I have searched r/JapanFinance community and gather that the prevailing thought can be summed up with:
Big computer gaijin
<snipped out info on insurance model>
“With respect to US IRA accounts, the only professional commentary I have ever seen published (see previous threads on the topic) has stated that IRA accounts qualify for treatment in accordance with the "insurance model" (i.e., taxation at the time of distribution). I also believe that such treatment is strongly implied by the US Treasury's commentary on the Japan-US tax treaty. But without a definitive statement from the NTA, it's hard to say much more.”
This was two years ago. Has anything new come out?
A month before tax day, and before I had thought to search Reddit, I had spoken with a person at the tax office to ask specifically about how my IRA would be taxed. She said it would be treated as an ordinary brokerage account, tax on gains, no tax on distribution.
Unfortunately, though I argued vociferously at the tax office, the people there insisted that I should pay tax on both gains within my IRA (interest and dividends) in 2023 *and* the distribution I took in 2023. They told me that the person I spoke with earlier gave me incorrect information.
Without any definitive statement on the proper tax model, I have scant hope of succeeding with a claim for a refund. Am I too pessimistic on this? The amount is significant for me, but not enough to be of interest to a law firm.
by tdc09