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Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Tue Jul 27, 2021 3:34 am
by Tkydon
On the subject of Immigration:

A re-entry permit cannot be issued / renewed outside Japan.

Everyone who leaves Japan with the intent to return, needs either a Special Re-Entry Permit (tick the box on the Embarkation (Departure) Card), or a Single or Multiple Re-Entry Permit issued by the Immigration Bureau.

https://www.isa.go.jp/en/applications/g ... ukoku.html
https://www.isa.go.jp/en/applications/g ... ukoku.html

Many people have been caught out by COVID-19.
People with Permanent Resident Immigration Status have left Japan on Special Re-Entry Permit, expecting to come back to Japan within a year. On Special Re-Entry Permit you can come and go as you please, but would have to return within 365 days each time.
They have then not been able to return to Japan within the year due to COVID Entry Restrictions. Their PR status has then lapsed, and they face the risk of losing their PR status.
In this special case, Immigration has stated that they will provide a period of amnesty under these special mitigating circumstances.
When Japan lifts the Entry restrictions, those Lapsed PR people will have a 6 month window where they will have to apply for a regular Long-Term Visa at the Japanese Embassy or Consulate in their location, and when they travel into Japan, the Immigration staff will convert the Long-Term Visa back to PR Status at the border.
If they miss the 6 month amnesty window, they will lose their residence status, and have to apply for a visa from scratch.

Therefore, if you plan to leave Japan for any reason with the intent to return, it is highly recommended that you SHOULD apply for a Multiple Re-Entry Permit at Immigration. Then you will not be limited by the One Year Special Re-Entry Permit limit. The Multiple Re-Entry Permit will be valid for the shorter of 5 years or the remaining time on your Zairyu Card, and you will have to return to Japan to renew the Multiple Re-Entry Permit and / or Zairyu Card, as necessary.

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Tue Jul 27, 2021 9:10 am
by RetireJapan
Tkydon wrote: Tue Jul 27, 2021 3:34 am Therefore, if you plan to leave Japan for any reason with the intent to return, it is highly recommended that you SHOULD apply for a Multiple Re-Entry Permit at Immigration. Then you will not be limited by the One Year Special Re-Entry Permit limit. The Multiple Re-Entry Permit will be valid for the shorter of 5 years or the remaining time on your Zairyu Card, and you will have to return to Japan to renew the Multiple Re-Entry Permit and / or Zairyu Card, as necessary.
I agree completely. Seems like a cheap insurance policy.

https://www.retirejapan.com/blog/immigration-stuff/

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Mon Aug 02, 2021 4:31 am
by TJKansai
An Aussie friend is leaving Japan next spring, after about 10 years here. He has a couple properties in Australia which, once sold, will have some serious gains. I mentioned the exit tax and he was clueless. He said he expects to have to pay some hefty cap gains in Oz though, so at the end of the day I wonder if he will owe the Japanese government anything.

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Mon Aug 02, 2021 6:06 am
by RetireJapan
TJKansai wrote: Mon Aug 02, 2021 4:31 am An Aussie friend is leaving Japan next spring, after about 10 years here. He has a couple properties in Australia which, once sold, will have some serious gains. I mentioned the exit tax and he was clueless. He said he expects to have to pay some hefty cap gains in Oz though, so at the end of the day I wonder if he will owe the Japanese government anything.
Real Estate is not counted towards the exit tax (neither is cash). Only securities and similar.

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Tue Aug 03, 2021 6:04 am
by TJKansai
RetireJapan wrote: Mon Aug 02, 2021 6:06 am
TJKansai wrote: Mon Aug 02, 2021 4:31 am An Aussie friend is leaving Japan next spring, after about 10 years here. He has a couple properties in Australia which, once sold, will have some serious gains. I mentioned the exit tax and he was clueless. He said he expects to have to pay some hefty cap gains in Oz though, so at the end of the day I wonder if he will owe the Japanese government anything.
Real Estate is not counted towards the exit tax (neither is cash). Only securities and similar.
I'm sure he'll be glad to hear that.

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Thu Aug 05, 2021 11:14 am
by Tkydon
TJKansai wrote: Mon Aug 02, 2021 4:31 am An Aussie friend is leaving Japan next spring, after about 10 years here. He has a couple properties in Australia which, once sold, will have some serious gains. I mentioned the exit tax and he was clueless. He said he expects to have to pay some hefty cap gains in Oz though, so at the end of the day I wonder if he will owe the Japanese government anything.
The answer is it depends. Does he plan to terminate his residency and surrender his Zairyu Card, or maintain PR for potential return to Japan at some time in the future?

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Fri Aug 06, 2021 2:54 am
by TJKansai
Tkydon wrote: Thu Aug 05, 2021 11:14 am
TJKansai wrote: Mon Aug 02, 2021 4:31 am An Aussie friend is leaving Japan next spring, after about 10 years here. He has a couple properties in Australia which, once sold, will have some serious gains. I mentioned the exit tax and he was clueless. He said he expects to have to pay some hefty cap gains in Oz though, so at the end of the day I wonder if he will owe the Japanese government anything.
The answer is it depends. Does he plan to terminate his residency and surrender his Zairyu Card, or maintain PR for potential return to Japan at some time in the future?
He isn't PR. I think he will terminate the residency. Something about wanting to be able to qualify for the Aussie Super.

Re: How do I lose my Japanese tax residency and return to my home country’s residency for tax?

Posted: Fri Aug 06, 2021 3:57 am
by Tkydon
Your friend needs to consult with a qualified tax accountant.