Tax Avoision (“…I say, ‘Avoision’”)

[Deep Blue]

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).

Don’t think this is correct. Lots of people confuse permanent residency for visa purposes with permanent residency for tax purposes when it’s possible to be the latter without being the former.

[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).

Don’t think this is correct. Lots of people confuse permanent residency for visa purposes with permanent residency for tax purposes when it’s possible to be the latter without being the former.

Overseas gifts and inheritances are separate issue.

[Deep Blue]

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).

Don’t think this is correct. Lots of people confuse permanent residency for visa purposes with permanent residency for tax purposes when it’s possible to be the latter without being the former.

Overseas gifts and inheritances are separate issue.

This site explains it well.

https://argentumwealth.com/japan-inheri ... 20overseas.

You are wrong to suggest those on work visa’s won’t need to pay inheritance tax on non Japan situs assets. It depends how long you’ve been in Japan, not on whether you are on a work visa or not.

[RetireJapan]

Don’t think this is correct. Lots of people confuse permanent residency for visa purposes with permanent residency for tax purposes when it’s possible to be the latter without being the former.

Overseas gifts and inheritances are separate issue.

This site explains it well.

https://argentumwealth.com/japan-inheri ... 20overseas.

You are wrong to suggest those on work visa’s won’t need to pay inheritance tax on non Japan situs assets. It depends how long you’ve been in Japan, not on whether you are on a work visa or not.

Yes, I didn't mention the ten year thing, but spouse and PR are liable from day 1. OP would not have to worry about it until after the first ten years.

[Deep Blue]

It would be great if all this mess on exactly when tax on worldwide income, inheritance tax and exit tax could be simplified but I guess it isn’t something to hold our breath for. Pretty silly to have completely different tests for different parts of the tax system.

[wanabisan]

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.

> “That guy”

Indeed

[wanabisan]

Thank you, all, for your input.

The situation is not as I hoped, but there does seem to be some possibility for strategizing vis-a-vis visas.