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Tax Liability after leaving Japan 2014/8/22 05:37
I have been in Japan for 12 years. I leave for 4 weeks every summer and 2 weeks every winter. I am considering liquidating some of my US stock holdings to buy a house back in the United States. My question is how long I have to be out of Japan until the Japanese tax agency doesn't pursue me for taxes on the stock sale. It's one thing to pay 15% to the IRS, but quite another if I have $200,000 tacked onto my JP income which would put me into a 40% tax bracket. So, when do I have to leave Japan, and how long after that before I can make the sale and buy the house? Thanks in advance.

Sam
by samhfoley  

Re: Tax Liability after leaving Japan 2014/8/22 11:19
After you cancel your residency "visa" Japanese taxes will not apply.
Also if you register with city hall as a non-resident, but if you are just going for a holiday, then you probably can't do that.

Note that any taxes you pay in US can be offset against Japanese tax liability as there is a double tax agreement in place.

If you have foreign assets greater than 50,000,000 yen, you should have been declaring them every year since 2012. In this case they will realise if you liquidate any of them. Obviously any income you generate from your assets should also have been declared in Japan.

You should probably consult a tax lawyer in Japan as this sort of capital gain might not be regarded as direct income.
by Mr Shippy (guest) rate this post as useful

Re: Tax Liability after leaving Japan 2014/8/23 02:55
So if I pay the 15% (stocks held longer than 1 year) capital gains on my USA tax return, I won't be liable for capital gains in Japan? No double tax situation?
by samhfoley rate this post as useful

Re: Tax Liability after leaving Japan 2014/8/23 15:58
After you cancel your residency "visa" Japanese taxes will not apply.
if you move to US from Japan, you are still liable for tax declaration about the income which you get inside of Japan.

about stock capital gain, 申告分離課税 may be apply to in Japan, national tax is 15.315% and local tax is 5%.

if you have an US citizenship, I think you are liable for tax declaration in US.
http://taxman.typepad.jp/weblog/2013/04/2012%E5%B9%B4%E5%88%86%E7%94%B...
by ken (guest) rate this post as useful

Re: Tax Liability after leaving Japan 2014/8/23 22:49
It's not that you won't be liable, it's just that taxes you've already paid will be taken into account or offset against what you have to pay in Japan. The US take is normally higher than the Japanese, so you may not have anything to pay. There's probably some clever way round this, but you should talk to a profession as there is a reasonable amount od money at stake, and in recent year Japan has been getting more proactive in going after non-Japanese that don't declare properly. Many City halls offer free confidential advice service for things like tax, so it might be worth asking.
by Mr Shippy (guest) rate this post as useful

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