Clarifying tax rules on stock grants as American citizen domiciled in Japan

The city tax people are telling me something different than what the internet says. Situation is – arrived March 30, 2022 in Japan. Stock is part of compensation and is deposited into a USA account. No taxes are withheld in either country. I am an American citizen. I am not a Japanese citizen or affiliated with a Japanese citizen in any way, spouse, etc. I am domiciled in Japan. The proceeds from the stock vest was not remitted/transferred to Japan.

City tax people are saying

* After 1 year (after March 30, 2023) that stock is subjected to tax because no tax was withheld in either country – whether or not it was remitted to Japan. They agree I am a resident with non-permanent resident tax status.

The internet says

* I am not subjected to tax in Japan on worldwide income until after 5 years (after 5 years you become tax permanent resident) unless that money was remitted to Japan

The tax people are even showing me a flowchart that agrees with me (at least I think it does but I can't read Japanese 🙂 ).

What's the truth?

https://preview.redd.it/7o8xavugowmd1.jpg?width=6120&format=pjpg&auto=webp&s=05654f27bb085e61e02de876ed4d46f11f115512

by fireinsaigon

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