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 minamon View Post
    Yikes! This means that nearly every foreigner in Japan is breaking the tax law...

    Nearly everyone of us has some sort of bank account / insurance fund / pension fund etc., and I would guess that very few of us declare all that stuff. Irrespective of tax, it is quite a hassle digging up all the paperwork.

    And if you do declare all overseas stuff, it seems to me that this may like saying to the J tax office "please check me out", probably causing more hassle than keeping quiet about it.

    So it's a case of risking not declaring everything, or of declaring everthing and having a lot of hassle and paying more taxes.
    For J-taxes, I am fairly certain that you only have to declare assets if you earn over yen20m that year - so most of us should be safe. Even then, you don't itemize or provide account numbers, etc. - instead gust give totals by asset category (real estate; bank deposits, stocks, etc.). And you donft say which ones are in which countries, or even outside of Japan. Finally, you donft give your method of valuation either. So to the degree that you have reported somewhat reasonably, you are safe.

    Comment


    • Originally posted by TJrandom View Post
      For J-taxes, I am fairly certain that you only have to declare assets if you earn over yen20m that year - so most of us should be safe. Even then, you don't itemize or provide account numbers, etc. - instead gust give totals by asset category (real estate; bank deposits, stocks, etc.). And you donft say which ones are in which countries, or even outside of Japan. Finally, you donft give your method of valuation either. So to the degree that you have reported somewhat reasonably, you are safe.

      No disrespect at all, but does anyone have an 'absolutely certain' take on this?

      Comment


      • Originally posted by Keeptrying View Post
        No disrespect at all, but does anyone have an 'absolutely certain' take on this?
        Take a look at page 61 of this PDF – the yen20m was right. There is no standard form for this – just use Word or Excel to word process it. I have done so in prior years and have never been challenged.

        By the way – this is a new document for the 2010 tax year – that was just posted to this site during this past week – replacing the 2009 document that was there last week.

        http://www.nta.go.jp/tetsuzuki/shink...010/pdf/43.pdf

        Comment


        • Wait, we only declare if we've earned 20 million yen on our foreign assets that year? As in, about $240,000 US?

          I was all worried over nothing. As a young guy only having started investing a few years ago, I'm nowhere near to that kind of money in interest, dividends, or even sales of shares.

          Some of you people have apparently been in the game for a good number of years to be having this problem.

          Comment


          • Originally posted by Teacher101 View Post
            Wait, we only declare if we've earned 20 million yen on our foreign assets that year? As in, about $240,000 US?

            I was all worried over nothing. As a young guy only having started investing a few years ago, I'm nowhere near to that kind of money in interest, dividends, or even sales of shares.

            Some of you people have apparently been in the game for a good number of years to be having this problem.
            Not quite.... you report all assets if you have reportable/J-taxable world-wide EARNINGS (salary, interest, rents, etc.) in aggregate that total over yen 20mm in a year. This is not just FOREIGN earningsc.

            Comment


            • Ok, well that is an important distinction.

              Personally I'm still a ways away from those sorts of numbers...

              Comment


              • Originally posted by TJrandom View Post
                Not quite.... you report all assets if you have reportable/J-taxable world-wide EARNINGS (salary, interest, rents, etc.) in aggregate that total over yen 20mm in a year. This is not just FOREIGN earningsc.

                OK, but if your average uni teacher is earning 20 million per year, I must be doing something wrong.

                Is the OP in this category? Hence making the thread a lot less threatening and having 95% of GPers sighing with relief and we count our meager savings overseas..?

                Comment


                • Reporting your overseas assets and reporting your overseas income are two different things.

                  If you have been here a day over 5 years you must pay tax on all your worldwide income regardless of the value of your assets. I would guess that the vast majority of foreigners here over 5 years will have a tax liability of some amount.

                  Comment


                  • Originally posted by TJrandom View Post
                    For J-taxes, I am fairly certain that you only have to declare assets if you earn over yen20m that year - so most of us should be safe. Even then, you don't itemize or provide account numbers, etc. - instead gust give totals by asset category (real estate; bank deposits, stocks, etc.). And you donft say which ones are in which countries, or even outside of Japan. Finally, you donft give your method of valuation either. So to the degree that you have reported somewhat reasonably, you are safe.
                    This just can't be true. I had declared (fully reported) income well in excess of 20 mill. in 2003, 4 and 5. Didn't have to do that at all. Unless this rule was brought in after 2005, I find this a little hard to believe. What's your source?

                    Comment


                    • Originally posted by minamon View Post
                      Yikes! This means that nearly every foreigner in Japan is breaking the tax law...

                      Nearly everyone of us has some sort of bank account / insurance fund / pension fund etc., and I would guess that very few of us declare all that stuff. Irrespective of tax, it is quite a hassle digging up all the paperwork.

                      And if you do declare all overseas stuff, it seems to me that this may like saying to the J tax office "please check me out", probably causing more hassle than keeping quiet about it.

                      So it's a case of risking not declaring everything, or of declaring everthing and having a lot of hassle and paying more taxes.
                      Right. And once found out, you have to pay lots of penalties and all tax "owing." It bites!

                      Comment


                      • Originally posted by TJrandom View Post
                        For J-taxes, I am fairly certain that you only have to declare assets if you earn over yen20m that year - so most of us should be safe. Even then, you don't itemize or provide account numbers, etc. - instead gust give totals by asset category (real estate; bank deposits, stocks, etc.). And you donft say which ones are in which countries, or even outside of Japan. Finally, you donft give your method of valuation either. So to the degree that you have reported somewhat reasonably, you are safe.
                        No, this is incorrect. I am absolutely sure. You are required, by law, even written in English, to declare ALL world income if you have been here over 5 years. As for being vague, sure, UNTIL you are audited.
                        Last edited by Super Grover; 2010-12-22, 10:48 PM.

                        Comment


                        • Originally posted by Super Grover View Post
                          No, this is incorrect. I am absolutely sure. You are required, by law, even written in English, to declare ALL world income if you have been here over 5 years. As for being vague, sure, UNTIL you are audited.
                          Income and assets are not the same thing.

                          Comment


                          • Originally posted by iago View Post
                            Income and assets are not the same thing.
                            Well, duh. But if you write some cheques for a house, land, Mercedes, they can ask and you have to tell.
                            I can say this with absolute certainty.

                            Comment


                            • Originally posted by Super Grover View Post
                              Well, duh. But if you write some cheques for a house, land, Mercedes, they can ask and you have to tell.
                              I can say this with absolute certainty.
                              "Well, duh"?

                              Well argued.

                              The point is, you countered a statement about assets with a statement about income.

                              Comment


                              • bank deposits, stocks

                                TJ Random included these, too. they are not assets, they are income (if the stocks have been sold)

                                Comment

                                Working...
                                X