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Remittance Tax 2021/5/18 21:36
Hi, my wife and kid will be moving back to Japan next year as my kid is attending Primary school there. I am planning to send money to her monthly for their expenses. Will I get taxed on this?

Also my plan is to move to Japan with them in the near future once my work here is settled, and I plan to sell my house here and use the money in Japan as savings / use for expenses while I get work there. Will I get taxed on this too? or should I just leave the money in my home country?

Warmest,
Alwin
by AlwinLim  

Re: Remittance Tax 2021/5/19 17:10
I'm pretty sure it depends on the policy of your home country and the place your residency is registered to.

For example, in Japan, you won't have to pay taxes just because you sent money to your own spouse. Meanwhile, if a resident in Japan sells a house, whether the house is in Japan or overseas, the person may have to pay taxes depending on how much profit the person gained. Here are details (in Japanese language).
https://www.nta.go.jp/taxes/shiraberu/taxanswer/joto/3560.htm
by Uco rate this post as useful

Re: Remittance Tax 2021/5/20 10:28
Thank You so much for taking time to reply me =)

I was also thinking the same, till my wife came telling me that her country has remittance tax. Then i googled and it seems that if you are a japanese resident (I assume having the spouse visa and having stayed in Japan for a couple of years), you will be taxed for income coming in for overseas too. So I was wondering if it applies too if I send money to my wife, she being a Japanese national, the tax bureau might tax her thinking its her foreign source income?

So about the property, i guess i will just have to sell it before i become a Japanese Resident? Will i be able to keep the proceeds in my home country and remit money as and when I need it? e.g monthly / yearly?

by AlwinLim rate this post as useful

Re: Remittance Tax 2021/5/20 11:31
Thank you for your feedback. Well, Google tells me that if a "foreign resident in Japan" receive money from family overseas, the resident will not be taxed. But I'm not sure about Japanese residents. Either way, all you have to do is to ask a Japanese Tax Office. They are very helpful, and if they say it's okay, you can say that "the tax office said it's okay."

For your reference, here is the website that mentions about the foreign resident policy.
https://www.tactnet.com/news/2021/No.860.html
by Uco rate this post as useful

Re: Remittance Tax 2021/5/20 13:45
"you won't have to pay taxes just because you sent money to your own spouse.h
that is partly correct and partly incorrect.
after money transfer, when the money owner is still the sender, it is not taxable.
if you send money to someone (including the spouse) for the purpose of "giving", it is taxable.
but, if you send money to your spouse for the purpose of "her expense" for everyday's living, it is not taxable, because you send money to her for the family. the money owner is still you.
by ken (guest) rate this post as useful

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