No, not a bad move as if you are a tax resident in Japan you have to pay tax on the gains no matter where the money is. I had the same policy, cashed in after 10 years and simply reported the gain to my accountant who included it in my tax return. You were paying in yen and got yen back so I think you just simply subtract the amount put in from the amount taken out and submit the balance as your gain.
A lot of that supposed 10 year bonus is just a recycling of the upfront management fees that you paid at the beginning. I made hardly anything over 10 years but sent it from Hong Kong to the UK and I had been paying in yen at the time of Brexit, so made a bit on the good Sterling yen exchange. If you are tranferring a bit to Japan in one go, I think you might be contacted by the Japanese tax office.
Thanks to the great work of Retire Japan, most long term expat residents in Japan are not investing in those so called 'offshore' investments, any longer.
Thank you for your insight! I totally agree about the bonus. It really feels like little more than a payback of some of the initial charges and fees. Those fees were pretty brutal, so I’m more than happy to be finished with it.
Regarding the tax situation in Japan, I’ve already filed taxes through my company for last year. Since the surrender payment was deposited into my bank on December 30th, I assume I need to include it in my tax return. Should I ask my company if they can refile my tax return for the past year, or should I just wait to be contacted by the tax office? I don’t want anyone thinking I’m trying to hide anything, but I’m not sure if my company will be willing to assist with the paperwork again.
Speaking of paperwork, do I need documents to show how much I paid into the policy versus the final payment? Apologies for all the very basic questions. As you can probably tell, I’m quite new to all things investing. Hopefully, with some further research on the Retire Japan forum and site, I’ll improve.
I'm afraid I can't help you much on this as I'm self employed and use an accountant to do my taxes. If I remember correctly, I just told them how much I had paid in and showed them the paper with the amount I got out and they did whatever it is they have to do.
A lot of that supposed 10 year bonus is just a recycling of the upfront management fees that you paid at the beginning. I made hardly anything over 10 years but sent it from Hong Kong to the UK and I had been paying in yen at the time of Brexit, so made a bit on the good Sterling yen exchange. If you are tranferring a bit to Japan in one go, I think you might be contacted by the Japanese tax office.
Thanks to the great work of Retire Japan, most long term expat residents in Japan are not investing in those so called 'offshore' investments, any longer.
Thank you for your insight! I totally agree about the bonus. It really feels like little more than a payback of some of the initial charges and fees. Those fees were pretty brutal, so I’m more than happy to be finished with it.
Regarding the tax situation in Japan, I’ve already filed taxes through my company for last year. Since the surrender payment was deposited into my bank on December 30th, I assume I need to include it in my tax return. Should I ask my company if they can refile my tax return for the past year, or should I just wait to be contacted by the tax office? I don’t want anyone thinking I’m trying to hide anything, but I’m not sure if my company will be willing to assist with the paperwork again.
Speaking of paperwork, do I need documents to show how much I paid into the policy versus the final payment? Apologies for all the very basic questions. As you can probably tell, I’m quite new to all things investing. Hopefully, with some further research on the Retire Japan forum and site, I’ll improve.
I'm afraid I can't help you much on this as I'm self employed and use an accountant to do my taxes. If I remember correctly, I just told them how much I had paid in and showed them the paper with the amount I got out and they did whatever it is they have to do. Might be worth just going and asking the tax office.