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Re: Help setting up Wise
Posted: Tue Jul 18, 2023 12:34 pm
by nanaya
You can have bank account detail for your wise account in CAD:
https://wise.com/help/articles/2978083/ ... nt-details
Which can be used to receive CAD. The transfer method is a bit limited though.
You can then transfer (and convert) the received CAD to your own Japanese bank account.
Re: Help setting up Wise
Posted: Tue Jul 18, 2023 3:34 pm
by Tkydon
RetireJapan wrote: ↑Tue Jul 18, 2023 5:52 am
Tkydon wrote: ↑Tue Jul 18, 2023 4:09 am
JimNasium wrote: ↑Tue Jul 18, 2023 3:33 am
Ahh, I forgot about that. I’ll look into it. It’s probably going to be my parents sending me money so I want to make things as smooth as possible for them.
I don't know your situation, but, if your parents are sending money to you, be aware that you may be taxed on the money in Japan as Gifts if they send you gifts of more than Y1.1M in a calendar year, of as income or capital gains if it is from overseas sourced income... You should check with an accountant or the Tax Office...
Presumably this would not be a concern if the money were to pay for living expenses?
It would not be an issue if from someone who has the legal responsibility for the living expenses of a depenedent IF the living expenses are reasonable.
Payments from a parent to an independent child would not qualify as reasonable support for living expenses between persons with the legal responsibility for the living expenses
They would therefore be subject to Gift Tax.
Gift Tax is levied on the recipient if the sum of all gifts received in the Tax Year from all sources is greater Y1.1M.
Gifts between spouses are also subject to Gift Tax if they are for reasons other than reasonable living expenses, and if the recipient receives more than Y1.1M as the sum of all gifts received in the Tax Year from all sources.
Re: Help setting up Wise
Posted: Fri Aug 04, 2023 7:28 pm
by Tōhoku
Tkydon wrote: ↑Tue Jul 18, 2023 3:34 pm
RetireJapan wrote: ↑Tue Jul 18, 2023 5:52 am
Tkydon wrote: ↑Tue Jul 18, 2023 4:09 am
I don't know your situation, but, if your parents are sending money to you, be aware that you may be taxed on the money in Japan as Gifts if they send you gifts of more than Y1.1M in a calendar year, of as income or capital gains if it is from overseas sourced income... You should check with an accountant or the Tax Office...
Presumably this would not be a concern if the money were to pay for living expenses?
Yes, it would not.
I just want to double check tax situation when sending yourself money with Wise.
My wife and I have a joint account in Canada which has our savings (emplyoment income taxed locally). We then sent over ¥1.1m from this account to her bank account in Japan. Since she is essentially sending money to herself and it was taxed in Canada, would she have to pay any Japanese tax on this? My only worry is that it is a joint account with both our names.
I'm assuming not as it's not being 'gifted' to herself and it's been taxed by a country that has a double taxation agreement?
Thanks for any help!
Re: Help setting up Wise
Posted: Fri Aug 04, 2023 11:29 pm
by Beaglehound
Tōhoku wrote: ↑Fri Aug 04, 2023 7:28 pm
Tkydon wrote: ↑Tue Jul 18, 2023 3:34 pm
RetireJapan wrote: ↑Tue Jul 18, 2023 5:52 am
Presumably this would not be a concern if the money were to pay for living expenses?
Yes, it would not.
I just want to double check tax situation when sending yourself money with Wise.
My wife and I have a joint account in Canada which has our savings (emplyoment income taxed locally). We then sent over ¥1.1m from this account to her bank account in Japan. Since she is essentially sending money to herself and it was taxed in Canada, would she have to pay any Japanese tax on this? My only worry is that it is a joint account with both our names.
I'm assuming not as it's not being 'gifted' to herself and it's been taxed by a country that has a double taxation agreement?
Thanks for any help!
There should be no issue if she is resident in Canada and pays tax there. The amount sent is not enough to trigger any gift tax even if it were interpreted as half your money (550k) that was sent, though as long as her ‘contributions’ to the joint account cover the amount sent I don’t think it would be interpreted that way. And in any case she is not tax resident in Japan so gift tax should be moot.
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 12:58 pm
by Tkydon
Tōhoku wrote: ↑Fri Aug 04, 2023 7:28 pm
Tkydon wrote: ↑Tue Jul 18, 2023 3:34 pm
RetireJapan wrote: ↑Tue Jul 18, 2023 5:52 am
Presumably this would not be a concern if the money were to pay for living expenses?
Yes, it would not.
I just want to double check tax situation when sending yourself money with Wise.
My wife and I have a joint account in Canada which has our savings (emplyoment income taxed locally). We then sent over ¥1.1m from this account to her bank account in Japan. Since she is essentially sending money to herself and it was taxed in Canada, would she have to pay any Japanese tax on this? My only worry is that it is a joint account with both our names.
I'm assuming not as it's not being 'gifted' to herself and it's been taxed by a country that has a double taxation agreement?
Thanks for any help!
You should consult an Zeirishi in Japan or ask at the Regional Tax Office.
" (emplyoment income taxed locally)", in which tax year? Before or after you established residence in Japan?
As a Japanese Citizen, and resident in Japan, your wife's global income from all sources; pension, capital gains, gifts, etc. in the tax year are all taxable in Japan, whether she remits the funds to Japan or not.
Remitting funds in itself is not a taxable event.
As for you, If you are resident in Japan, and have have been resident in Japan for less than 5 years in the last 10 years, then you are considered a non-permanent resident for tax purposes , and your global income is only taxable in Japan if you remit funds to Japan in that same tax year.
If you have been resident in Japan for more than 5 years in the last 10 years, then your global income from all sources is taxable in Japan, whether you remit the funds to Japan or not.
Remitting funds in itself is not a taxable event.
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
https://www.nta.go.jp/taxes/shiraberu/s ... df/060.pdf
You should consult an Zeirishi in Japan or ask at the Regional Tax Office.
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 1:44 pm
by Beaglehound
Tkydon wrote: ↑Sat Aug 05, 2023 12:58 pm
Tōhoku wrote: ↑Fri Aug 04, 2023 7:28 pm
Tkydon wrote: ↑Tue Jul 18, 2023 3:34 pm
Yes, it would not.
I just want to double check tax situation when sending yourself money with Wise.
My wife and I have a joint account in Canada which has our savings (emplyoment income taxed locally). We then sent over ¥1.1m from this account to her bank account in Japan. Since she is essentially sending money to herself and it was taxed in Canada, would she have to pay any Japanese tax on this? My only worry is that it is a joint account with both our names.
I'm assuming not as it's not being 'gifted' to herself and it's been taxed by a country that has a double taxation agreement?
Thanks for any help!
You should consult an Zeirishi in Japan or ask at the Regional Tax Office.
" (emplyoment income taxed locally)", in which tax year? Before or after you established residence in Japan?
As a Japanese Citizen, and resident in Japan, your wife's global income from all sources; pension, capital gains, gifts, etc. in the tax year are all taxable in Japan, whether she remits the funds to Japan or not.
Remitting funds in itself is not a taxable event.
As for you, If you are resident in Japan, and have have been resident in Japan for less than 5 years in the last 10 years, then you are considered a non-permanent resident for tax purposes , and your global income is only taxable in Japan if you remit funds to Japan in that same tax year.
If you have been resident in Japan for more than 5 years in the last 10 years, then your global income from all sources is taxable in Japan, whether you remit the funds to Japan or not.
Remitting funds in itself is not a taxable event.
https://www.nta.go.jp/taxes/shiraberu/s ... df/050.pdf
https://www.nta.go.jp/taxes/shiraberu/s ... df/060.pdf
You should consult an Zeirishi in Japan or ask at the Regional Tax Office.
It isn’t clear on this thread but from posts elsewhere I think the poster and his wife are resident in Canada.
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 2:23 pm
by Tkydon
Beaglehound wrote: ↑Sat Aug 05, 2023 1:44 pm
It isn’t clear on this thread but from posts elsewhere I think the poster and his wife are resident in Canada.
JimNasium or Tohoku?
JimNasium wrote: ↑Mon Jul 17, 2023 1:33 pm
I want to set up my wise account, but I’m quite confused. If you guys wouldn’t mind helping me out, I’d be really grateful.
So my situation is I’m originally from Canada, but have been living in Japan for the past 15 years. I have a bank account with Sony Bank here, and I have a joint banking account with my parents back home in Canada.
I’d like to set up Wise to be able to transfer between the two accounts. How do I set this up? I’ll be going back to Canada in a few days for a vacation if it helps make things smoother.
'Tis a confused thread indeed.
JimNasium says he's a permanent resident for tax purposes in Japan.
He first says he wants to transfer funds between his account in Japan and his parents' account in Canada, but doesn't state which direction.
If he gifts his parents, or they gift him more than Y1.1M, it'll be subject to Gift Tax.
Later, he mentions
JimNasium wrote: ↑Tue Jul 18, 2023 3:33 am
Beaglehound wrote: ↑Mon Jul 17, 2023 1:43 pm
There should be no issue setting up a Canadian dollar account with Sony Bank (they do offer one in that currency) and sending a transfer direct to that from your Canadian bank, or vice-versa. Apologies if there is a reason you don’t want to do that and prefer Wise, but I imagine the direct route would be competitive on cost and simpler.
Ahh, I forgot about that. I’ll look into it. It’s probably going to be my parents sending me money so I want to make things as smooth as possible for them.
If he receives money from his parents more than Y1.1M, it'll be subject to Gift Tax.
As we don't have any details, JimNasium should consult a Zeirishi.
Then Tohoku says, (This should have been a separate new thread!!!)
Tōhoku wrote: ↑Fri Aug 04, 2023 7:28 pm
I just want to double check tax situation when sending yourself money with Wise.
My wife and I have a joint account in Canada which has our savings (emplyoment income taxed locally). We then sent over ¥1.1m from this account to her bank account in Japan. Since she is essentially sending money to herself and it was taxed in Canada, would she have to pay any Japanese tax on this? My only worry is that it is a joint account with both our names.
I'm assuming not as it's not being 'gifted' to herself and it's been taxed by a country that has a double taxation agreement?
Thanks for any help!
As we don't have any details regarding the source of the funds, or their locations..., Tohoku should consult a Zeirishi.
In some cases, if you send money even to yourself it CAN be taxable, or open you up to tax liability in Japan.
The Japan Canada Tax Treaty can be read here:
https://www.mof.go.jp/tax_policy/summar ... nada_e.pdf
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 2:31 pm
by Beaglehound
When I said ‘the poster’ I meant the poster I quoted, Tohoku. And I think from his post elsewhere that he and his wife are resident in Canada:
viewtopic.php?p=31701#p31701
Which means sending money in the fashion he described should be fine. Open to correction if wrong.
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 3:56 pm
by Tōhoku
Thanks for the responses ans sorry for the confusion! Should have started a new thread!
To clarify, my wife and I are not resident in Japan. We're resident in Canada. I have not been a resident in Japan at any stage yet and she hasn't been resident there much over the last 10 years (would have to check how many times she's lived there).
Re: Help setting up Wise
Posted: Sat Aug 05, 2023 4:19 pm
by Tōhoku
Also forgot to note, she is not registered as a resident with her local city hall. So when we sent the money to her account the bank was a bit confused and we had to tell them we're just sending savings to Japan. They accepted her transfer this time but since she is non-resident they said if she wants to send more money to herself next time then she will have to setup a 'non-resident bank account'. Supposedly those are some new rules that came in the last couple years.