Dear visitor, if you know the answer to this question, please post it. Thank you!

Spouse visa first time renewal (income, tax) 2020/1/5 18:20

I am in the middle of getting my spouse visa renewed for the first time.

My situation is that I live in Japan but are employed by a company abroad (working remotely at home), and thus get my entire income from abroad too.

When we registered the marriage or applied for the first year we only included my wife's income as I'm not taxable to Japan ( which makes me sort of a dependent of her). This is something we plan to change from this year on, as I will pay tax to Japan from now on.

On the application form there's a whole section on method of support to pay for expenses while in Japan so I would like to ask what anyone in a similar situation put down?

Should I include all the details about my foreign employer, annual income etc or shall I just put down the income and details from my wife instead? or both?

By including it, I fear I will have to pay tax to Japan for 2019. Or is this completely unrelated to that?

Thanks in advance.
by Susukino (guest)  

Re: Spouse visa first time renewal (income, tax) 2020/1/6 09:50
Please look at the table in the first answer I gave on this thread:

Assuming you have been here just for one year, you will be classified as gnon-permanent residentg for tax purposes. (This has nothing to do with the immigration PR status.) Do you get the pay for your work paid into your account in Japan, or does it go into your account overseas and only a portion sent to Japan? That would determine your taxable income for Japan.
by AK rate this post as useful

Re: Spouse visa first time renewal (income, tax) 2020/1/6 17:45
You would normally be considered to be "tax resident" in Japan as distinct from "resident". Unless you have good reason (expert tax advice) to not declare world-wide income, then you need to pay your taxes locally on all your income - that is usual. Some countries have tax treaties (and tie-breaks).
What you need to ensure is the avoidance of double taxation. When I was working in Australia that was an issue for me as my effective tax rate would have been over 75%.
As an example, because I own assets in New Zealand, but live in Japan, I would normally be required to pay NZ taxes at (roughly) 30% AND Japan taxes and social security (around another 30%). Fortunately, to avoid a 60% effective tax rate there is a "tie-break" rule, so I only pay taxes locally.
by JapanCustomTours rate this post as useful

reply to this thread