Need Advice Bank Transfer To Japan

[Screwed-down Hairdo]

Especially in these tight times everyone wants as much of the tax pie as they can get.

Forget the tax pie. If it's all the same for you, I'd rather just have my share of the oppai.

[FG Lurker]

If it's all the same for you, I'd rather just have my share of the oppai.

Me too man, me too. And the pussy pie.

(Heh, nice edit but apparently I quoted you before you got it done.)

[FG Lurker]

Okay, as I said a couple of times above, I don't really know much about this, and I'm about to show that again now.

It turns out that the US/Japan tax treaty allows the Japanese tax office to directly pursue the US company for taxes if they determine the US company has a "permanent establishment" in Japan. "Permanent establishment" is the term used in the treaty apparently. The US company could be liable for Japanese taxes on all profits in this case -- likely resulting in complete double taxation. It is not clear (to me) how they collect this but that is probably covered in the treaty as well.

So it comes down to how visible the business is to the tax office. From what you have described, probably not that visible. However, if they do find it they will (pretty much certainly) demand taxes. So the chance of being discovered is reasonably small but the potential penalty is very large.

[Taro Toporific]

Seven Bank plans 24-hour international remittance service via ATMs
TOKYO, July 5 (AP) - Kyodo
Seven Bank, a Seven & I Holdings Co. arm, said Tuesday that it will begin a round-the-clock overseas remittance service on July 19 via its more than 15,000 automated teller machines installed at convenience stores and other locations across Japan. In partnership with Western Union, a major U.S. provider of money transfer services, the bank is aiming to enable cash transfers from Japan through more than 400,000 agents in about 200 countries and regions around the world...
...It will charge 990 yen for a transfer of up to 10,000 yen and 1,500 yen for sums between 10,001 and 50,000 yen. Fees will vary for remittances exceeding 50,000 yen depending on destination.
Major commercial banks in Japan currently charge around 5,000 yen per remittance.
People who hold or open an account at Seven Bank will be able to send money overseas around the clock from the bank's ATMs or via its website if they register information on recipients' accounts beforehand...more...

[IparryU]

my two yen on TT at japanese banks:
1. dont use Japan Post if you want to TT Yen to Foreign Currency
(I went to TT money with my client and they insisted on FXing even though we were TT JPY to JPY... they said that other countries DO NOT HAVE JPY ACCOUNTS...)

2. dont use MUFJ for large money TT. they just hassle you on why you have to transfer so much money, charges, more verbal and written hassle, and more cleric work that is just mind boggling...

3. Shinsei seems to be the easiest IMO because they never hassle you for doing TT. The only issue I have experienced is that some companies will not TT money to Shinsei for some "corporate purposes", but other than that, Shinsei is fine.

Regarding the tax guys seeing how much money is transferred... that is the norm and also a pain in the ass if you have overseas gains that gets transfered to your japanese bank... always good to have any non-JPY money TT to an offshore account (ie what chokonen888 was mentioning in post #9)

damn japanese banks really piss me off...

[matsuki]

If that someone represents the overseas business in Japan they are the agent of that business. Japan (and every other country) wants their share of taxes for work done in their country. That's the bottom line as far as I understand it.

Possibly but without and direct payments to/from that agent, I seriously doubt they'll be able to go after them personally....and that is even if they could find that person. Paperwork-wise, there is no documentation to link them to it. Eventually, if the business in Japan becomes large enough, there is a point where c

It turns out that the US/Japan tax treaty allows the Japanese tax office to directly pursue the US company for taxes if they determine the US company has a "permanent establishment" in Japan. "Permanent establishment" is the term used in the treaty apparently. The US company could be liable for Japanese taxes on all profits in this case -- likely resulting in complete double taxation. It is not clear (to me) how they collect this but that is probably covered in the treaty as well.

So it comes down to how visible the business is to the tax office. From what you have described, probably not that visible. However, if they do find it they will (pretty much certainly) demand taxes. So the chance of being discovered is reasonably small but the potential penalty is very large.

Yeah, the way I'm operating, no way they could consider anything a "permanent establishment" here. Without a PR visa, not even I am permanent. There is also nothing to make me visible nor am I using transfer pricing to sell any domestic goods like Amazzzzon. Not to concerned with how things are now but like I mentioned above, at a certain point, it becomes advantageous to have a KK here.