Hey All,
Been lurking for about 2 weeks and have seen a fair amount of good/bad posts (many 0 upvote posts here) and thought it was finally a good time to ask for some guidance and input.
Some key info:
* I grew up in Japan until 6th grade in Japanese school (English was my second language that I learned after moving to US), and my family decided to move to the US where I completed my B.S. in California
* I was a dual citizen until 18, where it made sense to claim US citizenship since I’ve been here since
* My mother’s side still has a home in Japan (Nagano), but it is a stretch from where I would ideally want to live in (Kansai – Osaka/Kyoto)
* I’m fluent enough in Japanese where locals asked me how I was so ぺらぺら so I took that as a good sign (yes I know, they could just be polite and my Japanese is slightly 訛ってる but I’m determined to get back to full fluency) that I can strike up a relatively mid level conversation even though my technical/business vocabulary will require studying if I want to do business in Japan
**Backstory & Reasoning**
I recently visited Japan for the first time in 6 years and had a conversation with my partner about potentially figuring out a hybrid living/work schedule by splitting our time in the US and Japan. I also thought it could be a nice “full-circle” moment to help take care of our house in Nagano where my grandparents + family spent every summer until we moved to US (no one currently lives there even though a family friend helps with some maintenance — it’s mostly just a hub for stopping by whenever anyone visits Japan).
**Employment**
I run an e-commerce business where I design and sell own clothing, and also work as a freelance designer/wholesaler whenever I get leads from people I want to work with. I have been strategically shifting my manufacturing process to have less involvement so I can be fully remote in the US without much issue in my current state. I have 9 years of experience in ecommerce/design/apparel, and have held a Director position for 2 years at my previous employer before leaving to start my own company. We currently live in LA so the biggest financial commitment in the US is rent, which comes out to about \~$3.5K with all utilities.
My partner works as a designer for a US based company, so I’m curious if she’s able to continue her work at her current employer as long as they’re okay with the international relocation. Not sure how taxes work here either.
**Main Question**
Are there any resources where I can learn about taxes (domestic, or international), or is it possible to get clients in Japan and/or figure out a different part-time job while I’m there? I’m a bit unclear on the tax implications of US vs Japan for the work I am doing there vs let’s say my ecommerce site sells things in the US, and I take on another gig in Japan for the reason of paying for things there where I’ll be taxes domestically. There there specific type of visas we should be looking into for this kind of arrangement?
Additionally, I’m open to doing some random work while being displaced in Japan but I’m curious if anyone has some input on this topic.
Thank you for reading all the way here and for your help!
4 comments
This is a copy of your post for archive/search purposes.
—
**Returning to Japan After 20 Years – Guidance / Questions (Hybrid Lifestyle)**
Hey All,
Been lurking for about 2 weeks and have seen a fair amount of good/bad posts (many 0 upvote posts here) and thought it was finally a good time to ask for some guidance and input.
Some key info:
* I grew up in Japan until 6th grade in Japanese school (English was my second language that I learned after moving to US), and my family decided to move to the US where I completed my B.S. in California
* I was a dual citizen until 18, where it made sense to claim US citizenship since I’ve been here since
* My mother’s side still has a home in Japan (Nagano), but it is a stretch from where I would ideally want to live in (Kansai – Osaka/Kyoto)
* I’m fluent enough in Japanese where locals asked me how I was so ぺらぺら so I took that as a good sign (yes I know, they could just be polite and my Japanese is slightly 訛ってる but I’m determined to get back to full fluency) that I can strike up a relatively mid level conversation even though my technical/business vocabulary will require studying if I want to do business in Japan
**Backstory & Reasoning**
I recently visited Japan for the first time in 6 years and had a conversation with my partner about potentially figuring out a hybrid living/work schedule by splitting our time in the US and Japan. I also thought it could be a nice “full-circle” moment to help take care of our house in Nagano where my grandparents + family spent every summer until we moved to US (no one currently lives there even though a family friend helps with some maintenance — it’s mostly just a hub for stopping by whenever anyone visits Japan).
**Employment**
I run an e-commerce business where I design and sell own clothing, and also work as a freelance designer/wholesaler whenever I get leads from people I want to work with. I have been strategically shifting my manufacturing process to have less involvement so I can be fully remote in the US without much issue in my current state. I have 9 years of experience in ecommerce/design/apparel, and have held a Director position for 2 years at my previous employer before leaving to start my own company. We currently live in LA so the biggest financial commitment in the US is rent, which comes out to about ~$3.5K with all utilities.
My partner works as a designer for a US based company, so I’m curious if she’s able to continue her work at her current employer as long as they’re okay with the international relocation. Not sure how taxes work here either.
**Main Question**
Are there any resources where I can learn about taxes (domestic, or international), or is it possible to get clients in Japan and/or figure out a different part-time job while I’m there? I’m a bit unclear on the tax implications of US vs Japan for the work I am doing there vs let’s say my ecommerce site sells things in the US, and I take on another gig in Japan for the reason of paying for things there where I’ll be taxes domestically. There there specific type of visas we should be looking into for this kind of arrangement?
Additionally, I’m open to doing some random work while being displaced in Japan but I’m curious if anyone has some input on this topic.
Thank you for reading all the way here and for your help!
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When it comes to taxes and running a business, the /r/JapanFinance sub might be more helpful.
As far as the viability of your move goes, it’s not clear if you are still a Japanese citizen. Did you make a declaration to keep your Japanese citizenship by your 22nd bday (or within 2 years of being naturalized as a US citizen)? If not, then you’re probably going to need a visa. AFAIK, there are a fair amount restrictions for the Business Manager / Startup Visas… like you need a dedicated office (home doesn’t count), a certain amount of capital, a multi-year business plan, etc.
Also, you mention a “partner”, but not if you’re legally married. If so, then she would be on a dependent visa with limited ability to work. If not, then she needs her own work visa. Given that she works for a US company, they won’t be able to issue one unless they have presence in Japan or are willing to hire a PEO or such.
This post appears to primarily be about tax matters. As far as I know, I’m one of the few (possibly only?) active posters across the many different Japan subreddits that is a former/current Japanese tax professional with actual experience working with expats on individual tax implications. And after about 10 years on here I have never responded to a single a tax post. While tax rules and regulations are out there for anyone to read, and subs like /r/japanfinance are filled with people who kindly summarize such resources for others, as far as I know no one on that sub has any relevant professional experience, and nothing you gain from that sub or this sub will ever substitute the practical experience/knowledge a tax professional will have for your specific circumstances. In fact, some of the stuff I’ve seen written there is wildly incorrect, which is why I don’t think I’ve visited it in years.
You asked for resources, so I will say, any of the Big4 accounting firms have tons of free resources on Japanese taxes available. Here is one from KPMG for example:
https://kpmg.com/jp/en/home/insights/2022/11/taxation-in-japan-202211.html
Grant Thornton, which is ironically not a B4, also has a plethora of tax alerts/bulletins on individual matters. It’s simply up to you to research, identify the relevant points, and then follow up on those relevant points.
Of course, the reason 99% of people don’t do this is because those “relevant points” are filled with technical jargon and mountains of connecting points that are not simple for anyone to just DIY. Hence why professional firms exist and why you pay people to summarize your tax implications in memorandum format. Since you have a host of tax issues going on, I would strongly advise you to reach out to at least a mid-tier firm’s international personal advisory group and get yourself a tax healthcheck for around USD1-2k. It will make your business ventures significantly easier, especially if working with overseas clients/employment. This post is meant for anyone who has a tax question that goes beyond simple, individual matters, such as the OP.
Sorry, I’m not much help on the tax side, but if you are listed on your family’s koseki and can get a physical copy of it, you can apply for a visa as a spouse/Child of Japanese National.