circumstances of being in Japan - in specific getting PR in Japan. Are you not reading the topic?

And if you want people to treat you nice, and give you answers without making you look stupid, maybe you should try some tact. If you had worded it differently, I would have been more than happy to explain where your mistake lay.

[mikey23]

you are too dumb to even talk to. either that or drunk. either way, please understand that I cannot waste my time with you.

[Effected After]

Haha, I love annoying the trolls to the point where they can only insult because they have nothing else left to say.

[Koenji]

Maybe the OP is refering to the situation whereby you return to your original country but maintain your Japanese PR. Then you'd be obliged to file every year in both countries, if I'm not mistaken. .

[chainbolt]

No, not in Japan.

You aren't the swiftest gazelle in the herd are you.

Of course they have, and so do the citizens of some other nations. Whether you actually do, is another question.

The OP questions is certainly legitimate, because your status as foreigner can have an impact on the taxes you have to pay here. The question about taxes and PR has been many times asked already, for example in the PR threat. Luckily PR does not have any impact.

[Effected After]

You missed the point - they don't have to pay double in Japan. They pay once to Japan, and once to the US.

[chainbolt]

You missed the point - they don't have to pay double in Japan. They pay once to Japan, and once to the US.

A valid point! http://forum.gaijinpot.com/images/icons/icon6.png

[jon]

You missed the point - they don't have to pay double in Japan. They pay once to Japan, and once to the US.

Yeah, the yanks might have to stump up double, the fools.
What about the rest of the world, or is the question in hand only related to Americans?

[Glenski]

Americans with visas or PR do not pay any taxes in the U.S. on money earned abroad unless it is over a certain amount (roughly $92,000). They do have to pay Japanese income tax on money earned in Japan, and they also have to pay U.S. income tax on money earned in the U.S.

[Bella Bowtruckle]

It might be worth noting that after living here 5 years you are apparently considered a 'permanent resident' for tax purposes (i.e. all income taxable) even if you don't have the actual PR status.

[chainbolt]

It might be worth noting that after living here 5 years you are apparently considered a 'permanent resident' for tax purposes (i.e. all income taxable) even if you don't have the actual PR status.

Indeed, but that was already explained several times.

[ericson]

Right guys double taxation. This is when a person is liable for taxes in more than one country at a particular point in time. Normally to be required to pay tax, most countries have what is know as a permanent resident for tax purposes. This means that if you have stayed in a country like japan for 5 years, you are required to pay tax like a japanese citizen. This is not to be confused with double taxation.

Double taxation occurs when you are gaining income from different countries, or have moved to another country and are still liable for taxes in the country you left. To counter this many countries have double tax exemption. This means that you still have to declare your full world wide income to the relavent tax offices. I'll give you my example;

I left my country and law states that you required to pay tax on income earned if you have been a resident in the country for a period of 186 days of the specified tax year. I am now working in Japan and am earning a salary here while I still have to pay this year's tax back home. This year I will file my taxes back home and in Japan, however, I will declare my home country income in Japan, and my Japan income in my home country.

In my case double taxation treaties are in effect between the two countries. This means that back home, I will have to pay all the tax that is owed only on what I have earned back home. In Japan I will have to pay all the tax on money I earned here. Now according to Japan my taxable income is higher than what they tax me on local earnings, and vice versa back home due to international income. The tax rate back home is currently at 17% so what that means is back home I am liable for more tax than here in Japan, but... Back home they will actually reduce the taxable amount based on what I have paid already and give me a tax credit for what I have paid here in Japan. They will then adjust the tax rate back home to be the home rate 17% - japan rate on the portion of income that has not been taxed by them. So I will only pay additional taxes on the rate above which japan did not tax.

Next year however, I would not have worked in my home country, but I will still be required to submit the tax return with earnings that has been made back home which is obviously going to be 0. So there will be no tax applied. I will not have to advise them of my earnings here in Japan because I will not be a resident for tax purposes back home next year.

So the short and simple explanation is that you have to pay tax where it is due, but to prevent double taxation, one country will only charge you tax on the remaining balance of taxable income if the tax rates are different providing that you are still a resident for tax purposes. This is why it is important to let the tax office know you will go overseas and change your address as soon as possible. Let's say for example both countries charge tax at 10%, you will not be liable for additional tax in either country. If double taxation treaties are not in force, you will have to declare your worldwide income in Japan and pay the full Japanese tax rate, and you will have to declare the full amount back home and pay their full tax rate. So you may end up paying up to 25 - 50 % if you do not sort your paper work out. Most people don't declare their world wide income and so gets around it... Not too good, they will not just take your money for nothing if you do it correctly.

The best part is that there are very few countries that do not respect double taxation treaties. So if you are a westerner teaching English it is almost 100% safe to assume that you will be covered by double taxation treaties and your paycheck won't go up in smoke as soon as you get it, just make sure you let them know that you pay tax in other countries as well.

[Effected After]

America is the big one here however, as they make you pay tax on anything over I think $92k earned outside of America, even if taxes have been paid on that money outside America, and the American isn't living in America. That's double taxation.

[Plats]

America is the big one here however, as they make you pay tax on anything over I think $92k earned outside of America, even if taxes have been paid on that money outside America, and the American isn't living in America. That's double taxation.

But you can subtract foreign taxes paid which brings you back to single taxation.

[Effected After]

I don't even know what that means, and I'm not an American, so it's not particularly relevant to me. But I'm sure some of the Americans on here would be interested in hearing more.

[Plats]

I don't even know what that means, and I'm not an American, so it's not particularly relevant to me. But I'm sure some of the Americans on here would be interested in hearing more.

All Americans know about the foreign tax credit.

[chainbolt]

Right guys double taxation. This is when a person is liable for taxes in more than one country at a particular point in time. Normally to be required to pay tax, most countries have what is know as a permanent resident for tax purposes. This means that if you have stayed in a country like japan for 5 years, you are required to pay tax like a japanese citizen. This is not to be confused with double taxation.

Double taxation occurs when you are gaining income from different countries, or have moved to another country and are still liable for taxes in the country you left. To counter this many countries have double tax exemption. This means that you still have to declare your full world wide income to the relavent tax offices. I'll give you my example;

I left my country and law states that you required to pay tax on income earned if you have been a resident in the country for a period of 186 days of the specified tax year. I am now working in Japan and am earning a salary here while I still have to pay this year's tax back home. This year I will file my taxes back home and in Japan, however, I will declare my home country income in Japan, and my Japan income in my home country.

In my case double taxation treaties are in effect between the two countries. This means that back home, I will have to pay all the tax that is owed only on what I have earned back home. In Japan I will have to pay all the tax on money I earned here. Now according to Japan my taxable income is higher than what they tax me on local earnings, and vice versa back home due to international income. The tax rate back home is currently at 17% so what that means is back home I am liable for more tax than here in Japan, but... Back home they will actually reduce the taxable amount based on what I have paid already and give me a tax credit for what I have paid here in Japan. They will then adjust the tax rate back home to be the home rate 17% - japan rate on the portion of income that has not been taxed by them. So I will only pay additional taxes on the rate above which japan did not tax.

Next year however, I would not have worked in my home country, but I will still be required to submit the tax return with earnings that has been made back home which is obviously going to be 0. So there will be no tax applied. I will not have to advise them of my earnings here in Japan because I will not be a resident for tax purposes back home next year.

So the short and simple explanation is that you have to pay tax where it is due, but to prevent double taxation, one country will only charge you tax on the remaining balance of taxable income if the tax rates are different providing that you are still a resident for tax purposes. This is why it is important to let the tax office know you will go overseas and change your address as soon as possible. Let's say for example both countries charge tax at 10%, you will not be liable for additional tax in either country. If double taxation treaties are not in force, you will have to declare your worldwide income in Japan and pay the full Japanese tax rate, and you will have to declare the full amount back home and pay their full tax rate. So you may end up paying up to 25 - 50 % if you do not sort your paper work out. Most people don't declare their world wide income and so gets around it... Not too good, they will not just take your money for nothing if you do it correctly.

The best part is that there are very few countries that do not respect double taxation treaties. So if you are a westerner teaching English it is almost 100% safe to assume that you will be covered by double taxation treaties and your paycheck won't go up in smoke as soon as you get it, just make sure you let them know that you pay tax in other countries as well.

Thanx, but he was asking whether you have to pay double tax as a "PR". Short answer: No.

Most people don't declare their world wide income and so gets around it... Not too good, they will not just take your money for nothing if you do it correctly.

You better do it correclty. After 5 years of residency, your entire worldwide income is taxable in Japan. Sure, some people don't declare their income abroad in Japan (rent, interest, dividends, etc). Some of them have entually to pay dearly for this: There are regular NTA tax audits here, in particular for foreigners it seems. They will ask you to disclose your bank and security account abroad and go back 5 years, line by line. And anyway more and more countries exchange tax related data with Japan. If by chance you are an UK, Australian, or US citizen you can be sure that any income in these countries is automatically reported to the NTA.