Taxes?

[Great Thing]

I've spent the past month scouring the Internet for the answer to my question, but I haven't found anything specific. Hopefully someone here can provide assistance.

I'll attempt to renew my Cultural Activities visa this year. My income in the past year has exclusively come from my military veterans' benefits, and that's what I use to pay for rent+utilities in my apartment. I haven't worked or received any other income, and I'm not allowed to. Under these circumstances, will I be expected to pay any taxes in Japan?

Many thanks in advance.

[waruta]

Have you tried asking the Tax Office nearby?

[IparryU]

I've spent the past month scouring the Internet for the answer to my question, but I haven't found anything specific. Hopefully someone here can provide assistance.

I'll attempt to renew my Cultural Activities visa this year. My income in the past year has exclusively come from my military veterans' benefits, and that's what I use to pay for rent+utilities in my apartment. I haven't worked or received any other income, and I'm not allowed to. Under these circumstances, will I be expected to pay any taxes in Japan?

Many thanks in advance.

pm me and i can refer you to my tax advisor. he is army vet. and does US/Japan taxes. he works with people on and off base, japanese and FG.

he is the main guy and has a team of FG/Japanese advisers under him, so he gets the job done correct.

after the Japanese adviser i went through, i had to go back and do 3 years of filing (refiled PROPERLY) to get my refunds and NHI premium reduced.

[Taro Toporific]

... my Cultural Activities visa this year. My income in the past year has exclusively come from my military veterans' benefits, and that's what I use to pay for rent+utilities in my apartment. I haven't worked or received any other income, and I'm not allowed to. Under these circumstances, will I be expected to pay any taxes in Japan?

As an FG on a "Cultural Activities visa" you have a Non-Permanent Resident visa status. Non-permanent residents pay taxes on all income (except on income from abroad that does not get sent to Japan).

The average benefits income for younger veterans is $856/m ([s]710,000yen/m[/s] 70,453yen/m) or $10,272/year (845,442yen/year).
In Japan, if your income is less than 1.95 million yen per year, you do not need to file/pay Japanese Income Tax.

But hey, this is Japan---Y.M.M.V.:nihonjin:

[Mike Oxlong]

The average benefits income for younger veterans is $856/m (710,000yen/m).
In Japan, if your income is less than 1.95 million yen per year, you do not need to file/pay Japanese Income Tax.

I'd like to exchange some of my US dollar holdings at the Bank of Taro!

[Fullback]

Math or typing don't seem to be his strong suit . . .

[wuchan]

As an FG on a "Cultural Activities visa" you have a Non-Permanent Resident visa status. Non-permanent residents pay taxes on all income (except on income from abroad that does not get sent to Japan).

The average benefits income for younger veterans is $856/m (710,000yen/m).
In Japan, if your income is less than 1.95 million yen per year, you do not need to file/pay Japanese Income Tax.

But hey, this is Japan---Y.M.M.V.:nihonjin:

if you make less than the 1.95m a year the tax office will tell you "nah, you don't need to file". What they won't tell you is that if you do you will get almost every thing back provided you had regular deductions.

[Taro Toporific]

if you make less than the 1.95m a year the tax office will tell you "nah, you don't need to file". What they won't tell you is that if you do you will get almost every thing back provided you had regular deductions.

The point is Mr. "Great Thing" never had to pay any Japanese taxes and never had any Japan taxes deducted from his income, therefore if he made less than the 1.95m a year he could just ignore the whole Japanese tax issue, sheesh.

[wuchan]

The point is Mr. "Great Thing" never had to pay any Japanese taxes and never had any Japan taxes deducted from his income, therefore if he made less than the 1.95m a year he could just ignore the whole Japanese tax issue, sheesh.

There are tax grants, probably none that apply to the OP, that will get you money even if you didn't have money deducted from your pay.

[dimwit]

The point is Mr. "Great Thing" never had to pay any Japanese taxes and never had any Japan taxes deducted from his income, therefore if he made less than the 1.95m a year he could just ignore the whole Japanese tax issue, sheesh.

I'm sorry that is simply not true. At an income of 1.9 million, you have a taxable income of about 1.1 million depending on the source of income. Taking away your basic exemption you are down to about 700,000 yen taxed at a rate of 5%, you end up paying 35,000 yen a year. At roughly 1 million yen you are in the clear as your personal exemption more than covers your taxable income.

[waruta]

I'm sorry that is simply not true. At an income of 1.9 million, you have a taxable income of about 1.1 million depending on the source of income. Taking away your basic exemption you are down to about 700,000 yen taxed at a rate of 5%, you end up paying 35,000 yen a year. At roughly 1 million yen you are in the clear as your personal exemption more than covers your taxable income.

Ya, I thought the limit was somewhere around 1.3 million. Then no taxes, and you get the gov health insurance at the lowest possible rate. However, trying to live in Yokohama or Tokyo on 1.3 is going to be a little rough...

[Great Thing]

Thanks again for the input! Immigration says that the income I've received isn't taxable... so I shouldn't expect any tax-related complications from them when I try to renew my visa.

IParryU, I'll send a PM your way.

[maraboutslim]

I'm confused. If the source of income is a pension from another government, is it still taxed in japan if the amount is over \1.9mil?

It's likely I'll retire to Japan and my pension will be a lot higher than that and I just assumed that since it is income from the USA, and taxed there, the tax treaty would make me exempt from paying in Japan. What gives?

[wuchan]

I'm confused. If the source of income is a pension from another government, is it still taxed in japan if the amount is over \1.9mil?

It's likely I'll retire to Japan and my pension will be a lot higher than that and I just assumed that since it is income from the USA, and taxed there, the tax treaty would make me exempt from paying in Japan. What gives?

S O F A

[maraboutslim]

Yeah, well, if that applied to me, I'd have said so. My question remains if anyone knows the rules about non-military pensions and taxes, I'd appreciate it.

[FG Lurker]

I don't think pensions are inherently tax-free, but I'm no tax attorney so...

Assuming they are not tax free then you will be subject to Japanese income tax on them after you have been here for (I think) 4 years. After 4 years the tax office considers you a permanent resident and you are required to pay income tax on your worldwide income. (This is one reason why many foreign execs get rotated out of Japan at the 4 year mark.)

You shouldn't face double taxation though as the tax you pay in Japan should be credited towards your US tax bill. You should really talk to someone who has exact experience with this...

[maraboutslim]

Sounds good. Thanks.

[Pearse]

I came across this web site for foreigners made by Nagoya International Center that has a good, simple explanation of how to file Japanese income taxes.
http://www.nic-nagoya.or.jp/en/e/archives/352

I'm filing my Japanese taxes on my own this year and I think I will be able to complete them (the deadline is April 15th) but if anyone knows of any websites that explain Japanese income tax filing easily, please tell me.

[dimwit]

I came across this web site for foreigners made by Nagoya International Center that has a good, simple explanation of how to file Japanese income taxes.
http://www.nic-nagoya.or.jp/en/e/archives/352

I'm filing my Japanese taxes on my own this year and I think I will be able to complete them (the deadline is April 15th) but if anyone knows of any websites that explain Japanese income tax filing easily, please tell me.

NOOOO. The filing date is MARCH 15th. I'd get a move on it if I were you.

The Tax office was a English guide which is surprisingly coherent. But if your return is in anyway complicated I would head down to the tax office post haste. They usually have a few people who can speak some English. Good Luck.

[CrankyBastard]

I came across this web site for foreigners made by Nagoya International Center that has a good, simple explanation of how to file Japanese income taxes.
http://www.nic-nagoya.or.jp/en/e/archives/352

I'm filing my Japanese taxes on my own this year and I think I will be able to complete them (the deadline is April 15th) but if anyone knows of any websites that explain Japanese income tax filing easily, please tell me.

Not sure if your deadline is right there, Pearse.

Better check http://www.nta.go.jp/tetsuzuki/shinkoku/shotoku/tebiki2010/pdf/43.pdf

[CrankyBastard]

dim, beat me to it.

On the subject of filing this year, I didn't see a separate form to fill in regarding absences from Japan during the tax year.
I wonder if they've done away with it.

[Pearse]

NOOOO. The filing date is MARCH 15th. I'd get a move on it if I were you.

The Tax office was a English guide which is surprisingly coherent. But if your return is in anyway complicated I would head down to the tax office post haste. They usually have a few people who can speak some English. Good Luck.

Thanks, Dim and Cranky. And, sorry, I meant to write March 15th. Maybe I had the US date in mind. Yes, I am working the Japanese one now. Going to head to the local tax office tomorrow after visiting the local courthouse to pay for a parking ticket.

[waruta]

Go early! They have a line stretching out the door even before they officially open in the morning...

[Pearse]

Go early! They have a line stretching out the door even before they officially open in the morning...

I went today and the the line did stretch out the door. The tax people help you file your taxes on a computer. It wasn't as hard as I was afraid it would be. And the good news for me is that I'm getting a refund.

On the subject of filing this year, I didn't see a separate form to fill in regarding absences from Japan during the tax year.
I wonder if they've done away with it.

I had to fill out a gaijin form and list my nationality, visa status, etc. and it had a space to fill in any absences from Japan. But as far as I know, there wasn't a separate form just for that.

Thanks everyone.

[Fullback]

It's on the back of the form with your prison (gaijin card) number and visa type, entry date, etc.

One of the great vagaries is that some local offices say that you must include a copy of your gaijin card and passport. Nowhere does it say that in any of the instructions, though.

[wuchan]

It's on the back of the form with your prison (gaijin card) number and visa type, entry date, etc.

One of the great vagaries is that some local offices say that you must include a copy of your gaijin card and passport. Nowhere does it say that in any of the instructions, though.

for my personal taxes I only filed a "form A" with my work documents and pension slip. At no point did anyone ask for GC/passport. Same as last year. The farm taxes were done on one form with numbers from my head. Personal tax return = 100% back. Farm = free money back from farm subsidies. No eyebrows raised.

if I could figure out how to get the city tax back I would be truly happy.

[CrankyBastard]

They haven't sent me the 'gaijin form' this time.
They'll probably ask me to fill one out at the office when I eventually go there at the last minute.

[IparryU]

if I could figure out how to get the city tax back I would be truly happy.

any overseas property or losses in Japanese investments can be written off as loss to decrease your "income" and you would have less money taxed on. that would "get back" the city tax and some.

do you write off your transportation and lunch expenses?

[Pearse]

They haven't sent me the 'gaijin form' this time.
They'll probably ask me to fill one out at the office when I eventually go there at the last minute.

I think the news said that the deadline for filing taxes would be set back, but I didn't catch how long.