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

  • #46
    It sounds like a huge hassle to invest back home, but what are the other options?
    I dont mind only receiving a modest interest rate, but I will never be able to retire with my japanese savings account.

    Ive been looking for investments in Japan, but I cant find any GICs, or high interest savings accounts. Even information on mutual funds are hard to find. (My Japanese isnt great, but I can usually find what im looking for online)

    Is there anywhere i can dump some yen and expect decent interest?

    Or am I just living in a fantasy land?

    Comment


    • #47
      Originally posted by Morton View Post
      I also had to fill out a form regarding my time in Japan. I think that if you have spent one day more than 5 years in the previous 10 years you are liable.
      That's good information, but I wonder can they tax you for any of the intervening years when you weren't living in Japan? I DID sell investments during the 3 years I was in the States. It would be incredibly unfair if they could tax you on that!

      Comment


      • #48
        Originally posted by Morton View Post
        When I went the first time to the NTA my new accountant hadn't officially accepted me as a client but was only advising me through a third party. I told the tax office that I had been advised by a "pro" not to sign, hanko or pay anything. The tax official then told me that the only people the tax office would deal with were me, any close relatives (providing photo ID) and a qualified accountant. Friends, translators, financial advisors etc would not be allowed.
        Morton
        They has asked for the translator to attend so that I fully understand the seriousness of taxation responsibility, and to ensure that I know that they went easy on me this time, as an ignorant gaijin, but try it again next year and we will hammer you.

        Comment


        • #49
          Originally posted by 91Coupe View Post
          It sounds like a huge hassle to invest back home, but what are the other options?
          I dont mind only receiving a modest interest rate, but I will never be able to retire with my japanese savings account.

          Ive been looking for investments in Japan, but I cant find any GICs, or high interest savings accounts. Even information on mutual funds are hard to find. (My Japanese isnt great, but I can usually find what im looking for online)

          Is there anywhere i can dump some yen and expect decent interest?

          Or am I just living in a fantasy land?
          I've talked so someone who has been using a company called Alico Japan. So far it's the best I can find. I really can't remember/understand the detals but basically you can make 500,000 per year profit tax free (if certain criteria has been met). They have investments in Euro/USD/Aus $ etc. It's better than nothing. More importantly the Alico Japan people are all certified and know their way around Japanese tax law so everything is above board and legal.

          Personally, as I'm self-employed, I'm going to join a pension scheme for small businesses that allows for up to 840,000 yen a year to be saved. This money comes off at 100% as a business expense which will reduce my income tax, city tax, kenko hoken etc. The downside is that the money earns basically nothing.

          Personally though it's going to take me a while to recover from this financial kick in the bollocks so I won't be doing much investing over the next year or two.

          Edited to add that most of the posters here seem to be like me, just ordinary blokes trying to look out for their and their families future. The first thing I do every month, and always have done, is to make sure I save something. Being ignorant about tax and having to pay it is one thing but these automatic fines and massive interest rates added with no consideration of the true facts are the hardest thing to stomach.
          Last edited by Morton; 2010-12-15, 03:26 PM.

          Comment


          • #50
            Originally posted by Super Grover View Post
            ...So if the J. are not going to revolt, then we others should at least fend for ourselves.
            Yes – I agree that the J-government is incredibly inefficient and at times corrupt, and are thus not to be trusted with your tax monies. And, no – it wonft be changing any time soon as most Japanese like it just the way it is – there are just too many vested interests that are getting their cut. Those who are on the dole, are not likely to vote for a politician who would be willing to cut all of the subsidies – from the farmers, seamen, toll-gate operators, - to the employees of the hundreds of public corporations that in other countries would be private enterprise.

            Of course as Japan ages and the population falls, it will change – if ever so slowly, just as it is doing now – with the occasional merging of city offices, etc. But my guess is that a 100 years from now – the cooperatives will still be there, as inefficient as ever, restricting competition while serving their own group at reduced prices while gouging any outsiders.

            And of course that is where you come in – as an outsider entitled to be gouged. I certainly am not saying that you shouldnft be looking for ways to minimize your taxes, but I am saying that to break the law in avoiding taxes by dressing up transactions as something else, is likely to get you into trouble and be more costly for you in the long run.

            Comment


            • #51
              Originally posted by Keeptrying View Post
              Can I get this straight?

              I pay tax on my salary in Japan.

              I send it to my overseas bank account for when I leave Japan.

              Then I have to pay tax on it AGAIN here in Japan??

              What am I missing...???
              You are missing nothing. I have just had the wake up call from the tax office after a long hibernation, to let me know life isnt so rosy in Japan and I owe them a big bill. Overseas interest is an income, Japan now wants a cut of that cake to offset the 5% corporate tax.

              Comment


              • #52
                Originally posted by O'Hanlon View Post
                You are missing nothing. I have just had the wake up call from the tax office after a long hibernation, to let me know life isnt so rosy in Japan and I owe them a big bill. Overseas interest is an income, Japan now wants a cut of that cake to offset the 5% corporate tax.
                They have always wanted their tax on the interest, and any other income you recieve overseas - this isn't to pay for the 5% corporate tax cut, which was just announced.

                What seems to be new, is that they are doing tax audits and have full information supplied by your bank or tax authorities overseas - so you can't hide it by simply not declaring it.

                Comment


                • #53
                  Originally posted by TJrandom View Post
                  They have always wanted their tax on the interest, and any other income you recieve overseas - this isn't to pay for the 5% corporate tax cut, which was just announced.

                  What seems to be new, is that they are doing tax audits and have full information supplied by your bank or tax authorities overseas - so you can't hide it by simply not declaring it.
                  TJ
                  I am just speculating. I could be wrong. It just seems strange that so many gaijin are being tracked. Maybe this has always been the norm after a given period of residency and I was lucky. It still concerns me that such a large sum is instantly demanded and we are being monitored.

                  In the workplace there is definitely opinion being voiced that foreign employees should be laid off, if Japanese can do their job. This is a fact, not my opinion. I had to re-apply for my job in March. It will get worse as the economy tightens. I didn't save in Japan because low interest rates, and a fluctuating yen could make many years of saving worthless, if the yen plummets when I depart. I am learning, but need to keep searching to safeguard my retirement and family education fees. A tax accountant could be the first priority.

                  Nothing will change we get ripped off on the kosokudoru with toll charges and vehicle shaken tax. Society here accepts and follows and has no real consumer voice, that's why cartel pricing survives and overseas competition blocked. As gaijin we have no voice. (Thats why feedback and sharing of information on gaijinpot is so valuable)
                  Gambatte!

                  Comment


                  • #54
                    Originally posted by O'Hanlon View Post
                    TJ
                    I am just speculating. I could be wrong. It just seems strange that so many gaijin are being tracked. Maybe this has always been the norm ...
                    I think that this is new - I have not heard of it before. My guess is that it stems from the US law changes that require J-banks to report, and offers the NTA information and assistance in return.

                    Comment


                    • #55
                      Originally posted by TJrandom View Post
                      They have always wanted their tax on the interest, and any other income you recieve overseas - this isn't to pay for the 5% corporate tax cut, which was just announced.

                      What seems to be new, is that they are doing tax audits and have full information supplied by your bank or tax authorities overseas - so you can't hide it by simply not declaring it.
                      I don't think so. I think there must have been some kind of directive issued: "All right boys, go out there and collect. No breaks. They are helpless. Assess all penalties."

                      Really, I think there must have been a plan. Suddenly foreigners all over Japan people are being audited (no doubt my turn is coming), so this cannot be (TJ)random.

                      Comment


                      • #56
                        Originally posted by Super Grover View Post
                        Again, no b.s., this happened to two people I know within the last 2 months. So, be careful.


                        Originally posted by Super Grover View Post
                        Suddenly foreigners all over Japan people are being audited (no doubt my turn is coming), so this cannot be (TJ)random.

                        This is a concern for us all here, but surely two people+ is not 'foreigners all over Japan'.

                        Comment


                        • #57
                          sorry for my lack of precision -- and from your side, given all of the data I have provided, give me some leeway -- both are professors in the same city audited by the same 3 auditors within 2 weeks of each other. NOT random. The foreigners all over Japan are those commenting here. No doubt there are more who choose not to comment or who have the good sense not to come to Gaijinpot!
                          Last edited by Super Grover; 2010-12-15, 11:07 PM.

                          Comment


                          • #58
                            There is simply no incentive for an expat to become a permanent resident of Japan. You dont get any additional benefit, only additional trouble. So, why become one?

                            Just get the hell out of Japan after 3 years.

                            Comment


                            • #59
                              Originally posted by Nightwalker View Post
                              .... So, why become one?....
                              Because applying for the visa renewal every X years is tiring
                              Because not knowing if it will be extended is worrying
                              Because you want to stay longer
                              Because you like living here
                              Because you have family here
                              Because your job and career are here
                              Because other places you could live just plain suck
                              more?

                              Comment


                              • #60
                                Originally posted by Keeptrying View Post
                                This is a concern for us all here, but surely two people+ is not 'foreigners all over Japan'.
                                In my panic of the last month I think I read every page possible on the internet regarding tax, foreigners and Japan. One page I came across was a warning from KPMG that there has recently (last 2 years) been a surge in foreigners being targeted by the NTA.

                                It seems that until a couple of years ago foreigners had basically been ignored by the NTA. Now that has all changed and the NTA have started a new section specifically to target invividuals with overseas income (ie generally us gaijin). These tax officials are specifically trained, have to pass special exams and are given a higher salary.

                                One of the guys who audited me had a business card with ېŖ劯. My wife did a bit of googling of this found out quite a bit of worrying information.

                                As I said before I've been done, I'm clean and I will stay that way from now on.

                                Comment

                                Working...
                                X