No, but if you have been here for less than 5 years in the last 10 years, transfers can definitely affect your tax exposure in Japan.misoandpickles wrote: ↑Tue May 23, 2023 3:07 amTkydon, could you explain why this is relevant? Does tax exposure in Japan affect transfers?
How long have you been in Japan?
Whether you have been in Japan for less than 5 years in the last 10 years, or more, and the source of the funds, and
if you have been in Japan for less than 5 years in the last 10 years,
whether you transfer the funds in the same year they are earned, and
whether you have other foreign sourced income in the same year as the transfer, or
whether they were just savings sitting in your overseas bank account on 31 Dec of the previous year
all have a bearing on whether you will have any tax to pay or not.
It doesn't matter what the currency the funds are in. It matters where they came from, and when...
If there is no taxable event, and the funds were just transferred from savings, then you may be able to transfer them tax free, but the bank will definitely ask for details of the source of funds, especially if the transfer is more than Y1M, and report that to the National Tax Agency, and they will also ask for details of the source of funds...
If you have been in Japan for more than 5 years in the last 10 years, you can ignore the above. Foreign Sourced Income is taxable, whether you remit the funds to Japan or not.
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
You should consult a professional to discuss the entirety of your circumstances if there is a chance that transferring funds might expose you to tax liability.