Hi, this is my first post here, and I'd like to thank RetireJapan and this community for this really helpful forum. I learned a lot already.
I have a few inheritance/gift-related questions. As I understand it, a table 2 visa holder (spouse or PR holder) is immediately fully liable to pay taxes on any inheritance or gift from a foreign donor (regardless of whether that donor has any ties to Japan or not).
I read about the revised 2-year tail rule. So if I understand this correctly, any foreigner who had jusho (place of residence) in Japan for 10+ years but who then left Japan (gave up jusho) will be liable for inheritance and gift tax on inheritances/gifts outside of Japan after having left Japan, but only should that foreigner return to Japan and reestablish jusho within 2 years.
So as an example, if I can expect that an inheritance will become due in the nearer future and I leave Japan,
1. as long as I do not hold jusho on the day of death of the person who I inherit from and
2. as long as I do not return to Japan for residence purposes within 2 years,
there is no inheritance tax to declare or pay in Japan, and the same is true for gift tax.
Is this correct?
Does the 10-year within a 15-year period threshold apply to table 1 visas (work visa, etc.) and table 2 (spouse visa and PR holders) equally or is there a difference?
I believe this is the case:
1. If I had jusho for 10+ years (on any category visa) I should not return within 2 years.
2. However, if I had jusho for less than 10 years (even on a PR/spouse visa) I could potentially return within a few months (ensuring that it is a proper break and not an extended holiday).
I'm not sure if my assumption is correct (as a PR and former spouse visa holder).
Well, realistically, even if possible, returning within 2 years may not be a great option, for example, if the inheritance is an overseas property that gets sold and capital gains tax is due. Moving country within tax years when a capital gains tax applies sounds like tax accounting hell. It may be easier to let the dust settle before coming back.
I have some follow-up questions, but this is plenty to start with. Thanks for reading.