My wife and I are both PRs and just became permanent tax residents as well. (I got the immigration PR through points, hence that came first.) My wife has negligible income (just interest on overseas savings bank account) but has assets overseas. She has never filed a tax return in Japan (because zero Japanese income). Is she supposed to make some kind of declaration of global assets despite not being a taxpayer? I have taken professional advice and the answer I got is no need but that suggests an exploitable loophole (wrt inheritance law, for instance) and so I wonder if anyone else has any knowledge about this. Thank you.
by juntokyo
1 comment
>despite not being a tax payer
But she is a tax payer. Just a tax payer with zero, or very little “employment income”
Her interest on overseas savings are still *taxable events* defined as “foreign sourced income”.
There are tax breaks for this following the NPR process (read the wiki about NPR), but now she’s no longer a NPR, it means ALL taxable events are now taxable to Japan (which includes foreign sourced income) regardless if remitted to Japan or not. Of course that’s assuming she earns an aggregated total of >¥480,000 per year from all income sources she may have. If the aggregated total of all her income sources is <¥480,000 then she won’t need to file a tax return.
And yea OAR (overseas asset reporting) applies once you lose your NPR status. So if the aggregated total of all her domiciled overseas assets exceeds ¥50 million, then she needs to file OAR every year applicable, by mid-March (i believe the 15th?) of the following year