RetireJapan

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.

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.

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.

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).

Good advice. Thanks again.