Income Tax for Spouse Visa When Remitting $

[aly262]

Hello,

I was wondering if anyone can help just answering this. I'm currently thinking of moving to Japan and need to understand the tax implication on my money if i so wish to remit to Japan.

So assuming if i have $1m this year, $ made prior to moving to Japan, decided to remit the entire $1m after i moved to Japan on a Spouse visa, I will not be liable to pay income tax for the $1m right? I personally would think that i am not required to pay tax for money earned prior to living in japan. I read thru the NTA's income tax guide and still have no clue.

Thank you.

[RetireJapan]

Merely moving money does not result in a taxable event. You may get asked where it came from, but there is no tax due unless you have other foreign earned income during that tax year.

[aly262]

Thanks for the quick reply RetireJapan. You raised a good question. If the $1m is acquired after i sell my stocks, house and other assets in 2021 prior to the move, that means i am liability for paying Japan tax if i move in 2021? The best way to avoid any confusion is to make sure i wait until 2022 to make sure the tax man has no chance to refute the claim? Does japan tax system has a different tax year definition Jan-Dec?

Thanks again.

[RetireJapan]

As long as you sell prior to the move, you should be fine (although given the amounts, I would recommend consulting a professional or at least the Japanese tax office to make sure).

[aly262]

Good advice. Thanks again.