Remote Work for Foreign Company Taxation 183 Day Rule – Working Holiday Visa Extension

Hey All,

I know there is numerous threads regarding remote work and WHV in Japan which are helpful advice. Also I contacted the ATO prior to leaving Australia and they essentially confirmed the info first thread:

[https://www.reddit.com/r/JapanFinance/comments/v6kgbg/working\_holiday\_remote\_working\_for\_overseas/](https://www.reddit.com/r/JapanFinance/comments/v6kgbg/working_holiday_remote_working_for_overseas/)

[https://www.reddit.com/r/JapanFinance/comments/15031r2/remote\_work\_while\_working\_on\_whv/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/JapanFinance/comments/15031r2/remote_work_while_working_on_whv/?utm_source=share&utm_medium=web2x&context=3)

Currently I’m working remotely part time (28 hours) for Australian company whilst in Japan, and the rest of the time I’m travelling around and holidaying. I arrived late September, travelled for one month (holidaying no work) and then resumed part time remote work in late October. My WHV is set to run out end of March, and I would like to extend again and just travel for month in April (stop working end of March) and then return to Australia end of April. So I understand if I leave within the 183 days I remain a tax resident of Australia, and am exempt from submitting Article 172 declaration, so if I leave end of March when my Visa expires then it’s simple.

However, if I wanted to stay until end of April, is there a way to avoid submitting Article 172 and having to claim for tax offset in Australia? For example, could I leave March then return on a tourist Visa for one month or does this still count as exceeding the 183 days stipulated in Article 14 of the Convention Between Japan and Australia for Avoidance of Double Taxation and Prevention of Fiscal Evasion with Respect to Taxes on Income (ie. visa status is irrelevant it’s just how long you remain in the country):

*the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any 12 month period commencing or ending in the taxable year of that other Contracting State*

My gut feeling on this is that it’s not allowed and obviously I don’t want to break the law/want to pay my taxes correctly in both countries, so I’m more than happy to submit this declaration and extending on the WHV; but I have never done this type of declaration before and am not sure about the process works.

In Japan, do I just submit a lump sump payment of 20.42% for those \~5 months I was working remotely as I’m leaving the country through immigration, or is there a specific time/place where I need to do the tax declaration?

Then in Australia I submit the offset form? Has anyone had experience with this, is it a difficult process?

Thanks heaps in advance

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by No-Afternoon3905

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