A New Way to Lessen the Blow of Taxes in Japan

iStock_000017329557_

Japan is certainly an interesting country and, if you are a foreigner who has residence there, the experience is surely one that began with a bit of a cultural shock as there are so many differences in societal norms and in the living of simple, everyday life. Japan is unique in that it has both low birthrates (about 1.3 children per woman of child-bearing age) and astounding gains in life … [Read more...]

Don’t forget to tip the doorman – Japan’s new exit tax

Exit Tax

Congratulations! According to Japan’s tax agency, you might be too rich. Japan is implementing a new tax targeting those who are “wealthy” that is due to take effect by July this year. According to the wording of the legislation that will soon become law, (barring some kind of last-minute miracle), all who are considered by authorities to be permanent residents (and who own global financial … [Read more...]

How To Minimize Taxes On Your Canadian Rental Income While Living Abroad

004 - Copy - Copy

If you own real estate in Canada, renting the properties out can be an effective way to make some money while you’re living abroad. The problem is the Canadian tax code can be a little strict when you’re a non-resident earning Canadian rental income. The good news is with some simple planning and paperwork you can minimize the taxes on your rental income so more of it stays in your … [Read more...]

FATCA Reporting Requirements – Rules For Americans And Non-Americans

FATCA-IRS-bully

Globalization has made the World much more connected. It’s much easier for people to move around and build new lives in different countries. Unfortunately, this freedom has given people more options to cheat on their taxes as well. To fight tax fraud, the IRS in the United States launched a new program to track money around the World. This program has created new reporting requirements for … [Read more...]

Calculating Your Tax Bill in Japan – A Guide for Expats

img-1

Calculating how much you owe in taxes is challenging enough when you’re living at home. When you’re living abroad in Japan, it can feel pretty well impossible. The good news is that Japan uses a similar tax process as most Western countries. We’ve put together a straightforward guide that should help you figure out approximately how much you’ll owe in Japanese taxes as a resident of … [Read more...]

How To Protect Your Credit Score While Living Abroad In Japan

creditcards

When you’re living in Japan, you still need to protect your credit score back home. If you lose or damage your credit history while in Japan, it’s going to create problems when you go back. For example, you might struggle to qualify for a mortgage or car loan. Fortunately, it only takes a little bit of work to maintain your credit score while abroad. Keep your old credit cards active A big … [Read more...]

Japan Year-End Tax Adjustments

taxCredits

Japan Year-End Tax Adjustments Foreigners living and working in Japan who are accustomed to filing their income taxes might be surprised to learn that not every other country makes you do so. If you’re an employee working and living in Japan, you might be considered a resident, or “inhabitant,” for tax purposes, which means you may qualify for a streamlined procedure that takes you off the … [Read more...]

Potential 50% Penalty for Non-Tax Filers

grl

Recently on June 18, 2014 the IRS announced major modifications to its offshore voluntary compliance programs. These modifications were made to influence taxpayers to declare their overseas assets and to become compliant with current offshore regulations. These procedures are available to taxpayers residing in and outside the United States (penalties differ). Changes were made to both the … [Read more...]

Japan introduces Statement of Overseas Assets

dol

A new reporting requirement has been introduced for Japanese individuals with overseas assets valued above JPY 50 million at the end of a calendar year. These more stringent disclosure requirements reflect a more aggressive approach by Japan’s National Tax Authority (NTA) to ensuring that all overseas assets are correctly reported for the purposes of establishing overseas income for income tax … [Read more...]