Hello. I am little ignorant on laws and rules in Japan, so I would like to ask some questions.
I currently am working in japan with work visa(Engineer/Specialist in humanities/International services).
I got a good opportunity to start a business against US company in the US. However I would still want to stay in Japan with current job.
I know setting up a business is not a scope of my visa. But if I do tax in the US, is this possible?(funds and incomes will be stored in the US bank, and no transaction will be done through Japanese bank) Business will have no office both in Japan and US.
Thank you!!!
3 comments
llc or sole proprietorship? C-corp or S-Corp?
These are my uneducated guesses:
– You may operate a foreign business
– You might not be able to hire yourself as an employee by your company, given your status of residence
– You would need to pay income tax for your share of that business, since you would be working in (from) Japan
You are taxed on all income you earn globally as long as you are a resident of Japan. Hiding it is visa fraud and will get you swiftly kicked out, fined and probably more.
As an American, FACTA complicates things and requires all your banks, yes all of them even here, to share your holdings with the USA IRS. You may be able to hide it for a little while but eventually, one or both nations will catch up with you. When that does happen, it’s over.
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I wonder if the mods allow discussions on how to commit tax fraud?