Elect to remain a Non-Permanent Resident?

If married to a Japanese national and living in Japan on a Spouse Visa, can one elect to remain a Non-Permanent Resident (NPR) instead of becoming a Permanent Resident (PR)? It appears that the benefit of being a PR is accompanied by much more taxes due to the GOJ. Is remaining an NPR an option, or must a Non-Resident (NR) on a 5-year Spouse Visa become a PR after a year?

The NPR vs PR is in relation to taxation differences between the two.

It appears that if working remotely from Japan that the tax advantage of paying taxes on money brought into Japan vs global income is a benefit in that situation. If I understand the Foreign Earned Income Exclusion (FEIE) in the US correctly along with experiences posted in this blog would this be a correct statement?:

As a hypothetical NPR, the GOJ taxes income physically earned inside Japan or brought into Japan. The FEIE (2022) provides an exclusion of $112K of earnings while remotely working in Japan. This person earns $100K working at a US company remotely from Japan, but only brings in $75K for all living expenses. The FEIE, negates US taxes that are below the $112K, and the taxes owed to Japan are on the $75K that was brought into/spent in Japan.

If that is correct, the difference between the FEIE cap and the amount brought into Japan are non-taxed in Japan as an NPR; amounts exceeding the FEIE are taxed by the US.

Conversely, the entire amount earned globally would be subject to taxes by the GOJ while residing in Japan as a PR.

Is this correct?

I donft know how the taxation laws work between Japan and another country, but my understanding of the PR and non-PR in terms of taxation in Japan is simply taxation authorityfs classification depending on your residency period in Japan, and nothing you can choose to be or not to be (unless you move out of Japan).

The NR status from what I understand is just your first year, after that your status will be automatically be NPR. All data I've seen states that one needs to apply for PR status, it's not granted after a certain number of years. There are minimum years of living in Japan required before one may apply for PR.

A person on a Spouse Visa, needs at least 1 year, most other people are required to have at least 10 years of residence in Japan before applying. The whole premise of my inquiry was if it is permitted to remain an NPR for better tax consideration when working remotely. Anyone living in this situation?

And just to be sure, this PR and non-PR distinction for taxation purposes has nothing to do with your resident status in terms of immigration.

As AK mentioned, PR for immigration and PR for tax are two separate entity.

Permanent Resident Status (immigration) you have to apply for it, if you met the requirements.

For taxes purpose, there are (automatically assigned based on your residency)

a. Non-resident
who has lived in Japan for less than one year

b.Resident
i.Non-permanent
lived in Japan for less than 5 of the past 10 years.


ii.Permanent
lived in Japan for more than 5 of the past 10 years.

https://lifeguide.tokyo/index.php/tokyo-living-guide/japan-tax-residen...
https://www.nta.go.jp/english/taxes/individual/pdf/a-4.pdf

Ron, somehow your comment appeared after mine and the other posterfs.

Please note that the PR (immigration) status you apply for, and the tax authorityfs categories if NR, NPR, and PR are completely different things.

I appreciate everyone's input, thanks!