Announcement

Collapse

The GaijinPot Forum Is Closed

Please join us on our new Facebook Group.
See more
See less

Top

Collapse

Be wary of your investments -- the TAXMAN is watching

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Originally posted by Nagoya_hope View Post
    Does anyone have any experience with how the 5 year rule works?

    For instance, if I moved to Japan on July 1, 2006 when would I be liable for taxes on worldwide income?
    a) January 1, 2011
    b) July 1, 2011 (Pay only half a years tax on worldwide income for 2011)
    c) January 1, 2012


    Any help is appreciated.
    I fear, they will insist on 1 January 2011. You should call the local tax office,

    Comment


    • Originally posted by chainbolt View Post
      I fear, they will insist on 1 January 2011. You should call the local tax office,
      Probably. Although unless you do something to draw attention to yourself I wouldn't worry too much about it.

      However, you can now by a house and depreciated it against your income, again not worth doing if you're from the states but if you're not it's gold.

      Comment


      • Originally posted by nkjapan View Post
        However, you can now by a house and depreciated it against your income, again not worth doing if you're from the states but if you're not it's gold.
        Are you sure about this? The tax guideline for 2011 has not added anything in this regard.

        Comment


        • Originally posted by nkjapan View Post
          However, you can now by a house and depreciated it against your income, again not worth doing if you're from the states but if you're not it's gold.
          Are you sure about this? The tax guideline for 2011 has not added anything in this regard.

          Comment


          • This was an awesome thread. I'm leaving Japan but I will be sure to forward this information to friends of mine who I think it should concern. Thanks to all for spending so much time making it all quite clear, or as clear as something like this can possibly be. I have one question though. I was in Japan for 13 years. During that time I sent no money abroad, made no investments, apart from just before leaving, when I sent about 1m out of the country. I then returned for one year after a year off. Then I returned this year after two years out of the country. After reading this thread, I'm having a teacher101 moment and imagining being held at the airport for auditing upon my departure soon. Can somebody put me at ease. I do worry sometimes about unnecessary stuff. By the way, I never earned more than about 3.6MJY a year.

            Comment


            • Originally posted by MrS View Post
              This was an awesome thread. I'm leaving Japan but I will be sure to forward this information to friends of mine who I think it should concern. Thanks to all for spending so much time making it all quite clear, or as clear as something like this can possibly be. I have one question though. I was in Japan for 13 years. During that time I sent no money abroad, made no investments, apart from just before leaving, when I sent about 1m out of the country. I then returned for one year after a year off. Then I returned this year after two years out of the country. After reading this thread, I'm having a teacher101 moment and imagining being held at the airport for auditing upon my departure soon. Can somebody put me at ease. I do worry sometimes about unnecessary stuff. By the way, I never earned more than about 3.6MJY a year.
              After all what I know, you would not be on the taxman's radar screen for an audit. There is no triggering event other than the 1M remittance some years ago, and your salary is rather small.

              You should be aware though that - strictly speaking - your tax status is still "permanent resident" because your "aggregated period of stay in Japan within 10 years" is more than 5 years. This means that all your income worldwide has to be declared in Japan and is taxable here.

              Comment


              • Originally posted by MrS View Post
                This was an awesome thread. I'm leaving Japan but I will be sure to forward this information to friends of mine who I think it should concern. Thanks to all for spending so much time making it all quite clear, or as clear as something like this can possibly be. I have one question though. I was in Japan for 13 years. During that time I sent no money abroad, made no investments, apart from just before leaving, when I sent about 1m out of the country. I then returned for one year after a year off. Then I returned this year after two years out of the country. After reading this thread, I'm having a teacher101 moment and imagining being held at the airport for auditing upon my departure soon. Can somebody put me at ease. I do worry sometimes about unnecessary stuff. By the way, I never earned more than about 3.6MJY a year.
                RUN HOMER RUN!

                na, they won't be holding you for that, not a chance.

                Comment


                • [QUOTE=MrS;1237509]This was an awesome thread. I'm leaving Japan but I will be sure to forward this information to friends of mine who I think it should concern. Thanks to all for spending so much time making it all quite clear, or as clear as something like this can possibly be. I have one question though. I was in Japan for 13 years. During that time I sent no money abroad, made no investments, apart from just before leaving, when I sent about 1m out of the country. I then returned for one year after a year off. Then I returned this year after two years out of the country. After reading this thread, I'm having a teacher101 moment and imagining being held at the airport for auditing upon my departure soon. Can somebody put me at ease. I do worry sometimes about unnecessary stuff. By the way, I never earned more than about 3.6MJY a year

                  ------------------------------------------------------------------------------------------------------------------------------------------------------------
                  You should be OK . No trigger, tranfer or offshore interest bearing fund

                  I just made my yearly pilgrimage to pay for my sins. Once on the radar, they have got you. I hope my 250k tax bill will filter down to the to the people of Fukushima and not some TEPCO subsidy or bribe
                  .

                  Comment


                  • A couple more questions on tax, which I don't think have been covered in the thread so far.

                    1) If I was to inherit say 75,000 pounds (about 10 million yen) sometime in the future, how would that be seen by the Japanese NTA? Would I have to pay tax on it as income or just on the extra interest that it generated?

                    2) I'm currently regularly swapping Japanese yen into pounds within my Shinsei bank account, about 100,000 yen at at time, i.e., no money is going overseas, since I reckon the yen is not going to sustain its high value. If I was to make a profit from changing yen to pounds and then back to yen sometime in the future, would that count as taxable income?

                    Comment


                    • Originally posted by cucashopboy View Post
                      A couple more questions on tax, which I don't think have been covered in the thread so far.

                      1) If I was to inherit say 75,000 pounds (about 10 million yen) sometime in the future, how would that be seen by the Japanese NTA? Would I have to pay tax on it as income or just on the extra interest that it generated?
                      As long as the money isn`t transferred into Japan you should be fine.

                      Comment


                      • Originally posted by Ken44 View Post
                        As long as the money isn`t transferred into Japan you should be fine.
                        most probably yes. but don't forget: a NTA audit will also cover your accounts overseas, and the US, UK, Australia tax offices report income or interest there to the NTA
                        Last edited by chainbolt; 2012-04-21, 08:27 AM.

                        Comment


                        • Originally posted by cucashopboy View Post
                          2) I'm currently regularly swapping Japanese yen into pounds within my Shinsei bank account, about 100,000 yen at at time, i.e., no money is going overseas, since I reckon the yen is not going to sustain its high value. If I was to make a profit from changing yen to pounds and then back to yen sometime in the future, would that count as taxable income?
                          Yes, I believe so. There were some cases in the news a couple years ago or so about housewives who had been FX trading as a "hobby" in their spare time, made a profit and didn't [realize they needed to] declare. The NTA found out about it and took them to the cleaners.

                          Comment


                          • Originally posted by cucashopboy View Post
                            A couple more questions on tax, which I don't think have been covered in the thread so far.

                            1) If I was to inherit say 75,000 pounds (about 10 million yen) sometime in the future, how would that be seen by the Japanese NTA? Would I have to pay tax on it as income or just on the extra interest that it generated?
                            If the original estate (not just your portion) - was under 50 million yen then no tax is due.

                            Comment


                            • Originally posted by chainbolt View Post
                              most probably yes. but don't forget: a NTA audit will also cover your accounts overseas, and the US, UK, Australia tax offices report income or interest there to the NTA
                              Right so don`t transfer large sums of money into Japan and there won`t be a reason for an audit.

                              I`ve never had any trouble with either the Japanese or US tax authorities but then I am very careful when moving money around. I don`t buy into the idea that gaijins are being "targeted." However, if you aren`t careful your banking transactions can trigger a potential audit if the amounts are excessive (1 million yen in Japan or $10,000 back home.)

                              Comment


                              • Originally posted by Ken44 View Post
                                I am very careful when moving money around. I don`t buy into the idea that gaijins are being "targeted." However, if you aren`t careful your banking transactions can trigger a potential audit if the amounts are excessive (1 million yen in Japan or $10,000 back home.)
                                Exactly my thoughts. I think transferring money from or to Japan should be avoided as much as possible. If anything, a transfer could be a trigger for an audit - and of course when your home tax office is reporting income at home to the NTA (which seems to be regularly the case for US, UK and Australian citizens) and you "forgot" to declare it here.

                                Comment

                                Working...
                                X