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Wage Slave wrote:Wibble wrote:As I understand it, with 3 years served in a Japanese marriage, you only need to have been in Japan for 1 year plus they want you to be on a 3 year residency status when you apply so that someone else has already done some paperwork on you and decided you're not risky.
That's correct. I didn't realise until my 3 years was up and I looked at it but yes. I could have applied two years earlier after 1 year in Japan with previous time served.
J.A.F.O wrote:Wage Slave wrote:Wibble wrote:As I understand it, with 3 years served in a Japanese marriage, you only need to have been in Japan for 1 year plus they want you to be on a 3 year residency status when you apply so that someone else has already done some paperwork on you and decided you're not risky.
That's correct. I didn't realise until my 3 years was up and I looked at it but yes. I could have applied two years earlier after 1 year in Japan with previous time served.
Shockingly my wife told me I could vote next year. I was like "How in the hell can I do that? I'm no citizen" She said she applied for me after I became a P.R. I asked "Don't I need to sign paperwork for that?" to which she replied that I did already. So basically because I trust her (She is trustworthy) whenever she hands me papers in kanji she just says "sign here" and I do.
I know I know Good little slave boy shufu. Sign your life away.
Salty wrote:She can`t have applied for Japanese Nationality on your behalf - the process doesn`t work that way. Maybe it is a different level of voting? Sex tonight baby? Or something like that....
chokonen888 wrote:103 votes...LOL
Are foreigners allowed to be mayor? If not, what are they worried about, a mayor that isn't racist and actually represents the interest of the majority of the voters...gasp!....getting elected?
kurogane wrote:Fair enough then. That's just a bad apple with what sounds like a touch of the JKK in him. It's a shame more significant lemurs don't rise up and kick a stink over that sort of uncivil service, assuming the friend was still FOB enough to have trouble doing so himself. My ex on a rampage over officialdumbness was a sight to see. Watching the ward office boys' faces fall when she whipped out her civil service ID was always worth a trip to the ward office.
Do mention to him that it sounds like he ran into a bad one, as he seems to have figured.
wagyl wrote:chokonen888 wrote:103 votes...LOL
Are foreigners allowed to be mayor? If not, what are they worried about, a mayor that isn't racist and actually represents the interest of the majority of the voters...gasp!....getting elected?
That is a difference of 103 votes between the winner and the one who came second place. Mind you, population in 2010 was 1657 so I don't know if you can really call that a close result.
chokonen888 wrote:wagyl wrote:chokonen888 wrote:103 votes...LOL
Are foreigners allowed to be mayor? If not, what are they worried about, a mayor that isn't racist and actually represents the interest of the majority of the voters...gasp!....getting elected?
That is a difference of 103 votes between the winner and the one who came second place. Mind you, population in 2010 was 1657 so I don't know if you can really call that a close result.
Ahhhh, gotcha. Still hilarious.
There are primarily Taiwanese, Korean, Vietnamese, Korean, etc. areas of So Cal and (wait for it) the politicians there tend to reflect the population. Haven't seen any of those areas try to secede from the state or try to change any federal agreements thus far. (though there are plenty of grumbling old racists that complain about not being able to read the signs)
wagyl wrote:There are so many questions with this: a purely hypothetical example.
A long term FG is one of a large family, the only one of them in Japan.
That FG's parent dies leaving a tidy sum in the estate. Potentially reaching the top marginal rate of 55%.
As SJ raised above, is the whole estate taxed, or just the share going to the FG?
I can see the situation where the remaining siblings buy the FG back to the home country, to avoid losing half of their shares to Japanese tax, if indeed the whole estate is taxed in this scheme.
I suppose the risk of that situation arising are slim, and Japan really doesn't see any loss of value to it if the FG makes the decision to leave Japan to avoid paying more in tax to the Japanese government than they are themselves receiving as a share of the estate.
That FG would have a few things to think about their future.
Thank you SJ for the thought provoking thread.
Wage Slave wrote:A quick update. I asked a Gyōsei shoshi I happen to know to take a careful look at this for me. The news is good. Only the portion of an estate due to a tax resident is relevant for Japanese tax AND the full allowance (including the bit for the number of beneficiaries) is applied to that figure. At present that is 30 million plus 6 million per beneficiary.
Further, any inheritance tax paid by the tax resident in their home country is available for relief against inheritance tax owed in Japan.
If the inheritance is below the allowance cited above, then there is no paperwork or need to report it to the NTA.
wagyl wrote:Source material has now disappeared, but post 14 here seems to have been based on something put out by Fukui Prefecture. It covers the situation of multiple heirs, only one of which is in Japan. The figures are pre-revision, but I would suppose the calculation method is the same.
A summary of the inheritance tax calculation method with a truly fucked family, some FG, some back home:
1. Only the FG is liable to pay.
2. Tax in Japan is calculated based on the total value of the taxable estate, after which a basic exemption is deducted to arrive at the net taxable amount. The net taxable amount apportioned to each heir (As you see below, FG or not) is then calculated according to a predetermined formula, upon which each heir then pays their individual inheritance tax liability. However, since all the heirs are jointly liable for each of the other's tax debts, the FG is the one who will be expected to pay all of it.
3. In calculating the number of statutory heirs to come up with the discount amount, only statutory heirs under Japanese law are considered: basically, unless none of these exist and we go to the next level, number of spouse and children.
4. Take the amount of the FG's bequest, and subtract the exemption (base rate + amount for each statutory heir)
5. Divide this sum up among the statutory heirs by the fixed proportions under Japanese law: half for the spouse, the other half evenly divided between children. Calculate the Inheritance Tax liability for each of the statutory heirs. This in effect increases the access to the lowest marginal rate.
6. Now for the kicker: the FG is the one who pays the total amount, for all statutory heirs. Admittedly, this amount will be less than if this was based on the whole estate, or possibly even if calculated without regard for the non FG heir's liabilities.
Those who have some concerns will probably be doing some number crunching over the next few days, calculating just how much they are prepared to pay to enjoy continuing to live in Japan.
At the nexus of life’s two certainties lies the somewhat less-than-joyous topic of inheritance tax. Recent reforms to Japan’s inheritance tax laws have significant implications for foreign residents, even those assigned to the country for relatively short stretches of time. The rules mean that someone passing away while residing in Japan could leave behind a large inheritance tax liability, even if the recipient and the assets are located overseas. Similarly, receiving an inheritance while assigned to the country can result in tax liability, regardless of the location of the decedent or assets.
The fact that the new Japanese inheritance tax rates scale as high as 55% has set off alarm bells among many foreign residents, though there are significant deductions and exemptions applicable. However, the levels of some exemptions have been cut severely. With liability beginning in many cases as soon as people step off the plane, understanding the rules is vital.
“One of the myths among foreigners in Japan is that inheritance tax only becomes an issue after you’ve been here five years: that’s unfortunately not true,” explains Hans-Peter Musahl, chairman of the EBC Tax Committee. “It’s imposed from the very first day a foreigner enters Japan with the intention to stay here for at least one year, and is thus considered to have a residence, or jusho.”
A jusho is defined as a person’s principle place of residence, based on employment, location of immediate family, duration of stay, location of assets and other factors.
“The Japanese inheritance tax [sozoku zei] is applied to the recipient, or heir, not the estate of the decedent, as is the case in some countries,” notes Musahl, who is also partner at the Tokyo offices of Ernst & Young Shinnihon Tax (E&Y).
The tax can still be payable by people who have never set foot in Japan, points out Marcus Wong, partner at PwC in Tokyo.
“Until April 2013, the law only looked at where the recipient’s jusho was. If you had a situation where a foreigner [in Japan] passed away and had adult children in the UK, and passed on UK assets, the recipient wouldn’t have been liable for Japanese inheritance tax,” says Wong. “The April 2013 law changed all that, so that they look at the jusho of the recipient and the decedent. That caused a lot of concern, especially among senior executives here, many of whom have adult children in the home country; that was kind of a game changer.”
Japanese inheritance tax rates begin at 10% for amounts up to ¥10 million, ending up at the top rate of 55% for those fortunate enough to be heir to a fortune of more than ¥600 million. It is worth noting that for foreign assets, the weaker yen means that currently those thresholds are reached by smaller amounts of dollars, pounds or euros.
“Fifty-five percent is the top rate and that does get the most attention, but depending on your circumstances, that is not always applicable. If it is passed to your spouse, it could be not taxable at all, or there’s a 50% spousal credit,” says Wong, who notes that liabilities such as mortgages are also deducted.
On the other hand, the exemptions on inheritance tax were cut significantly from January this year, points out Musahl.
“Families who inherited up to ¥100 million, maybe including a modest house outside the central Tokyo area, greatly benefited from the basic exemptions of ¥50 million, plus ¥10 million for each heir. For a wife and two children, that had added up to ¥80 million, which really helped many families, as it excluded, or significantly lowered, the tax exposure of most people,” says Musahl. “But the basic exemption has been reduced to the first ¥30 million, plus ¥6 million for each heir. So now it’s only ¥48 million for a surviving family of a spouse and two children.”
One tax planning measure available in some countries is giving money or assets to children over an extended period to avoid saddling them with a large inheritance tax bill on the death of their parents. Japan has plugged that loophole with its gift tax, which has an annual exemption of only ¥1.1 million.
“The top tax rate is also 55%, but you hit that at ¥30 million, whereas you don’t hit that until ¥600 million for inheritance tax,” says PwC’s Wong, who notes that, like the inheritance tax, the recipient is liable.
Investing in Japanese property is one way to reduce inheritance tax liability, with land values usually assessed conservatively enough to deliver a 20% to 30% benefit. In addition, inheritance tax exemptions of 80% on land of up to 200m2 with a primary home on it, and 50% for rental properties, are available. If a large amount of money is available to be put into such an arrangement, it can be further leveraged with a mortgage-secured bank loan that will allow for purchase of a more expensive property, delivering bigger exemptions.
“This is one of the reasons so many people invested in debt-financed properties during the bubble economy [late 1980s],” says Musahl.
A simpler and lower-risk measure that is being employed by expatriates is taking out life insurance, therefore, “hedging their family against the risk of being liable for Japanese inheritance tax during the time they are posted to Japan,” according to Musahl.
The assumption of some foreign residents has been that assets held overseas would be largely below the radar of Japanese tax authorities. While that may have been a somewhat risky strategy in the past, it looks set to become downright foolhardy with the automatic sharing of financial information between countries that is being phased in over the next few years. From this year’s tax returns in March, it also became an offence for Japanese nationals and foreigners who have lived here for five of the last 10 years not to declare overseas assets exceeding ¥50 million.
One bright note in this sea of gloom is that, although Japan doesn’t have many international estate tax treaties, assets are not subject to double taxation because Japan gives credit for tax paid in a foreign country.
“However, if the rate is higher in Japan, the difference will become due here,” adds Musahl.
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“One of the myths among foreigners in Japan is that inheritance tax only becomes an issue after you’ve been here five years: that’s unfortunately not true,” explains Hans-Peter Musahl, chairman of the EBC Tax Committee. “It’s imposed from the very first day a foreigner enters Japan with the intention to stay here for at least one year, and is thus considered to have a residence, or jusho.”
matsuki wrote:“One of the myths among foreigners in Japan is that inheritance tax only becomes an issue after you’ve been here five years: that’s unfortunately not true,” explains Hans-Peter Musahl, chairman of the EBC Tax Committee. “It’s imposed from the very first day a foreigner enters Japan with the intention to stay here for at least one year, and is thus considered to have a residence, or jusho.”
I thought it was if you lived here 5 of the past 10 years?
So if you move back to your mother country, with the intention the reside there, does the inheritance obligation disappear just as quickly as it appeared or are we dealing with moving goalposts?
kurogane wrote:They are really starting to nickel and dime it, aren't they?
matsuki wrote:That is le fucked...
Do people here ever "purchase" their jikka for before their parents croak ?
Russell wrote:In addition, inheritance tax exemptions of 80% on land of up to 200m2 with a primary home on it, and 50% for rental properties, are available.
wagyl wrote:paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.
Today is "Matsuki's brain is in his bum" day!*]
Wage Slave wrote:Or does he mean selling the family property at way below the market rate in order to avoid inheritance tax? I don't know about here, but I do know that is far to crude to work in the UK. In that case the difference between market value and the amount paid is treated as a gift from the parents to the the child/children for inheritance tax purposes. In respect of state help with nursing home fees and such it is treated as deliberate impoverishment and therefore disregarded. The kids can stump up the money or else make other arrangements for care.
One tax planning measure available in some countries is giving money or assets to children over an extended period to avoid saddling them with a large inheritance tax bill on the death of their parents. Japan has plugged that loophole with its gift tax, which has an annual exemption of only ¥1.1 million.
matsuki wrote:Sorry Tommy, even though you've never had a passport, your dad spent his last year in Japan so you're going to have to pay Japan the inheritance tax it's due on you're 5th generation family home in Texas.
matsuki wrote:wagyl wrote:paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.
Today is "Matsuki's brain is in his bum" day!*]
No...but cash can be spent and it's not traceable.
wagyl wrote:matsuki wrote:wagyl wrote:paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.
Today is "Matsuki's brain is in his bum" day!*]
No...but cash can be spent and it's not traceable.
I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.
I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.
Samurai_Jerk wrote:wagyl wrote:matsuki wrote:wagyl wrote:paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.
Today is "Matsuki's brain is in his bum" day!*]
No...but cash can be spent and it's not traceable.
I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.
I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.
You mean that if you took 50 million yen out of your bank account and gave it to your parents in exchange for singing their house over to you, the tax office would be able to trace that!? I find that hard to believe.
Salty wrote:Samurai_Jerk wrote:wagyl wrote:matsuki wrote:wagyl wrote:paying 100% of cash to your parents does not make that asset of 100% cash disappear from the estate.
Today is "Matsuki's brain is in his bum" day!*]
No...but cash can be spent and it's not traceable.
I suppose you could do a KLF, otherwise it becomes a different asset of the same value, which is also part of the estate. I suppose your brain is in your bum all day long today.
I did hear an anecdote about a lawyer who said that you can only hide off-the-books funds by eating and drinking them or putting them into your garden. He had a really nice garden. That probably put the value of his house up, though.
You mean that if you took 50 million yen out of your bank account and gave it to your parents in exchange for singing their house over to you, the tax office would be able to trace that!? I find that hard to believe.
I don`t find that hard to believe.... When the title changes both you and they have an associated bank transaction. If you had cash and thus no bank transactions, they would still be looking for proof of the value transferred, and not just taking your word that the value was X, and that they must have simply spent it.
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