<\/p>\n
Case 20<\/p>\n
<Question><\/p>\n
I am from Canada and have been living in Japan for 3 years, so I think that I am a non-permanent resident in Japan. I heard if I remit my money from Canada to Japan the Japanese income tax is imposed. Is\u00a0this true?<\/p>\n
I do not understand\u00a0how\u00a0the Japanese income tax could be imposed even on\u00a0money saved before coming to Japan.<\/p>\n
<\/p>\n
<Answer><\/p>\n
You have been living in Japan for 3 years, so you are a non-permanent resident. Non-permanent residents are subject to Japanese income tax on \u201cdomestic source income\u201d and other incomes received in Japan or remitted from outside of Japan*.<\/p>\n
The meaning of \u201cother incomes remitted from outside of Japan\u201d is quite unclear but it sounds like all remitted money is subject to the Japanese income tax. Based upon the Order for Enforcement of the Income Tax Act 17, if the other incomes received outside of Japan are remitted in the same year\u00a0they are subject to the income tax, in other words\u00a0if some money is remitted during a year in which no income was received outside of Japan, it is not subject to the income tax in Japan. The following are examples of remittance rules.<\/p>\n
<\/p>\n
Example 1<\/span><\/p>\n Total Income : 3,650<\/p>\n Domestic source : 3,000 (received in Japan)<\/p>\n Other source : 650 (received overseas)<\/p>\n Remittance : 0<\/p>\n <\/p>\n No tax<\/p>\n <\/p>\n Example 2<\/span><\/p>\n Total Income : 3,650<\/p>\n Domestic source : 3,000 (received in Japan)<\/p>\n Other source : 650 (received overseas)<\/p>\n Remittance : 300-650<\/p>\n <\/p>\n JPY300-650 is taxed.<\/p>\n <\/p>\n Example 3<\/span><\/p>\n Total Income : 3,650 (All income was received overseas)<\/p>\n Domestic source : 3,000<\/p>\n Other source : 650<\/p>\n Remittance : 2,000<\/p>\n <\/p>\n 3,000 is taxed regardless of the remittance.<\/p>\n <\/p>\n The remitted 2,000 is not taxed as 2,000 is remitted out of 3,000 which is supposed to be taxed in Japan<\/p>\n <\/p>\n Example 4<\/span><\/p>\n Total Income : 3,650 (Everything was earned overseas)<\/p>\n Domestic source : 3,000<\/p>\n Foreign : 650<\/p>\n Remittance\u00a0\u00a0\u00a0\u00a0 : 5,000<\/p>\n <\/p>\n 3,000 is taxed regardless of the remittance.<\/p>\n 650 is taxed as 650 of the foreign source income was remitted out of 2,000 (5,000-2,000)<\/p>\n The remaining 1,350 (5,000-3,000-650) is not taxed because the remitted money is taxed as far as it is foreign source income in that year. If the remaining 1,350 is remitted in the next year, it is not subject to the income tax because the income tax is imposed to income in the same year.<\/p>\n <\/p>\n Regarding your case, you saved the money in a Canadian bank account before coming to Japan, so the income tax is not imposed in Japan even if you send it to Japan.<\/p>\n <\/p>\n * https:\/\/tk-tax-accounting.com\/en\/english-income-tax-rules-for-a-salaried-person\/<\/p>\n <\/p>\n By Certified Public Accountant, Koji Takahashi,<\/em><\/p>\n Tokyo & Yokohama<\/em><\/p>\n","protected":false},"excerpt":{"rendered":" Case 20 <Question> I am from Canada and have been living in Japan for 3 years, so I think that I am a non-permanent resident in Japan. I heard if…<\/p>\n","protected":false},"author":5,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":{"0":"post-1057","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-news-2"},"_links":{"self":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/1057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/comments?post=1057"}],"version-history":[{"count":1,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/1057\/revisions"}],"predecessor-version":[{"id":6926,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/posts\/1057\/revisions\/6926"}],"wp:attachment":[{"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/media?parent=1057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/categories?post=1057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.tkpartners.or.jp\/en\/wp-json\/wp\/v2\/tags?post=1057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}