RetireJapan

Hi everyone.

Thanks in advance for your comments. It's greatly appreciated.
Please pardon these dummy questions on taxes. In addition to what I've read around (which is obviously not good enough), really wish I could understand these and do everything right and not miss a thing.

1. My iDeco (23k円/mth) & TsumitateNISA(33k円/mth) setup are still on process. When I do start investing into them, may I ask what do I need to do on tax reporting period? Do I only write it in the tax report, or nothing at all?
2. Same goes for Tokutei Account. When I start buying funds into it, anything to do on tax reporting period? Do I need to pay/report anything although I only invest and not selling?
3. If I ever had a minor income (i.e. govt bond / international stocks) / gift / inheritance / etc. from overseas, and transferring the funds to Japan (from/to my name) for living, I believe the incoming funds are taxable. But how do I know how much tax exactly to pay and how? Do I self-report it when the funds come and get taxed? Report on tax reporting period and get taxed? I'm on spouse visa if that matters.

Thank you!

Do you usually submit a tax return, or do nenmatsu chousei?

adamu wrote: ↑Sun Sep 12, 2021 6:30 am Do you usually submit a tax return, or do nenmatsu chousei?

I submitted a tax return myself for 2020 as I just started working in the company I am in now at that time.
For 2021 I believe I/they will do a nenmatsu chousei.

There are many qualifying questions that would affect the answers:

Q1. What is your nationality?
Q2. You say you're on a Spouse Visa?
Q3. Do you have any Overseas Income; Capital Gains, Dividends, Rental Income, Pension(s)
Q4. How long have you been in Japan?
If you are on a Spouse Visa, then You are a Resident for Tax Purposes.
If you have been here for less than a total of 5 years (5 x 365 days) in the last 10 years, then You are a Non-Permanent Resident (NPR) for Tax Purposes.
If you have been here for more than a total of 5 years (5 x 365 days) in the last 10 years, then You are a Permanent Resident (PR) for Tax Purposes.

You should see a qualified Tax Advisor

You can start by reading the Annual INCOME TAX AND SPECIAL INCOME TAX FOR RECONSTRUCTION GUIDE
https://www.nta.go.jp/english/taxes/ind ... /index.htm

Currently, the 2020 Guide (last year's) is still posted, but the 2021 Guide should be posted in Jan/Feb 2022, just in time (I would argue too late for) 2021 Filing in March 2022.
https://www.nta.go.jp/english/taxes/ind ... x_2020.htm


A1. Your iDECO and NISA providers will supply End-of-Year reports with the numbers you need to file.
However, will your new employer provide a 401k? If so, this may affect the amount you can contribute to the iDECO.
You would provide these numbers to your employer and they would normally be handled under the Nenmatsu Chousei.

A2. In the Tokutei account, they will handle the tax through withholding, and the reporting for you. As you are only buying at this time, there is nothing to report.
When you sell, they will handle the tax through withholding, and the reporting for you. You Only need to file if your total income/gains other than your Employment Salary exceeds Y200,000. Then you have to file, but you get the credit for the Tax withheld.
Any gains outside the Tokutei account, or if you are PR, outside Japan (whether you remit the funds to Japan or not), that have not been subjected to Japanese Tax Withholding will have to be reported over Y0.

A3. If PR, any and all income/gain outside Japan (whether you remit the funds to Japan or not) is subject to Japanese Taxes, and you have to file.
If NPR, certain types of income/gain outside Japan (whether you remit the funds to Japan or not) may be subject to Japanese Taxes, and you have to file, but other Foreign Sourced Income (as defined by Cabinet) is not subject to Japanese Taxes unless you remit the funds to Japan, when the Income or Capital Gain portion becomes subject to Japanese Taxes, but not the whole amount.
Your Hypothetical govt. bond or international stock: Only any Interest, Dividends, and Capital Gain are taxable, not the amount you paid to acquire them or the expenses incurred to buy/sell/hold the securities.
Gifts: In any Tax year you can receive Gifts tax free up to a Total of Y1,100,000.
If PR, and If your total received gifts exceed this amount, you would have to file and pay Gift Taxes on the amount exceeding Y1,100,000.
If NPR, Only gifts received in Japan and gifts remitted to Japan are subject to Japanese taxes, and you would have to file and pay Gift Taxes on the amount exceeding Y1,100,000.
Inheritence is too complicated... there are other threads where Inheritence tax has been discussed, or you could start a new thread with any specific details...
You can claim Foreign Tax Credits against the Japanese Taxes for any taxes paid overseas on any overseas income.

You can also consider Furusato Nouzei as a Tax reduction strategy, if you have not already.