Hi there, this is yet another post about extra income I apologize but I couldn’t find an identical situation to mine in previous threads. I don’t want to mess up as I’m hoping to apply for PR in 3 years.
I moved to Japan in January 2024 with an HSP visa, I was a French resident last year (not a US person). I assume I will be considered non-resident for tax purposes in Japan in 2024 as I would have lived here less than a year.
I have been selling digital content (software) on Gumroad for several years, revenue was previously declared as sole proprietor in France. Revenue is above 200,000 yen and won’t be remitted to Japan.
Immigration lawyer and a phone call to the Immigration Services confirmed that I can continue to sell it with my HSP visa (as long as my Japanese employment is my main activity and source of revenue). But they told me to check with a tax advisor about how it would have to be declared. I would like to be able to continue developing the software in my spare time.
\- Should it be declared as Business Income? Wouldn’t Business Income require me to register as Sole Proprietor in Japan?
Also, I have liquidated my company in France in November 2023. Dissolution is taking time and I will receive dividends in 2024. These will be taxed in France and the money won’t be remitted to Japan.
\- Do I need to report it in Japan?
I will have a consultation with a tax advisor but wanted to test the waters here first as I’ve seen some very knowledgeable and helpful redditors. Thanks!
by heygeorgie666