Will Japan copy the new British ISA?

[Tsumitate Wrestler]

Invest offshore, done that, got the T-shirt and I would say most of my profit was taken away by exorbitant fees. Give me an index fund in a Ideco or NISA wrapping any day of the week.

If you are tax resident in Japan, how does investing off-shore help you avoid taxes? I invested in an off-shore plan once, but you still have to pay tax in Japan on your gains at Japanese rates, don't you? Or is there something I'm missing (probably!)?

I plan to leave Japan before cashing them out. Even if it’s for a short time, the financial imperative to do so is enormous.

Are you aware of Exit tax?

https://www.grantthornton.jp/globalasse ... 202206.pdf

Individuals subject to exit tax
a)Holding relevant financial assets worth JPY100
million or more in total
b)Resident in Japan for more than 5 years of the
previous 10 years

Following financial assets must be included to relevant
assets when individuals calculate the value of the relevant
assets.
a) Financial assets without unrealized capital gain
b) Securities at NISA account
c) Financial assets held overseas

I am very impressed with your knowledge of the British economy and its fiscal dilemmas for a non-Brit.

It's due to my darn Economist subscription.

[Deep Blue]

Are you aware of Exit tax?

https://www.grantthornton.jp/globalasse ... 202206.pdf

Individuals subject to exit tax
a)Holding relevant financial assets worth JPY100
million or more in total
b)Resident in Japan for more than 5 years of the
previous 10 years

Following financial assets must be included to relevant
assets when individuals calculate the value of the relevant
assets.
a) Financial assets without unrealized capital gain
b) Securities at NISA account
c) Financial assets held overseas

Yes, it doesn't apply to me. This is the key reason why taking PR would be financial suicide for me.

[sutebayashi]

I feel that if Japan reduced its top end rates they’d end up with a greater tax take in the end.

Amen! I would say it’s not just the income tax rates, but other aspects like gift/inheritance tax too. People waste their time and money getting into tax avoidance schemes, distorting economic behavior, wasting scarce economic resources.

My theory is that Japan did not have a culture of inheritance tax, but rather passing down (and perhaps squandering family wealth), but with the post war systems set up, Japanese people had to accept - but with various work arounds.

When Japan’s finances do need a reset, I hope we get to keep our overseas assets…

[Deep Blue]

I feel that if Japan reduced its top end rates they’d end up with a greater tax take in the end.

I completely agree there would be less unproductive tax avoidance if they reduced the tax rates.

Amen! I would say it’s not just the income tax rates, but other aspects like gift/inheritance tax too. People waste their time and money getting into tax avoidance schemes, distorting economic behavior, wasting scarce economic resources.

My theory is that Japan did not have a culture of inheritance tax, but rather passing down (and perhaps squandering family wealth), but with the post war systems set up, Japanese people had to accept - but with various work arounds.

When Japan’s finances do need a reset, I hope we get to keep our overseas assets…

When you compare Tokyo to Singapore or Hong Kong, it’s on another level entirely for quality of life. There are so many people working in finance or law or other professions that would jump at the chance to live in Tokyo. But very few of them are prepare to take the immense financial hit Japan would impose on them.

With the surrounding ecosystem of schools, clubs, medical services etc that would expand or open it would be a non-trivial boost to the economy - you only have to see how it works elsewhere. You wouldn’t even need a 15% tax rate as I believe people would be willing pay a higher rate to live in Tokyo. But not 55%+ and tax on dividends, global income, capital gains, inheritances, gifts and all the other fiendish ways Japan nickel and dimes us.

[Wales4rugbyWC23]

I feel that if Japan reduced its top end rates they’d end up with a greater tax take in the end.

I completely agree there would be less unproductive tax avoidance if they reduced the tax rates.

Amen! I would say it’s not just the income tax rates, but other aspects like gift/inheritance tax too. People waste their time and money getting into tax avoidance schemes, distorting economic behavior, wasting scarce economic resources.

My theory is that Japan did not have a culture of inheritance tax, but rather passing down (and perhaps squandering family wealth), but with the post war systems set up, Japanese people had to accept - but with various work arounds.

When Japan’s finances do need a reset, I hope we get to keep our overseas assets…

When you compare Tokyo to Singapore or Hong Kong, it’s on another level entirely for quality of life. There are so many people working in finance or law or other professions that would jump at the chance to live in Tokyo. But very few of them are prepare to take the immense financial hit Japan would impose on them.

With the surrounding ecosystem of schools, clubs, medical services etc that would expand or open it would be a non-trivial boost to the economy - you only have to see how it works elsewhere. You wouldn’t even need a 15% tax rate as I believe people would be willing pay a higher rate to live in Tokyo. But not 55%+ and tax on dividends, global income, capital gains, inheritances, gifts and all the other fiendish ways Japan nickel and dimes us.

Cheapest cigarettes in the OECD that'll overcome any inhibitions of paying half your salary in tax.

[Deep Blue]

And fags help with any concerns your pension will run out too early!