RetireJapan

My understanding was that non-permanent residency for tax purposes need to fulfil (a) sub-5yrs residency and (b) lack of firm intention to stay permanently (or beyond 5 years??) in Japan. My source for this was an English version of a tax manual + meeting with tax office when I originally gained residence in Japan 3.5 years ago and met with the tax officials to register as a freelancer, and my memory of the exact wording is fuzzy, hence the question marks. If this is correct (not guaranteed), I think it would follow that PR status disqualifies one from condition (b)... at least, that's how the tax authorities would probably see it, even if there are hypothetical circumstances where one could have PR but not intend to stay in Japan long-term.

I have notification to receive PR status via the spouse route before 5 years of residency and will pick up the new zairyu card in the winter hol. My motivation behind asking the original Q about re-entry permits is to assess whether to get one whilst at immigration. As Ben says, it could be good insurance, but I'm trying to read the Ts and Cs of this insurance policy, as it were, to see whether to splurge on extra revenue stamps.

Beaglehound wrote: ↑Wed Dec 02, 2020 1:49 pm

Kanto wrote: ↑Wed Dec 02, 2020 1:27 pm

adamu wrote: ↑Wed Dec 02, 2020 1:09 pm

Is this true? My understanding is that immigration status and residency for tax purposes are completely separate, and that PR for tax purposes = 5 years residence. You can have immigration PR after a year + processing time with the points system.

My understanding was PR visa triggered PR tax status. However, they use the terms interchangeably, which is a bit frustrating.

There might be a small subset of people who would need to enquire.

Maybe not so small given that those on a spouse visa can also apply for PR after a year in Japan, provided they’ve been married a while. Am sure some on the forum are, or have been, in this position. Since I am about to apply for PR through this route myself, it would be interesting to hear if anyone has clarified.

You need to have at least a 3 year visa, be married for 3 years, as well as provided 3 years worth of tax history, correct?

There are also special visas as well for those who are "leaders in their field" etc etc...

Due to the terminology confusion, I think researching in English is a bit difficult.

なる居住者・非居住者・永住者・非永住者 -> I am not sure which apply for taxation or visa status.

kuma wrote: ↑Wed Dec 02, 2020 2:02 pm My understanding was that non-permanent residency for tax purposes need to fulfil (a) sub-5yrs residency and (b) lack of firm intention to stay permanently (or beyond 5 years??) in Japan. My source for this was an English version of a tax manual + meeting with tax office when I originally gained residence in Japan 3.5 years ago and met with the tax officials to register as a freelancer, and my memory of the exact wording is fuzzy, hence the question marks. If this is correct (not guaranteed), I think it would follow that PR status disqualifies one from condition (b)... at least, that's how the tax authorities would probably see it, even if there are hypothetical circumstances where one could have PR but not intend to stay in Japan long-term.

I have notification to receive PR status via the spouse route before 5 years of residency and will pick up the new zairyu card in the winter hol. My motivation behind asking the original Q about re-entry permits is to assess whether to get one whilst at immigration. As Ben says, it could be good insurance, but I'm trying to read the Ts and Cs of this insurance policy, as it were, to see whether to splurge on extra revenue stamps.

That rings a bell in terms of intention to stay in Japan, and yes, it would be hard to argue you weren’t planning to stay permanently with PR.

Kanto wrote: ↑Wed Dec 02, 2020 2:07 pm

Beaglehound wrote: ↑Wed Dec 02, 2020 1:49 pm

Kanto wrote: ↑Wed Dec 02, 2020 1:27 pm

My understanding was PR visa triggered PR tax status. However, they use the terms interchangeably, which is a bit frustrating.

There might be a small subset of people who would need to enquire.

Maybe not so small given that those on a spouse visa can also apply for PR after a year in Japan, provided they’ve been married a while. Am sure some on the forum are, or have been, in this position. Since I am about to apply for PR through this route myself, it would be interesting to hear if anyone has clarified.

You need to have at least a 3 year visa, be married for 3 years, as well as provided 3 years worth of tax history, correct?

There are also special visas as well for those who are "leaders in their field" etc etc...

Due to the terminology confusion, I think researching in English is a bit difficult.

なる居住者・非居住者・永住者・非永住者 -> I am not sure which apply for taxation or visa status.

Yes, the three years residence tax payments is a weird one (as well as 2 years pension and health insurance payments) since they allow you to apply after a year in Japan! It’s likely many folk in that position won’t have paid any residence tax after a year. From reading other posts on here, it’s not an enforced rule, unsurprisingly given the logical impossibility.

Are there any been-there-done-that folk who could answer the below?

1. What physical form does the re-entry permit take?
2. What is the procedure when leaving/re-entering Japan with the re-entry permit?

And another Q: when exactly are you allowed to renew the photo on your zairyu card for PR? This is due to happen every 7 years... but are there stipulations about how close to the expiry date this must be done, as with driving licenses?

I renewed my card in May, took about 5 minutes total (but here in the sticks, not dealing w/tokyo immigration offices). The only question/request was to take my mask off so they could see the pic was me.

Beaglehound wrote: ↑Wed Dec 02, 2020 2:20 pm

Kanto wrote: ↑Wed Dec 02, 2020 2:07 pm You need to have at least a 3 year visa, be married for 3 years, as well as provided 3 years worth of tax history, correct?

There are also special visas as well for those who are "leaders in their field" etc etc...

Due to the terminology confusion, I think researching in English is a bit difficult.

なる居住者・非居住者・永住者・非永住者 -> I am not sure which apply for taxation or visa status.

Yes, the three years residence tax payments is a weird one (as well as 2 years pension and health insurance payments) since they allow you to apply after a year in Japan! It’s likely many folk in that position won’t have paid any residence tax after a year. From reading other posts on here, it’s not an enforced rule, unsurprisingly given the logical impossibility.

When applying via the Highly Skilled Professional route with more than 80 points, the requirements for pension and tax contributions are changed to 1 year - although for pension they still want all the years if you've been resident longer than that. For tax you just have to get a certificate that says you don't owe anything, which is easy if nothing was due I suppose

Picked up my new zairyu card today, but did not get a re-entry permit this time. May do in the future, and thanks to all those who answered queries.

My understanding was that non-permanent residency for tax purposes need to fulfil (a) sub-5yrs residency and (b) lack of firm intention to stay permanently (or beyond 5 years??) in Japan. My source for this was an English version of a tax manual + meeting with tax office when I originally gained residence in Japan 3.5 years ago and met with the tax officials to register as a freelancer, and my memory of the exact wording is fuzzy, hence the question marks. If this is correct (not guaranteed), I think it would follow that PR status disqualifies one from condition (b)... at least, that's how the tax authorities would probably see it, even if there are hypothetical circumstances where one could have PR but not intend to stay in Japan long-term.

Maybe this has now been simplified... the 2020 Income Tax Guide (English version, see pages 5 and 6) lists clearly and simply the criteria for judging residency status for tax purposes (non-resident, non-permanent resident, permanent resident) and does NOT include an 'intent to stay' clause; it is solely a judgement of time of residency within the last 10 years:

1. Classification for residential status
1) Residents
Any individual who has a “JUSHO (domicile)” or owns a “KYOSHO (residence)” continuously for one
year or more is classified as a resident.
Among residents, any individual of non Japanese nationality who has had a domicile or a residence
in Japan for an aggregate period of five years or less within the preceding ten years is classified as a
non-permanent resident.
2) Non-residents
Any individual other than the residents mentioned in “1) Residents” above is classified as a
non-resident.

https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
[The manual goes on to note further rules/cases, but the above is the crux of it]

If this is the rule in its entirety (which I can't guarantee), then I am a permanent resident for visa purposes, but a non-permanent resident for tax purposes (<5yrs residence in Japan).

Wondering if I could/should realise some (modest) capital gains on UK investments whilst NOT PR for tax purposes in Japan, and then NOT remit the money to Japan. In this case, the gains may fall within UK allowances (claimed as UK citizen abroad) but may fall outside the scope of Japanese taxation. Or would it be that since the investments are mine as an individual and that I am resident in Japan, it would be considered Japan-sourced income even though the investments are located in the UK and even though some of them predate my first arrival in Japan?