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Taxation: Working from Japan for Aus company 2017/3/4 16:33
Hi!

I was wondering if anyone has an understanding of taxation (and avoidance of double taxation) in my quite specific case. I'll try to be detailed:

I have New Zealand and German citizenship and have been living in Australia for the last 3½ years on my New Zealand passport, so at present I am tax resident in Australia. My wife is Japanese and we are aiming to move to Japan mid June, most probably for 2+ years. My Australian employer agreed that I can work from Japan, but the company is located in Australia; there's no Japanese office. It's like remotely working from home, except that home will be in Japan. No doubt this will have some taxation implications, at the latest when I have lived in Japan long enough to become tax resident there.

I am quite unsure about how to receive my salary. Can I still receive it into my Australian bank account and then transfer the salary or part of it to my Japanese bank account? How would this scenario affect my taxation? My understanding is that (as there is a convention between Japan and Australia for the avoidance of double taxation) as long as I am tax resident in Australia I pay my income tax there, but after I become tax resident in Japan I pay it in Japan, regardless if it has been paid into my Australian or Japanese bank account. Is this correct?

Also, once I am tax resident of Japan, does my employer still have to withhold the tax on my salary? Or if it is withheld, do I need to apply to get it refunded? Or is there a better/more straightforward way altogether?

(As a side question, I'm also curious if my super would still get deducted if I am no longer tax resident of Australia. I'd prefer to keep getting super contributions.)

If anyone knows about this or is even in a similar situation your response would be much appreciated.

(There's a related message on this forum, but the circumstances are quite different: http://www.japan-guide.com/forum/quereadisplay.html?0+122102)
by nugob  

Re: Taxation: Working from Japan for Aus company 2017/3/5 09:56
If you have assets in Australia the "tie-break" rules would probably make you Aussie tax resident rather than Japan tax resident. If your usual place of abode is Japan, you can get them to count you as Japan tax resident.

But, this is a detailed question so don't rely on an internet forum for your answer. I had a similar situation, and the details are just that, detailed.
by JapanCustomTours rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/5 10:14
This is a complex question which you will need to clarify with AUS IRD . However I can say in general how it was for us. We were NZ residents and we moved to Japan to open an office for a NZ company. My husband was paid from the NZ office into his bank account inclusive of PAYE, and this total amount was directly moved into our Japanese bank account. NZ took non-resident withholding tax I think 15% on the balance but as it moved quickly it didn't amount to much. We paid no tax in Japan, and from what I understand our AUS friends also working there for international companies off shore didn't pay tax until the 5th year. Often their companies moved them onto Singapore, or after the 5th year you must register with Japanese taxation dept to pay taxes if you are going to be living their longer.
We also lived in AUS so I understand about super. When we left the country we had to wind up our super and received it in a lump sum. However you may be able to make manual payments if there is a chance you are going back to AUS to live. Check with their IRD. I remember them asking us was there any chance we were returning to live in AUS as they would hold it over.
by LoveJapan (guest) rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/5 17:11
LoveJapan - I think you have unpaid tax obligations in NZ based on what you wrote.
by JapanCustomTours rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/6 07:27
Thank you for your replies. I'll get in touch with the Australian Taxation Office and possibly involve a tax consultant as this isn't a straightforward case. It's good to hear about others' experiences with this and it's a good starting point for me. When I have clarity about my case I'll post it here but it may take a while.

Regarding NZ, no, I don't have tax obligations there. I clarified that at an earlier stage with IRD. But thanks for making me aware of this possibility.
by nugob rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/6 11:57
I am working for Indian company in Japan from home. Indian company pays the payment to my Japan account from India.
I am doing the tax filing during 16th Feb to 15th Mar every year.
If the company pay in your japan account, it is taxable. You have to file the tax in Japan for those income. If you are dependent on your wife's income and your yearly income is less than 130man, No need to pay tax. Let me know if this information is helpful to you or not.


by Sun (guest) rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/6 16:05
well,
if it is a salary from the company and less than 1030000 yen, it is true.
if OP is a self-employer, the above information is incorrect.
by ken (guest) rate this post as useful

Re: Taxation: Working from Japan for Aus company 2017/3/7 11:04
@JapanCustomTours,

The NZ IRD says that a resident is someone working/living in the country for more than 183 days in a year, and thus pays tax to NZ. As we were living in Japan at that time we didn't meet that criteria. This of course is of no relevance to the OP. We had no outstanding tax bill.
by LoveJapan (guest) rate this post as useful

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