Hi,
As I understand permanent tax residents in Japan are required to pay taxes on their global income. I am currently a salaried worker in Japan where the employer takes care of withholding/paying resident and income taxes.
My question is about what category should the interest earned on deposits in home country bank accounts be classified in. Is this classified as Interest income? Or is it classified as miscellaneous income? This is assuming this money is NEVER brought into Japan and has been there since before coming to Japan (meaning this money was deposited prior to coming to Japan and stayed that way).
Reason for asking is although the interest income earned is <1000 yen and income tax return is not required in this case (<200,000 yen rule), the resident tax still needs to be paid. But the rates are different. So which category should we apply here when paying tax at the ward office counter?
by Appropriate_Net_3235