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Taxes on remote work, Japanese spouse 2022/6/19 11:50
Considering moving from the US to Japan to work remotely (IT work) and need to determine how much taxes will be before we start serious planning. The company I work for will let me work remotely from anywhere, but since it is my choice they are not taking on any of the fact-finding on taxes, insurance, etc. Another person in the company is working remotely from Australia. The company has no presence there either, I was told he was changed from employee to contractor to simplify things; I don't know his specifics. Anyway, I will need to do all the groundwork and provide all the answers to the company.

My Situation:
A. I am a US Citizen
B. My wife is a Japanese citizen, so I plan on getting a Spousal Visa (our two kids have dual citizenship)
C. The company I work for has no presence in Japan
D. My work would be 100% remote via the internet on assets in the US
E. All payroll deposits will be made to a US bank
F. We are planning on staying in Japan for about 5 years

My research tells me that I'd have no work restrictions on a Spousal Visa. However, it is not clear to me what that means as far as taxation.

If 100% of my income were to be earned via remote work in the US from Japan
Questions:
1. Would the US company I work for need to file anything different?
2. Is my income considered earned in the US or Japan?
3. Would I pay taxes to both the US and Japan? What are the rates?
4. Does having a Spousal Visa mean one is a resident?

Is there a good resource to anyone can recommend?

Thanks in Advance!
by Ron (guest)  

Re: Taxes on remote work, Japanese spouse 2022/6/19 17:01
This is the national tax authorityfs classification of what income will be taxable and what not. (Note that the terms gresidenth gpermanent resident,h etc., are not the same as the immigration authorityfs definitions, but this one is for taxation purposes.

https://www.nta.go.jp/english/taxes/individual/pdf/a-4.pdf

According to this, it looks like the first year you will have not any income tax obligations. (gNon-residenth)

From the second year, you will have to declare and pay income taxes on the portion of your salary that you send over to Japan (for your living expenses, etc.). (gNon-permanent resident,h gforeign source incomeh column)

Your resident tax will be determined based on your taxable income.

I have no idea about US - Japan tax treaty, so you might need to consult a tax accountant separately on how this is handled. Your employer will file the salary they pay to you as gpaying into an US accounth as if you were in the US, so I guess theyfd do the same as theyfve always done (and I assume they would not want to do anything extra). Best wishes.
by AK rate this post as useful

Re: Taxes on remote work, Japanese spouse 2022/6/22 03:14
Ron, I am going through the same thing! If you figure it out, could you please reach back to me! I would really appreciate it!

-Nelson
by Nelson Lopez (guest) rate this post as useful

Re: Taxes on remote work, Japanese spouse 2022/10/10 07:04
Has anybody made progress on this? I'm facing the same problem now and would love to find out what conclusion everybody reached.
by KyokutanJP rate this post as useful

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