Status of Forces Agreement (SOFA) is a residency status designed specifically for U.S. military, civilians, contractors and their dependents (excluding Japanese citizens). They pay no taxes to Japan other than consumption taxes.
SOFA status members also have access to a U.S. Bank on the installation that dispenses both JPY and USD (for use on the installation). As part of the SOFA the bank is restricted to SOFA status personnel only and can be used to purchase items on the Japanese economy.
When making a transition from SOFA status to a spousal visa which must be done within 60 or 90 days of leaving the position what happens to any money in your bank account on base especially if you have other sources of income you have deposited into that bank?
I realize a Japanese bank account can’t be opened until gaining the spousal visa and get a My Number Card which may prevent a bank transfer until afterwards but most if not all of the money in the bank was earned prior to the visa change. In addition you can make JPY withdrawals at any time prior to the change in visa status.
Would there be any tax consequences in this scenario?
by BriefExisting3952
