Hello, I am currently in Japan under a student visa with a duration of one year, even though my course is less than a year long. Since I will be staying in Japan for less than a year and my “base of life” is not in Japan, I should be considered a non-resident for tax purposes for both 2023 and 2024. I’m also self-employed doing some freelance work and pay taxes at the non-resident flat rate of 20.42% as business income.
I enjoy living in Japan and am currently thinking of maybe staying longer. I have some questions about the tax implications of transitioning from non-resident to non-permanent resident, either within the same fiscal year or in different fiscal years:
1. If I stay in Japan without leaving and switch to a new visa, it will extends my stay to more than a year and I”ll become a resident for tax purposes. Does this change apply to all income generated from January 1, 2024? Do I need to make any modifications to my 2023 tax filings, or will I still be considered a non-resident until 2024?
2. If I leave Japan and return on January 1, 2025, will this affect my non-resident status for 2023 and 2024? Will I instantly become a resident because my total stay in Japan would exceed one year, or is there no accumulation of residency status over time when leaving japan “for good” but still coming back?
I am trying to understand the tax implications in both scenarios.
by sushis_