Help with taxes

Tkydon
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Posts: 1398
Joined: Mon Nov 23, 2020 2:48 am

Re: Help with taxes

Post by Tkydon »

sakana wrote: Fri Nov 17, 2023 12:49 am I am 77, retired, originally from England with semi permanent residence in Fujiyoshida.
I am looking for a tax specialist who is familiar with UK pension and investment income and can help with filing my Japanese Tax Return and although I am a Chartered accountant who understands UK taxation I am lost when it comes to filing in Japan.
My wife who is Japanese has spoken with various accountants but they are too busy to take on more clients or are very expensive.
Please may I have any recommendations.
Thanks
Japanese Filing - Kakutei Shinkoku - is pretty straight forward.
Explanation Docs will be available shortly (Dec-Jan timeframe) for 2023 Tax Season (Feb 16 to Mar 15 2024).
I will post when the docs become available.

Under the UK-Japan Tax Treaty
https://www.mof.go.jp/tax_policy/summar ... n-UKEN.pdf
Articles 17 & 18 refer to Pension Income.
"Article 17
Subject to the provisions of paragraph 2 of Article 18 of this Convention, pensions and other similar remuneration beneficially owned by a resident of a Contracting State shall be taxable only in that Contracting State."

Depending on your Tax Residence and Domicile, you should be able to receive UK Pension Gross, free of withholding.

UK National Pension qualifies as Public Pension, so you get the Public Pension Tax Allowance. See here for details:
Page 8 (Page 12 of the PDF)
https://www.tax.metro.tokyo.lg.jp/book/ ... k2023e.pdf
Depending on situation, maybe approx Y1.2M on top of Personal Y550k and Per Dependent Y380k allowances...

So long as you have the documentation, the people at the local National Tax Office will help you file at their office (Feb 16 to Mar 15 2024).
https://www.nta.go.jp/about/organization/access/map.htm
:
:
This Guide to Japanese Taxes, English and Japanese Tai-Yaku 対訳, is now a little dated:

https://zaik.jp/books/472-4

The Publisher is not planning to publish an update for '23 Tax Season.
captainspoke
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Joined: Tue Aug 15, 2017 9:44 am

Re: Help with taxes

Post by captainspoke »

sakana wrote: Fri Nov 17, 2023 12:49 am I am 77, ... I am a Chartered accountant who understands UK taxation ...
I'm older, too. Locally the tax office is open a week or so earlier for older/retired folks. So instead of Feb 16th I would expect them to be open on the 8th-9th. However, a reservation for a time slot is required (via the LINE app, the tax office can be added to your contacts).
Tkydon wrote: Fri Nov 17, 2023 6:17 am...
So long as you have the documentation, the people at the local National Tax Office will help you file at their office (Feb 16 to Mar 15 2024).
https://www.nta.go.jp/about/organization/access/map.htm
Yes, they are nice, and willing to help. But in my honest opinion, you should not go in during the normal filing times (even the early one for the older folks) expecting that they'll help you with everything. A poor use of time resources for you, for them, and for others in the queue who also want some kind of help.

As Tkydon says, it's pretty straightforward, and since you're a chartered accountant, explaining it should definitely be on the easier side, and I'd expect that you'd understand things pretty quickly.

But it would still take some explanation. Leaving aside the pension, investment income generally needs to be recorded/declared on the date that it was paid. So a dividend from XYZ company, paid quarterly (eg, paid on 3/15, 6/15, 9/15, and 12/15) needs to be laid out on a simple spreadsheet that way (as four rows), and then the UK currency needs to be converted to yen for each of those dates. Date paid, company name/ticker symbol, the conversion rate (pounds to yen), and the resulting yen amount, totaled at the bottom.

Use this site for the f/x conversion: http://www.murc-kawasesouba.jp/fx/past_3month.php
If nothing comes back (a holiday here) back up to the next available date that a rate is given.
Use the TTM rate, not the buy, or sell, rate.

You do that for all dividends/distributions thru the calendar year, one row in the sheet for each distribution/dividend. (same for interest, but use a separate sheet since it is declared in a different place on the return here)

Sales/capital gains are just a bit more work. You need to find your average acquisition price (sometimes simple, but also can be challenging) and then via the above link convert that to yen. Which you then balance with the sale price, converted to yen on the sale date. Which will show any profit or loss. (And yes, there can be gains/losses simply due to differences in the f/x rates for when you bought and sold.)

All that isn't difficult, just some clicking around to get all the numbers down on paper.

And all that you can do before you go to the tax office--and you can even start now, doing all the rows from 01/01/2023 up to the present, and just finishing the rest of november and december just after the first of the new year.

With that in hand, then show up at the tax office, and let them help you.

*

That's a brief rundown, and really, if you're an accountant, this is pretty simple stuff. But it does take a little time, you can easily do it on your own, and once you get the hang of it, it's pretty trivial.

Also, these sheets with all the dates/transactions/currency conversions/etc get turned in with your tax return, as supporting documents. It's the totals that get put in the right places on your return. They do not need the original account statements that you've worked from, but these worksheets do go in with your return. Of course keep those original account statements if questions do come up and they ask how you have calculated something. These sheets that you turn in--pretty them up a little with headers: your full name, tax ID number, your My Number, address, phone number(s), pagination if needed and so on.

Questions?
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