Income from deposits

I am an Australian citizen who lives in Japan (permanent resident) and once a year I bring some money to Japan from my savings account. I am already paying the 10% non-resident tax. The total amount of my savings is less than 50 million yen and I heard I don't need to declare it on my tax return here. But do I need to declare the amount remitted to my account here? If I was to be taxed how much is the tax? Any help would be appreciated.

Reply to
nick
Loading thread data ...

This group is basically for United States taxes. I think you are going to have to look elsewhere for help with Japanese taxes.

Reply to
Bob Sandler

The following comes from my notes taken in a seminar on taxation in Japan for foreigners. The seminar touched upon taxation of income for residents vs non-residents. I checked the current set of rules at the National Tax Agency and did not see anything of significance that changed from I took the seminar years ago.

If you are a permanent resident of Japan for more than 5 years or you are domiciled in Japan, you are taxed on your worldwide income regardless of where that income is sourced. Assuming that is the case, any interest earned on your foreign bank accounts is taxable by Japan. Japan, just like the US, does have a reporting requirement for foreign assets unless in aggregate they are less than ¥50 million. This reporting requirement is separate from the income tax. So, money you may wire transfer from Australia to Japan is not taxable income.

Your reference to paying a 10% non-resident tax confuses me as I am not aware of any income tax that specifically applies to non-residents. Non-residents of Japan are only taxed on income sourced in Japan. As an aside, non-permanent residents (more than one year but less than five years of residence and not domiciled in Japan) are taxed on income sourced in Japan and income sourced outside of Japan ONLY if that income is paid in Japan or remitted to Japan.

Japan does have prefecture and local taxes that just so happen, add up to 10%.

Reply to
Alan

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.