Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Jamo
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Re: Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Post by Jamo »

bonnie21 wrote: Sun Oct 29, 2017 3:27 am So that means you could sell Dec 31st, and send Jan 1st the next day assuming instant transactions. Seems a little too easy to get around, but again I'm not sure.
Well, this is for non-residents, i.e. people who have not had a domicile or have had not had a residence continuously for one year or more in Japan (https://www.nta.go.jp/taxanswer/english/12006.htm). I think it would be unfair to make such a person pay tax on money sent to Japan if, say, they are just on holiday etc.

I'm a little confused about the the difference between a "permanent resident" (supposedly after 5 years) and a non-resident (as described above).
bonnie21
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Re: Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Post by bonnie21 »

Jamo wrote: Fri Oct 27, 2017 1:22 pm According to the document even non-residents owe tax on transactions, if remitted to Japan. I'm assuming this means remitted in the same year as the transaction?
Sorry, I originally thought your question about selling one year and sending the next was in reference to non-permanent residents. According to the chart, non-residents do not pay taxes on anything abroad "in principle".

Did you mean NPR instead of NR?
Jamo wrote: Sun Oct 29, 2017 6:49 am
Well, this is for non-residents, i.e. people who have not had a domicile or have had not had a residence continuously for one year or more in Japan (https://www.nta.go.jp/taxanswer/english/12006.htm). I think it would be unfair to make such a person pay tax on money sent to Japan if, say, they are just on holiday etc.

I'm a little confused about the the difference between a "permanent resident" (supposedly after 5 years) and a non-resident (as described above).
Right, non-residents, such as travelers and people on business trips, do not pay anything - nor do they file a tax return.

I am confused about what you are confused about though. The difference between a PR and an NR seems to be quite clear in terms of residence status and tax status. Maybe I'm not catching your question though.
bonnie21
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Re: Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Post by bonnie21 »

bonnie21 wrote: Thu Oct 26, 2017 7:50 am My understanding is the same as RetireJapan, BUT if you bring the money to Japan then it is taxable regardless of being PR or not.
Just to clarify, when I said "regardless of being PR or not", I meant "regardless of being PR or NPR". I assumed that on a site called "RetireJapan" no one would be here for short term tax advice. Sorry for any confusion on that. I think the chart I referenced is pretty clear on all this though.
Jamo
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Re: Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Post by Jamo »

bonnie21 wrote: Sun Oct 29, 2017 2:23 pm I am confused about what you are confused about though. The difference between a PR and an NR seems to be quite clear in terms of residence status and tax status. Maybe I'm not catching your question though.
Sorry, I think I meant non-permanent resident and non-resident. I've since cleared that up :)

Even though you transferred the money from a personal savings account, it's the original source of the money that the tax agency would be interested in. Unless you had the same amount available in personal savings before selling the shares, I'd say it would be a little risky to call it savings. I doubt the tax agency has free access to overseas bank accounts for verification, but for amounts large enough, it's not a stretch to believe they may seek clarification with foreign tax agencies.

Does your country have a tax treaty with Japan? It may help you avoid double taxation, or at least reduce the rate.

In my situation, I came to Japan on a working holiday visa in 2014. I'm assuming that made me a NPR when I arrived, as in my case I moved into a share house and had an address pretty much straight away. So at the moment I'm still an NPR, until April 2019. In Australia I pay tax on fund distributions that are reinvested. I don't need to pay tax in Japan because the money is not remitted to Japan. When I become a PR I will have to pay tax on those distributions, whether remitted to Japan or not.
bonnie21
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Re: Inquiry letter regarding foreign remittance (海外送金に関するお尋ね)

Post by bonnie21 »

Thanks for clearing up your previous question, Jamo.
Jamo wrote: Mon Oct 30, 2017 12:09 am for amounts large enough, it's not a stretch to believe they may seek clarification with foreign tax agencies.
Right, this is basically the crux of the situation, although I would think they would ask me for more proof before going that far.

Everything you said is in line with the information I have gathered so far though.

Anyway, I have made my decision and will report back when I know the outcome.

Thanks for everyone's input.
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