I've been involved in a long-running legal case in the UK.
It looks like I may be awarded compensation.
This money will go into my NatWest bank account.
I plan to transfer it to Japan using WISE.
I have no idea if this money will be taxed in the UK before I receive it (probably), but how about Japan?
If the money has already been taxed in the UK, do I have to declare it to the Japanese tax authorities as well, and pay tax on it again?
What is the rate of tax?
I am a seishain at a Japanese company (my only job), earning just under 5m yen per year.
The amount of compensation is around 3m yen.
Thanks.
Tax on money awarded as compensation
- Roger Van Zant
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Tax on money awarded as compensation
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Re: Tax on money awarded as compensation
I was curious about this so I googled it but it seems like any compensatory damages 損害賠償 for distress (even the payment for divorce 慰謝料) is considered non-taxable in Japan. Obviously your personal situation might be different but you might be in the clear https://www.nta.go.jp/taxes/shiraberu/t ... ん%E3%80%82
Even if it were taxable, the tax treaty between the UK and Japan would allow you to claim a deduction on the tax already paid to the UK.
Even if it were taxable, the tax treaty between the UK and Japan would allow you to claim a deduction on the tax already paid to the UK.
- Roger Van Zant
- Veteran
- Posts: 627
- Joined: Tue Sep 01, 2020 7:33 am
- Location: Kyushu
Re: Tax on money awarded as compensation
Good to know.zeroshiki wrote: ↑Tue Jan 30, 2024 4:00 am I was curious about this so I googled it but it seems like any compensatory damages 損害賠償 for distress (even the payment for divorce 慰謝料) is considered non-taxable in Japan. Obviously your personal situation might be different but you might be in the clear https://www.nta.go.jp/taxes/shiraberu/t ... ん%E3%80%82
Even if it were taxable, the tax treaty between the UK and Japan would allow you to claim a deduction on the tax already paid to the UK.
Thank you.
Investments:
Company DB scheme ✓
iDeCo (Monex) eMaxis Slim All Country ✓
新NISA (SBI) eMaxis Slim All Country ✓
Japanese pension (kosei nenkin) ✓
UK pension (Class 2 payer) ✓
Company DB scheme ✓
iDeCo (Monex) eMaxis Slim All Country ✓
新NISA (SBI) eMaxis Slim All Country ✓
Japanese pension (kosei nenkin) ✓
UK pension (Class 2 payer) ✓