Tax Avoision (“…I say, ‘Avoision’”)

[wanabisan]

Lurker, here.

I see some topics here about non-Japanese paying taxes in Japan on foreign income, foreign capital gains, and foreign inheritance.

Based on my readings, it seems like the money is being left outside of Japan.

Moral concerns aside, is there much to hear about Japan going after foreigners for failing to report on such things?

[Tkydon]

https://www.nta.go.jp/publication/pamph ... pdf/16.pdf

Pages 5 to 11 refer.

[wanabisan]

Thanks for the response, but I don’t see any such reference to my question.

Was your response intended to negate my question as moot?

[captainspoke]

Lurker, here.

I see some topics here about non-Japanese paying taxes in Japan on foreign income, foreign capital gains, and foreign inheritance.
...

Imagine being an american (in america) and asking a similar question--i.e., the US would not only go after those things, they'd nail you to the wall in the process.

And if by 'foreign income' you mean work done remotely, that is absolutely not foreign income. You were here doing the work--that's what counts--and it is irrelevant where the company is, what currency you are paid in, and where the bank is that that pay is deposited in.

Common Reporting Standard. And note the part where it says:

The new system was intended to transfer all relevant information automatically and systematically. ... As of October 2014, 51 countries had signed up to the Multilateral Competent Authority Agreement (MCAA), to automatically exchange information ...
As of July 2015, 53 jurisdictions had signed the agreement to automatically exchange information;[8] As of July 2016 83 jurisdictions had signed the agreement.

[RetireJapan]

Moral concerns aside, is there much to hear about Japan going after foreigners for failing to report on such things?

I know some people who were called into the tax office to explain certain bank transfers/transactions, which resulted in them paying back taxes and penalties.

Enforcement likely depends on how visible you are, your income/net worth, etc.

But it is getting much easier for the NTA to get information both in Japan (with My Number) and from abroad due to information sharing agreements with OECD countries. I'm guessing AI will vastly speed up this process.

In terms of this forum, we recommend following tax laws in full and do not allow posts encouraging people to break the law.

The proposed law to revoke permanent residence and possibly other visas for not paying taxes and social insurance is likely due to people avoiding taxes in the past or the impression that they do so, so some foreign residents breaking the law is likely making things worse for the rest of us.

[wanabisan]

I lived in Japan in the early 2000s and I never heard about Japan taxing foreign money/gains. If this is now the case, this is likely to affect my decision to return at some point.

Please humor me with a hypothetical.

I’m Canadian (or simply not Japanese) living in Japan on a work visa (non PR) and I inherit a house, in Canada, from my now-deceased father.

Japan insists that I report this on my Japanese taxes?

[beanhead]

I’m Canadian (or simply not Japanese) living in Japan on a work visa (non PR) and I inherit a house, in Canada, from my now-deceased father.

Japan insists that I report this on my Japanese taxes?

The topic of inheritance, taxes due etc has been covered a number of times here. You have to check to see if you are over the limit where Japan requires taxes to be paid.
The wiki is a good starting point:
https://retirewiki.jp/wiki/Inheritance_tax

Permanent residence and permanent resident for tax purposes are also different. So not having the PR 'visa'/resident status does not mean that you are not a permanent resident for tax purposes.

[RetireJapan]

I lived in Japan in the early 2000s and I never heard about Japan taxing foreign money/gains. If this is now the case, this is likely to affect my decision to return at some point.

Please humor me with a hypothetical.

I’m Canadian (or simply not Japanese) living in Japan on a work visa (non PR) and I inherit a house, in Canada, from my now-deceased father.

Japan insists that I report this on my Japanese taxes?

If you are on a work visa you do not have to pay tax on overseas gifts or inheritances (you do if you are on a spouse visa or are a permanent resident).

[TunaSki]

I lived in Japan in the early 2000s and I never heard about Japan taxing foreign money/gains. If this is now the case, this is likely to affect my decision to return at some point.

Please humor me with a hypothetical.

I’m Canadian (or simply not Japanese) living in Japan on a work visa (non PR) and I inherit a house, in Canada, from my now-deceased father.

Japan insists that I report this on my Japanese taxes?

If you are on a work visa you do not have to pay tax on overseas gifts or inheritances (you do if you are on a spouse visa or are a permanent resident).

You do after having Jusho/Kyosho In Japan for 10 years of the last 15 years.

[Moneymatters]

Please humor me with a hypothetical.

I asked my wife…
“Hypothetically, If I died tomorrow would you remarry?”
Well I’m happpy to report she said no!
Said she’s worried about upsetting Kai or Ren.

Which is odd as those aren’t the names of our kids..


I’ll see myself out.