Japan - Non permanent resident tax loophole?

[Freetrade]

Does anyone have any knowledge about Japan taxation?

If someone were to move to Japan they are classed as a Non-permanent Resident for 5 years after which they become a normal resident.
From what I have read , as a non-permanent Resident "foreign sourced income" is not taxed as long as it is not remitted to Japan in the same calendar year it was earned.

https://suga-taxfirm.com/en/blogpost/japanese-tax-non-permanent-resident/

Has anyone taken advantage of this ruling?

Would it be possible for a full time crypto trader (100% on chain, no exchanges) to structure things in a way that their income would be classed as "foreign sourced" while living in Japan?
eg. receiving a dividend (in crypto)

Or would all income be classed as "Japan sourced" because all trading is done from Japan?

 

[JackAlabama]

Freetrade said:
Does anyone have any knowledge about Japan taxation?

If someone were to move to Japan they are classed as a Non-permanent Resident for 5 years after which they become a normal resident.
From what I have read , as a non-permanent Resident "foreign sourced income" is not taxed as long as it is not remitted to Japan in the same calendar year it was earned.

View attachment 8096
https://suga-taxfirm.com/en/blogpost/japanese-tax-non-permanent-resident/

Has anyone taken advantage of this ruling?

Would it be possible for a full time crypto trader (100% on chain, no exchanges) to structure things in a way that their income would be classed as "foreign sourced" while living in Japan?
eg. receiving a dividend (in crypto)

Or would all income be classed as "Japan sourced" because all trading is done from Japan?
Click to expand...

what visa would you try to get? Imo the visa issue is more complex and will influence your tax.

 

[JackAlabama]

Freetrade said:
Spouse
Click to expand...

But idk really. Maybe that gives some kind of extra-tie to the country which will pull you into some kind of tax PR-like status.

 

[intlman]

Freetrade said:
Or would all income be classed as "Japan sourced" because all trading is done from Japan?
Click to expand...

Having looked into Japanese taxation (I was going to move to Japan a while back, but decided against it), I'm quite sure that this would be classified as "Japan sourced".

 

[brianK]

What is the personal tax rate one have to pay relocating to Japan ?

Toggle signature
Winners never quit and quitters never win....

 

[Freetrade]

brianK said:
What is the personal tax rate one have to pay relocating to Japan ?
Click to expand...

Divide by 150 to get the USD value:

 

[daniels27]

The permanent residency in Japan is rather hard to get, even for long-term residents. I would not worry too much about getting it too quick. For the taxes, 45% is only the beginning, please read it to the end:
https://taxsummaries.pwc.com/japan/individual/taxes-on-personal-income
We are actually talking about 55.945%. But please note that you can get something back in form of rural agricultural products on a yearly base (it is worth less than a few thousand Yen).

For the exemptions etc. In my (and @jafo's experience), Japan is rather relaxed when you are there and behave normally (i.e. either study or at least make some income. The are equally relaxed for temporary situations, non-residents often get paid even by national institutions in cash for their work performed there (that's what means "taxable in principle").

If you have a wife and want to live there permanently, you may get into troubles at some point. Especially if you need to transfer money into Japan (apart from paying all with a foreign credit card) or later on become a permanent resident and start declaring things.