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Taxes in Japan 2015/5/28 07:04
So I am half Japanese half American, but an American Citizen living in Texas. I am looking to get a Children Visa to move to Japan for about 2-3 years. My Mom is a Japanese Citizen and most of my family lives in Tokyo.

I currently work for a Global IT Consulting firm and work 100% virtually.

1) As I am being paid from the US, will I still be subjected to Pay Japanese Income Taxes. I believe since I am a non-resident and income is from US, I do not have to pay Japanese income taxes. correct?

2) I read the total cost of residency taxes are approx. $20% of my yearly income. Will this still apply to me? I understand I have to pay a tax to live in Japan but wanted to get an understading of total tax costs.

Thanks.
by Jgome21  

Re: Taxes in Japan 2015/5/28 12:27
I don't know the answers to your question, but I'll just point out that contrary to what you seem to think, you will be considered a resident of Japan is you come on a "Child of Japanese National" visa.
by Firas rate this post as useful

Re: Taxes in Japan 2015/5/28 13:23
If you are living in Japan on a mid/long term residency status as you intend, then you will be a Japanese resident and so subject to taxes.

For your short stay you will be a non-permanent tax resident. In this case, you need to declare any income you earn abroad that you transfer into Japan; this is subject to Japanese income tax. However, you of course will still have to pay US taxes on your income as usual, so in your tax return you can show the amount of US taxes paid which will offset the Japanese liability and so preventing double income taxes.

You will also need to make mandatory pension contributions and National health insurance payments (some pension contributions can be reclaimed when you leave Japan). Resident taxes are also payable, but a year in arrears, this means that you won't have to pay any city/prefectural tax in your first tax year, but for your 2nd tax year an on you will - it's about 10% of your taxable income depending on where you live. Also this is payable for a whole year if you are resident on Jan 1st even if you leave midway through a year.

If you are working remotely from home though, there are probably lots of things (like part of your rents, utilities etc.) that you can claim as business expenses and reduce your taxable income. Using a tax accountant in Japan would prob save you more money than the accountant cost.
by Lady Kodaira rate this post as useful

Re: Taxes in Japan 2015/5/29 01:09
Thanks for the useful info.
by Jgome21 rate this post as useful

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