Hey everyone! Shizuokan here. Been in japan for 5 years. I’m on a family/spouse visa. Since living here my mom and dad have been sending me about 250usd via PayPal a week for spending money. I use my USA paypal account with her card on it and send it to my JP paypal with my bank account connected to it and I just send a payment from the USA to JP paypal. Do I need to report this to the tax people? Does anyone know the limit of what can be sent? Is the way I’m doing it wrong?
8 comments
Try r/JapanFinance
250 per week is definitely an amount of money you need to file taxes for
The threshold for gift tax (贈与税) is 1.1 million yen per annum. At today’s rates that’s a little over USD $8,000 or $153.85 a week.
So what you’re receiving would go over the amount. You might want to discuss the amounts you receive with your parents.
So essentially(as it looks externally) you are transferring money to yourself and you have been doing this for 5 years right. I think your options are:
-just keep on doing business are normal
-report it as gift or possibly income, if that works better, from this point on.
-also report you have been doing this for 5 years already but pretty sure that will eff you over something fierce.
It’s more on your home countries end, how much gift tax is it in America? In the uk it’s 3000gbp. I send money all the time to my JP account from the UK but it’s my own money so none of it is taxed when it gets to Japan.
damn…ya parents still send ya money?? lucky tho. I’d take that if my parents offered…but lately it’s the opposite lol
Money gifted to family members for living expenses is non-taxable and does not need to be declared.
I don’t think it’s good to make assumptions but as long as your parents have paid tax on their income, that money has already been taxed and you shouldn’t need to be pay tax on it. It’s a gift from a family member no?
Japan is definitely one of those places where it’s often better off not to ask and you’re probably better off, I’d be doing as much “passive” research as possible.