I've searched the forums but did not find answers to this particular question concerning the little talked about exit tax.
As I have read more about the exit tax and possible significant implications, I am wondering if there are ways to legally avoid the tax. I am an American and currently in Japan on a spouse visa but have an application in for permanent residency. I think before acquiring the PR would be the last chance I'd be able to make any changes to being required to pay the exit tax (if I were to leave Japan).
My understanding is that the exit tax is applicable for those who have PR, who are on spouse visas, etc., but are not applicable for those who are on some employment visas.
My question is this: if I were to stay on a spouse visa for the long-term (rather than take the PR), would I be able to change to an employment visa to become exempt from the exit tax?
For example, if I am on a spouse visa until the year 2035, and I have $1 million USD in capital gains in USA investment accounts (meaning I would be required to pay the exit tax upon departure from Japan), would I be able to change to an employment visa, like a high skilled professional visa, and work for a certain period of time to eventually become exempt from paying the exit tax?
Thank you for any input you have on this potentially significant tax.
by MiniRetiFI