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Foreign remote work while on a student visa 2023/5/29 07:38
I am on the verge of relocating to Japan from the US on a one-year student visa, and I hope to continue working the remote job I have worked for years in the US during this time. This is a 100% online (full-time but technically freelance) job for an American company for which I am paid via direct deposit to an American bank account. After my student visa has run its course, I intend to seek out a work visa sponsor in Japan.
I am trying to determine how concerned I should be about the tax implications of doing this, but I have read some reassuring information suggesting that for the first year of living in Japan I will not have any tax obligations to Japan. But I am also concerned about the legality of secretly working what is technically a full-time foreign job while residing in Japan on a visa that expressly restricts full-time work.

Any advice would be appreciated.
by Bingus  

Re: Foreign remote work while on a student visa 2023/5/29 12:02
I mean, you just kind of answered your own question. If you're not allowed to work in Japan while being here on just a student visa, then how do you expect people to be on board with something that isn't considered legal to do in Japan?

It's completely up to you what you do in your private time, though in regards to taxes, you wouldn't be "working" in Japan for a company, so technically you're not paying taxes and would just be subjected to taxes in the US. I would just be very weary though of what you're doing, especially asking if something is ok when it's clearly written on the visa and permission that its' not.
by Tom (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/5/29 13:25
Why aren't you allowed to work on a student visa?

Just ask permission to work and give the explanation of what the work is to whomever you normally need to tell.
by H (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/5/29 14:15
There is a reason why it's called a STUDENT visa, and not a WORK visa. The purpose of a student visa is to study, not to work, lol. Why do you think there are different category of visas?
by Tom (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/5/31 15:35
Doesn't in Japan the condition/term "working in Japan" mean "working (having a contract) for business entity registered in Japan"? I.e no matter what kind of visa you have - as long as you do not do business related procedures with business entities registered in Japan - then all is fine at least for local authorities?

Otherwise it would be violation of japanese law should i read my work related e-mail or answer phone calls while having a vacation in Japan?

BR,
Lauri
by Lauriandres (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/5/31 22:21
I am not a lawyer, but as far as I can see, there are a few issues to think about.

Can you study full-time as a student while doing the full-time work? (simply as a matter of timec if you are going to be on gstudenth visa, you will have at least 4 hours a class each weekday, with additional assignments to do each day?)
Can you live in Japan without transferring the money you earn in the US to Japan at all, for the year?

If the answers to both questions are gyes,h I guess you gcouldh continue doing work while you study without any tax implications.
By the way, the rules on immigration were made when there was no such thing as remote working, and in that sense there are some gray areas.

Some part-time work is allowed for those in Japan on gstudenth visa – if you want to follow the procedures (mainly for people who pick up local part-time job), you ask for permission to engage in activities outside being a student, and report what you do on your part-time work – the maximum number of hours allowed for those on gstudenth status is 28 hours a week.


Tax matters:
Please note, though, that the meaning of gno tax obligation in Japan for the first yearh is that during the first year you live here, the Japanese tax authorities do not have any basis for imposing any tax on you, because the taxes are levied based on the previous yearfs income record in Japan, which you donft have. So when you get to the second calendar year of your residency in Japan, you will be liable for taxes based on previous yearfs income (= first year in Japan), which would be again zero gunlessh you work some other job with an employer in Japan..

So, if you can live completely on your savings, for example, during your year as a student, that you simply do not have to transfer ANY of the money from the US to Japan, you can honestly say you live on savings. And since you are not earning any money from a source in Japan, you should be OK here.

If you check the national tax guide, there you can see that youfll be considered a gnon-permanent tax residenth in Japan, who will be taxed only for the income that has a source in Japan, or the portion of the income youfve transferred from a foreign source.

by AK rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 00:24
I appreciate everyone's input.

To review what has been explained here, if I continue working this US-based remote job and use the earnings to cover the expenses associate with living in Japan (which I do intend to do; I have no other means of surviving while I am there), I will technically be obligated to report and pay taxes on the amount that I in some way transfer or withdraw for use in Japan the following year during tax season, is that correct?

As for the issue of having enough time for the work, while I did describe the job as "full time," it is actually an incredibly flexible "contracted non-employee" arrangement where my responsibilities simply amount to meeting deadlines. I can work whenever and (needless to say) wherever I care to, so I don't expect that finding the time for it will be an issue. I have become very efficient at this work over the years, and while I have never methodically calculated the average amount of time I actually spend working, I honestly believe that claiming that I do not exceed 28 hours of work per week would not even be an exaggeration.

The last issue I am hoping to have addressed is whether I will be in some way legally penalized for declaring that I worked a job that does not fall under the category of part-time work acceptable for student visa holders, and neither is the level of pay comparable to jobs in that category. The amount I earn from my remote job is fairly substantial, amounting to 8-8.5 million per year with the current exchange rate, although I of course only intend to transfer what I need to survive. If anyone has found themselves in a similar situation and could describe how it worked out for them, that would be helpful.
by Bingus rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 07:31
working the remote job I have worked for years in the US during this time. This is a 100% online (full-time but technically freelance) job for an American company for which I am paid via direct deposit to an American bank account.
That is not working in Japan, that is working in the US.
I am trying to determine how concerned I should be about the tax implications of doing this, but I have read some reassuring information suggesting that for the first year of living in Japan I will not have any tax obligations to Japan.
You should be very concerned. After 183 days you become tax resident in Japan and need to pay taxes on your worldwide income, including your freelance job.
You will probably also have issues with the US IRS.
by JapanCustomTours rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 10:23
you can be a resident of either Japan or USA.
if you are a self-employer, your story is simple. after you become a resident (as tax matter) in Japan, you have to file your income to tax office in Japan. you get money in US currency, instead of Japanese yen.

you mix up the two different matters of income tax and immigration. 28 hours are immigration matter.
by ken (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 11:28
If you are really curious if you can work in Japan while on a student visa, why not just ask immigration and see if they allow a status to work in Japan while on a student visa? Otherwise, if you're working here even remotely while on a student visa, I'm not sure what would happen if immigration found out about it.

Just please be weary of whatever you're considering and best to actually ask those who set the rules in place instead of just here on a forum to random people who don't necessarily know the law.
by Tom (guest) rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 15:06
@Ken you can be a resident of either Japan or USA.
if you are a self-employer, your story is simple. after you become a resident (as tax matter) in Japan, you have to file your income to tax office in Japan. you get money in US currency, instead of Japanese yen.

The distinction here is between being resident and tax resident - the two are different things. Plus, you can be tax resident in two countries at the same time and be liable for income tax in two countries at the same time. That is why it is important to know what rules apply and which ones you can get around.
In my case, I would normally be counted as being tax resident in my home country even though I have not been there for over three years. However, there is a specific rule that allows me to be tax resident in Japan only.
The OP needs to understand their liabilities to the US IRS and the Japan tax office based on tax residency, not just residency.
by JapanCustomTours rate this post as useful

Re: Foreign remote work while on a student visa 2023/6/5 15:58
what OP is arguing is the taxation and/or immigration of Japan. OP did not mention anything about US-side matters.
in Japan, I think that Japanese laws indicate that OP's duties may be different depending on a resident or not a resident (the government does not care about OP's residency, if OP is not a resident of Japan.) so that, I must say that OP is a resident of Japan or a non-resident of Japan.
they(immigration and tax office) use the same word, resident, but residency definitions of immigration and taxation are different. moreover, in some cases, the word definitions in governmental income taxation and residential city taxation may differ.

in any cases, OP spends some labor work in Japan and get a reward. so, if OP is "a resident of Japan in tax matter", OP needs to report OP's income to tax office in Japan. (be noted that I am saying only about income taxation.)
the special thing is that OP sells OP's labor to a foreign company and get money in a foreign currency.
by ken (guest) rate this post as useful

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