Monetary limit to remittances from overseas

[Spica]

Hi all,
Newbie question here.
Before this financial year (end of March) is out I’ll be having an inheritance transferred from Ireland. With the yen as it is, I was also thinking of cashing in another overseas investment. What I was wondering is if there is a monetary limit per year for remittances from overseas that I should stay under for tax purposes? I’ll have to pay some tax but I don’t want to pay more than necessary. If I need to I’ll defer one or the other until after April.
Thanks in advance for all advice.

[RetireJapan]

It will partly depend on your visa/status of residence in Japan, and how long you have been here.

[Tkydon]

Hi all,
Newbie question here.
Before this financial year (end of March) is out I’ll be having an inheritance transferred from Ireland. With the yen as it is, I was also thinking of cashing in another overseas investment. What I was wondering is if there is a monetary limit per year for remittances from overseas that I should stay under for tax purposes? I’ll have to pay some tax but I don’t want to pay more than necessary. If I need to I’ll defer one or the other until after April.
Thanks in advance for all advice.

Financial Year End in Japan is the same as the Calendar Year; 31-Dec.
Not End of March.

You then file the Income Tax Return - Kakutei Shinkoku by March 14 following the end of the year...

There is no limit per year for remittances from overseas.

Remitting money to Japan is not in itself a taxable event.

The tax situation depends on How long you have been resident in Japan.

Inheritances are taxed differently and separately than Income.

https://retirewiki.jp/wiki/Inheritance_tax

For Inheritance Tax the Value of the Estate is as of the date of death, converted at the Exchange rate on that day, and if any Inheritance Tax is due, the Inheritance Tax Return must be filed before the 10 month anniversary of the death.

For Income, including Capital Gains, the tax return must be filed by 14 March following the year in which the income was received.

The explanation for 2023 is here:
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf

The doc for 2024 Tax Year is not yet available (probably beginning Jan 2025).

You should consult a Tax Accountant, especially for the Inheritance Tax

https://chester-tax.com/plan/global-inheritance_en.html

[Spica]

Thanks for the replies, very grateful.

Sorry for mentioning how long I’ve been here, I know it matters in areas of tax. Been here over 30 years. Thanks for correcting me on the tax year, not sure what got into my head there!

Actually, about the inheritance situation. My dad died in May last year (2023) but his estate still hasn’t been finalised as it was split between Ireland and the UK. The UK portion of the estate seems to be the problem because of Brexit. The solicitor hopes to have it all finalised pretty soon but it could be either side of the New Year. As the estate will be valued by the exchange rate on the day he passed away, my calculations (still don’t know the exact amount I’ll be receiving) put me on on or over the tax allowance. I haven’t informed the tax office yet about the receiving the inheritance. If I am over, has anyone had experience of how the tax office will view me not disclosing within 10 months? I heard they may slap an extra 5% tax on me…

Really appreciate all the good advice.

[Tkydon]

Thanks for the replies, very grateful.

Sorry for mentioning how long I’ve been here, I know it matters in areas of tax. Been here over 30 years. Thanks for correcting me on the tax year, not sure what got into my head there!

Actually, about the inheritance situation. My dad died in May last year (2023) but his estate still hasn’t been finalised as it was split between Ireland and the UK. The UK portion of the estate seems to be the problem because of Brexit. The solicitor hopes to have it all finalised pretty soon but it could be either side of the New Year. As the estate will be valued by the exchange rate on the day he passed away, my calculations (still don’t know the exact amount I’ll be receiving) put me on on or over the tax allowance. I haven’t informed the tax office yet about the receiving the inheritance. If I am over, has anyone had experience of how the tax office will view me not disclosing within 10 months? I heard they may slap an extra 5% tax on me…

Really appreciate all the good advice.

No tax to pay and no filing necessary if under the Basic Inheritance Deduction of Y30M + Y6M x No. of Statutory Heirs.

Under Japanese Law, even if not settled, if you need to file, you needed to file the First Draft Inheritance Tax Return by March 2024 and pay Estimated Inheritance Tax, IF the inheritance for all Heirs and Beneficiaries in Japan exceeded Y30M + Y6M per Statutory Heir.
You could then amend the filing when finalized, for additional tax or for a refund.
There is a punitive charge for not making the first filing on time, if filing was necessary.

Your best bet would be if the Inheritance of all Heirs and Beneficiaries in Japan (you) came in under the Basic Inheritance Deduction of Y30M + Y6M x No. of Statutory Heirs.
Your father's Spouse still alive? (Mother, Step-Mother?)
Any brothers or sisters, or step- brothers or sisters on your father's side? Alive? Or Dead with surviving Children?
And you, all count as Statutory Heirs.

Calculate the Basic Inheritance Deduction for all Statutory Heirs / Exchange Rate on the date of your father's death, and advise the Solicitor that that is the threshold for the total Inheritance for all heirs and beneficiaries in Japan (you), over which Inheritance Tax would be due... and find out how much over the threshold it might be...

The calculations are nightmarish if over the threshold.

[Spica]

Thanks again for the reply.

It’s just me and my two older sisters living as my mum passed away before my dad. So my limit will be 48m yen. Hmm… probably going to be over that. Do you think I should pop down the tax office now and explain the situation now, or just let things develop. Damed if I do and damed if I don’t maybe?

Thanks for the advice. Still no word on when the estate will be cleared.

[RetireJapan]

Thanks again for the reply.

It’s just me and my two older sisters living as my mum passed away before my dad. So my limit will be 48m yen. Hmm… probably going to be over that. Do you think I should pop down the tax office now and explain the situation now, or just let things develop. Damed if I do and damed if I don’t maybe?

Thanks for the advice. Still no word on when the estate will be cleared.

If your sisters are not in Japan, you get the entire tax-free allowance against your share of the inheritance.

[Spica]

Thanks again.

They are back in Ireland so I guess I will get the full allowance.
Still in two minds whether I should go a discuss it now with the tax office or just see how it goes when the estate is complete.

Thanks for creating this forum. Great help to those of us in the wilds of Inaka!