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Taxed after leaving Japan? 2021/2/20 21:32
"Any individual of non Japanese nationality having domicile or residence in Japan for an aggregate period of five years or more within the last ten years is classified as a permanent resident."

This is how the NTA defines a permanent resident for tax purposes, and permanent residents are taxed on worldwide income.

a) Does this classification depend on the TYPE of visa you have? That is, do only table 2 visas like spouse visa, permanent residency, etc. count toward this 5-year figure, or is time spent under a table 1 visa included as well?

b) Does this means you'll be taxed on your worldwide income for 5 years EVEN AFTER you leave Japan?
Or can you leave Japan, become tax resident some other place (by spending 183 days or more in this other country) and start paying tax ONLY in the new country?

They got rid of their ridiculous 'tail' clause on inheritance and gifts, so I assume such a tail clause on worldwide income does not exist, but I want to make sure.

The reason I am asking is that I have over a $1 million in Bitcoin and would like to move to a country with less ridiculous taxation laws.
by Emilio Chavez (guest)  

Re: Taxed after leaving Japan? 2021/2/21 06:43
a) Does this classification depend on the TYPE of visa you have?

No. And you can only be classified as permanent resident much earlier if they think you have intentions to live in Japan permanently.

That is, do only table 2 visas like spouse visa, permanent residency, etc. count toward this 5-year figure, or is time spent under a table 1 visa included as well?

Not sure what tables you are referring to. But visa type does not matter.

b) Does this means you'll be taxed on your worldwide income for 5 years EVEN AFTER you leave Japan?

In the year that you leave Japan you may still get charged. But not afterwards.

Or can you leave Japan, become tax resident some other place (by spending 183 days or more in this other country) and start paying tax ONLY in the new country?

Yes, that is how it usually works.
by Uji rate this post as useful

Re: Taxed after leaving Japan? 2021/2/21 07:46
b) Does this means you'll be taxed on your worldwide income for 5 years EVEN AFTER you leave Japan?
Or can you leave Japan, become tax resident some other place (by spending 183 days or more in this other country) and start paying tax ONLY in the new country?

It depends entirely on the country you move to, and the tax agreement they have with Japan. As you note, Japan is entitled to tax you on worldwide income as a tax resident. You new country will also tax you on either local or worldwide income also as a tax resident once you meet their criteria. And YES that does mean you can pay tax twice on the same income to two countries.
In my case, I would ordinarily be classified as tax resident in Japan and New Zealand (even if I haven't been there for over a year), but the NZ/Japan tax agreement has a "tie break" clause so I only pay taxes in Japan.
Avoiding being tax resident is not as simple as saying you have been out of Japan for more than 183 days.
by JapanCustomTours rate this post as useful

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