Just found out there's an "Assets and Liabilities Reporting" (ALR) requirement to report worldwide assets if you have too much: https://www.pwc.com/gx/en/hr-management-services/newsletters/global-watch/assets/pwc-new-japanese-assets-liabilities-reporting-requirement.pdf
But requirement seems to imply I only have to do this if I made 20 mil yen in income? Is this only talking about Japanese income? My Japanese income's very low, while my overseas income from capitals gains is higher than this. Been in Japan < 5 years so haven't reached permanent resident status yet.
Do I still have to report if I never made > 20 mil yen in Japanese income? My "worldwide assets" are above the 300mil threshold where you have to report, but do not want to report if I don't need to.
by floxik
3 comments
> I only have to do this if I made 20 mil yen in income? Is this only talking about Japanese income?
It’s referring to the total net income shown on your Japanese income tax return. See [this NTA page](https://www.nta.go.jp/taxes/shiraberu/taxanswer/hotei/7457.htm) for a more detailed explanation.
> my overseas income from capitals gains is higher than this. Been in Japan < 5 years so haven’t reached permanent resident status yet.
Presumably you are referring to capital gains derived from the sale of shares you purchased before moving to Japan, which non-permanent tax residents are allowed to treat as if it were “foreign-source”.
> Do I still have to report if I never made > 20 mil yen in Japanese income?
Even if you don’t meet the income test, you still need to submit an assets/liabilities report if you have more than 1 billion yen worth of assets.
Note that Overseas Assets Reporting (OAR) demands reporting overseas assets of ¥50M or more, once you reach 5 years in Japan (permanent tax resident) you have to report it anyway.
With >¥300M you probably exceed an annual net income of ¥20M and thus already have to report according to ALR (as anyone would with that income who exceeds certain assets subject to exit tax of ¥100M) as non-permanent tax resident.
>>My “worldwide assets” are above the 300mil threshold where you have to report, but do not want to report if I don’t need to.
You have to report if your worldwide assets are over 50million yen.
For non-reporting, problems may occur if you transfer to Japan.