Tax thread

For topics not directly related to eikaiwa.
Forum rules
The basic forum rules are here :wink: . Refer to the BBCode Guide for information on using BBCode tags, plus this post about additional tags for embedding video.

Tax thread

Unread post by allblacks » Mon Dec 19, 2016 5:13 am

Yeah I know. Boring!

I just found out about a little loophole for foreigners living in Japan. It boils down to you being able to claim your foreign country residing parents as dependants and hence reducing your local government taxes.

I didn't know about this until last week. Dumb not to of course but the tax people don't tell you this stuff! Nor of course do I spend my spare time going through Japanese tax law!

The rules were changed earlier this year and you must provide evidence of transferring money but, and here's the juicy bit for me, you can legally ask for a review of the last 5 years with this information in mind.

I'm going to make enquiries this week and will report back. Cheers all!


Re: Tax thread

Unread post by allblacks » Fri Jan 13, 2017 10:09 pm

Update... Next week I'll be submitting all documents (see below) for this to happen.

1) 2012 to 2015 tax returns for each year
2) My birth certificate with translation into Japanese (self translated)
3) Copies of foreign remittance for the years above.
4) Japanese family register

Number 3 is not what you would expect. From 2016 Jan 1 onwards the payments you send must be to your parents account in your home country. Before that date you only have to show that you sent money home. It can even be to your own account. I have no problems showing that at all with bank passbook.

I'll report back once my claim is processed. Could be a decent refund indeed as I have paid a lot in tax. Especially in back taxes!


Re: Tax thread

Unread post by allblacks » Mon Jan 16, 2017 6:43 pm

Preliminary calculation for income tax refund is around 250000 yen.

The guy I dealt with was good enough to let me know what would happen next. The revised tax return is going to be sent to my city hall and processed again. The residence tax will then also be recalculated. I'm probably gonna see a similar amount in refund.

Some random info...

You can get them to subtract 380 000 yen per dependant.

Apparently some Chinese were claiming 30 odd dependents! Lol

I will up some information about this in English and Japanese if people are interested. You lot should be! Tax back is always good!


Re: Tax thread

Unread post by allblacks » Sat Feb 04, 2017 9:48 am

It's been about a month since I put this through. I'm yet to get my transfer refund from national tax agency but the city hall tax people decided to deduct the refundable amount from owing residence tax for this year.

I could be pissed off about that but all in all I have to pay less due to their rules.

To be perfectly honest, this is a pain in the arse and takes a while to be sorted out. But if you want to minimize your tax liability give it a go.

Post Reply

Who is online

Users browsing this forum: No registered users and 7 guests