RetireJapan

Incredible, thank you so much Tkydon!

If no one works and income comes only from stocks, I guess wife and I will fall in the unemployed category? Which means only 16.520¥ x 2 per month for the pension?

And the 1+2+3 costs are unavoidable and payable by all including us (and according to the taxable income) for health insurance. If we apply for Japanese private health insurance do we avoid these 1+2+3 costs? Or public makes sense since the public health system in Japan is great?

Wife has completed the minimum 10y of insurance contributions, but we thought Japanese pensions are so low it’s better to invest any money ourselves. When we are in Japan we ll probably do the NISAs mainly for gains tax reasons.

gouro wrote: ↑Wed Jan 24, 2024 3:01 pm Incredible, thank you so much Tkydon!

If no one works and income comes only from stocks, I guess wife and I will fall in the unemployed category? Which means only 16.520¥ x 2 per month for the pension?

And the 1+2+3 costs are unavoidable and payable by all including us (and according to the taxable income) for health insurance. If we apply for Japanese private health insurance do we avoid these 1+2+3 costs? Or public makes sense since the public health system in Japan is great?

Wife has completed the minimum 10y of insurance contributions, but we thought Japanese pensions are so low it’s better to invest any money ourselves. When we are in Japan we ll probably do the NISAs mainly for gains tax reasons.

By Private Health Insurance, I mean Health Insurance Unions that Companies usually belong to.
If you are 'unemployed', I don't know if you would be able to find one and opt out of the National NHI... NHI is good and cheap...
For the minimum 10 years contributions, your wife will received 120/480 (1/4) of a Japanese Basic National Pension.
I recommend she contribute from overseas to get her qualifying Months up closer to the max 480 months.
Look at that as a diversification and entirely separate than your other investments...

See here:
https://www.nenkin.go.jp/international/ ... nsion.html

You will both have to contribute when you are living in Japan.

Thanks, we ll ask the tax office, I want to establish the basic/unavoidable monthly costs and then see our options for housing and future/pension…

gouro wrote: ↑Wed Jan 24, 2024 5:29 pm Thanks, we ll ask the tax office, I want to establish the basic/unavoidable monthly costs and then see our options for housing and future/pension…

Assuming no children:

Basic Pension: Y16,520 x 2 = Y33,040 Per Month = Y396,480 Per Year

National Healthcare Insurance - Hamamatsu (First Year with no previous year's income):
Y22,000 + Y25,000 x 2 + Y8,000 + 11,000 x 2 + Y14,500 x 2 = Y131,000 Per Year = Y13,100 Per Month (Payable 10 months of the year - May to March)
(From the second May, you have to add about 10% of previous year's taxable income, or 1% per month)

So, Y46,140 Per Month

(I will edit as I think of more..)

Income Tax on Investment Income at about 20% on Taxable Income in Japan (If Broker in Japan, they will withhold 20% Tax)
(If not, then payable in the April and June After Year End, so you should squirrel away 20% to a separate account whenever you have a taxable event)

Tkydon wrote: ↑Thu Jan 25, 2024 3:20 am

gouro wrote: ↑Wed Jan 24, 2024 5:29 pm Thanks, we ll ask the tax office, I want to establish the basic/unavoidable monthly costs and then see our options for housing and future/pension…

Assuming no children:

Basic Pension: Y16,520 x 2 = Y33,040 Per Month = Y396,480 Per Year

National Healthcare Insurance - Hamamatsu (First Year with no previous year's income):
Y22,000 + Y25,000 x 2 + Y14,500 x 2 = Y101,000 Per Year = Y10,100 Per Month (Payable 10 months of the year - May to March)
(From the second May, you have to add about 10% of previous year's taxable income, or 1% per month)

So, Y43,1040 Per Month

(I will edit as I think of more..)

Income Tax on Investment Income at about 20% on Taxable Income in Japan (If Broker in Japan, they will withhold 20% Tax)
(If not, then payable in the April and June After Year End, so you should squirrel away 20% to a separate account whenever you have a taxable event)

Why would they be paying income tax on investments? Either capital gains tax or tax on dividends, neither of which count as income, no?

You can also opt out of the pension due to low income which many Japanese FIRE types seem to do.

Tkydon wrote: ↑Thu Jan 25, 2024 3:20 am

gouro wrote: ↑Wed Jan 24, 2024 5:29 pm Thanks, we ll ask the tax office, I want to establish the basic/unavoidable monthly costs and then see our options for housing and future/pension…

Assuming no children:

Basic Pension: Y16,520 x 2 = Y33,040 Per Month = Y396,480 Per Year

National Healthcare Insurance - Hamamatsu (First Year with no previous year's income):
Y22,000 + Y25,000 x 2 + Y14,500 x 2 = Y101,000 Per Year = Y10,100 Per Month (Payable 10 months of the year - May to March)
(From the second May, you have to add about 10% of previous year's taxable income, or 1% per month)

So, Y43,1040 Per Month

...

Sorry. Why isn't the 後期高齢者 支援金分 payable?

RetireJapan wrote: ↑Thu Jan 25, 2024 4:50 am Why would they be paying income tax on investments? Either capital gains tax or tax on dividends, neither of which count as income, no?
You can also opt out of the pension due to low income which many Japanese FIRE types seem to do.

Interest, Dividends, and Capital Gains all come under the general heading of Income, along with employment / salary income, real-estate rental income, and so on... 収入

Some of which you can elect to be taxed as Aggregate Income or as Separate Taxation Method Income, depending on which is more beneficial to you.

Tkydon wrote: ↑Thu Jan 25, 2024 6:59 am

RetireJapan wrote: ↑Thu Jan 25, 2024 4:50 am Why would they be paying income tax on investments? Either capital gains tax or tax on dividends, neither of which count as income, no?
You can also opt out of the pension due to low income which many Japanese FIRE types seem to do.

Interest, Dividends, and Capital Gains all come under the general heading of Income, along with employment / salary income, real-estate rental income, and so on... 収入

Interesting. But not if they are in a tokutei kouza presumably (or NISA)?

Moneymatters wrote: ↑Thu Jan 25, 2024 6:44 am Sorry. Why isn't the 後期高齢者 支援金分 payable?

Corrected.

RetireJapan wrote: ↑Thu Jan 25, 2024 7:15 am

Tkydon wrote: ↑Thu Jan 25, 2024 6:59 am

RetireJapan wrote: ↑Thu Jan 25, 2024 4:50 am Why would they be paying income tax on investments? Either capital gains tax or tax on dividends, neither of which count as income, no?
You can also opt out of the pension due to low income which many Japanese FIRE types seem to do.

Interest, Dividends, and Capital Gains all come under the general heading of Income, along with employment / salary income, real-estate rental income, and so on... 収入

Interesting. But not if they are in a tokutei kouza presumably (or NISA)?

Tokutei Kouza is still taxable. Just the tax is withheld at source, which I mentioned...

Tkydon wrote: ↑Thu Jan 25, 2024 3:20 am Income Tax on Investment Income at about 20% on Taxable Income in Japan (If Broker in Japan, they will withhold 20% Tax)
(If not, then payable in the April and June After Year End, so you should squirrel away 20% to a separate account whenever you have a taxable event)

The OP will be moving to Japan. First Year in Japan.
He will be classed as Non-Resident for at least part, if not all of the first calendar year.
If the OP establishes a residence (or purchases a property and takes up residence) in Japan, he then transitions from Non-Resident Status to Resident - Non-Permanent Resident for Tax Purposes.
If the portfolio is transferred to Japan, will have tax withheld at source as Non-Resident Status.
The OP never had any opportunity to pay anything into NISA. Income will not be coming from NISA (or very small amount).
The OP's Portfolio will either be transferred to Japan in a Tokutei Account (Taxes withheld at source, but maybe needs to be Resident to qualify ??), or a Regular Account (Taxes withheld at source for first year as Non-Resident, and not in subsequent years, Japan Filing Required), or off-shore (Japan Taxes not withheld at source, Japan Filing required for Portion of Income remitted to Japan. (Possibly not required for part or all of the first year).
Wife is Japanese, so will immediately be taxable as returning Resident Japanese Citizen.

Did I forget anything?