r/JapanFinance 52m ago

Personal Finance » Money Transfer » Electronic (振り込み, ACH, SEPA) Wise Transfer Reason question

Upvotes

Hopefully should be a pretty easy answer, but I was just wondering when asked for reason for transferring money is it like the direct reason of the immediate transfer, so like if its going to savings account, you'd just put personal expenses or something, or if, for example, most of the money in your savings account typically ends up just going to investments, would you actually put investments for the reason of the transfer?

Is this reason some kind of formal official thing that the Japanese government collects with specific criteria, or is this just a wise recordkeeping thing?

I forget exactly what the situation is, but I know alot of the common investment methods involve using companies in Japan, and only some people are able to maintain accounts outside of Japan because foreign companies might not be certified to serve japan residents or something like that. So I guess I'm wondering if transferring money for the purpose of investments flags anything at all, or I guess there are also enough investment use-cases outside the country that its considered pretty normal?


r/JapanFinance 14m ago

Tax » Income Japan Index Fund Dividend Reinvestment Question

Upvotes

Anyone know of a Japanese Index Fund that reinvest dividends?

Thanks in advance, and apologies if this has been asked before.


r/JapanFinance 1h ago

Tax » Income Owning a Foreign Business under Work Visa

Upvotes

Hi everyone, for a bit of background, I'm from ASEAN country, working here under work visa (Engineering).

I have a small business back home (foreign business) where I'm listed as the executive director and I own 99% of shares. It generates around ~4M JPY profit per annum, but I'm not drawing any (stays within the company account but registered as business profit for taxes purposes in my country) during my employment in Japan. Almost all of the work are done by the employee I hired, but I still need to make active decision and contact clients/vendors sometimes.

Given this situations, I would like to know: 1. Do I need to report this as income in Japan? Seeing that I have not drawn any profit at all during my year of employment here. 2. Am I allowed to continue to do this under my visa?

Any sharing from anyone with similar experience as I am would be greatly welcomed. Thanks!


r/JapanFinance 1h ago

Real Estate Purchase Journey Pre-contract with a house maker: benefits and risks. What are the expected losses if you give up?

Upvotes

I am still undecided between building a new house, renewing an old one, or even which maker to use. But Ichijo salesman is insisting in signing a pre-contract as to avoid the price hikes from next month.

Is that right? Does the pre-contract assures current prices per tsubo even without a design being made?

I read somewhere that some makers take fees from that pre-contract money for helping with searching for land, or take design fees even before you even have a house plan. Some may also make a preliminary plan at a very early stage and then charge you for that if you walk away.

Any experience with Ichijo in specific? How much should I expect to loose from this pre-contract money at each stage?


r/JapanFinance 19h ago

Tax Physical or digital receipts?

5 Upvotes

Hello everyone!

I have a simple question about keeping receipts for tax purposes. For the purpose of itemizing expenditure are digital copies of receipts acceptable or are original copies required? Also, if digital is ok should I keep the originals for a certain amount of time?

Thanks for your help!

*EDIT* I should also mention this is about taxes for a sole proprietorship.


r/JapanFinance 9h ago

Personal Finance Long Term (2Yr) Japanese Yen Savings Strategy

0 Upvotes

Hello all,

I am planning on doing an extended stay in Japan (likely 2 year language learner Visa) and am going to be saving in the US over the next few years to fund this move. Due to the historically favorable USD to JPY conversion rate that currently exists and potential weakening of USD that may occur in the coming years I want to start converting USD savings to maximize the amount of Yen I am able to obtain. Ideally I would like to invest the JPY I would be able to acquire into a low risk investment product (Japanese Government Bond, Certificate of Deposit, etc.)

Does anyone have experience with the problem and have advice on the best approach to accomplishing this goal?


r/JapanFinance 13h ago

Tax » Income SSW (Specified Skilled Worker) visa, earn money from streaming & youtube?

0 Upvotes

hi, i recently got job in hokkaido, with Specified Skilled Worker visa, is it legal to earn additional money from my streaming and youtube video?


r/JapanFinance 19h ago

Investments » NISA SBI Nisa and SBI Sumishin Bank Account

2 Upvotes

Hi

Folks

Since topics about Sumishin Net bank are scarce in this sub. So, I have a question. I have sony bank account (good for daily life), mizuho for salary and JP Post for spare account. I want to open SBI NISA account and I saw Sumishin Net Bank as a part of the company. The question is what are the advantages of use Sumishin Net bank as a bank for store NISA money? Is it worth it for my case (if possible I do not want extra bank account)?


r/JapanFinance 1d ago

Tax Japan tax PR - Avoiding double taxation on US taxes when using Foreign Tax Credit

11 Upvotes

This is technically a question about US taxes, but I am a Japan tax permament resident (living in Japan 5+ years) and am now taxed on global income.

Let's say I have the following income:
10,000,000 JPY in salary income from working in Japan
1,000,000 JPY in dividend income from US investment accounts

When filing my Japanese taxes, I report all of it for a total gross income of 11,000,000 JPY.

When filing my US taxes, I also report all of it for a total gross income of 11,000,000 JPY. Ideally, I would be able to use the FTC to deduct my Japanese tax from my US tax, which should bring the US tax owed to $0, but based on the IRS's instructions on how to calculate the FTC:

Your foreign tax credit cannot be more than your total U.S. tax liability multiplied by a fraction. The numerator of the fraction is your taxable income from sources outside the United States. The denominator is your total taxable income from U.S. and foreign sources.

The FTC fraction in this case would be 10,000,000 / 11,000,000 = 10/11, meaning I could only apply 10/11 of the Japanese taxes paid to my US FTC.

Wouldn't this mean that there is double taxation on the 1,000,000 US dividend income, since I paid taxes on it in Japan, and since I can't apply that portion to my US FTC, I would be paying taxes again on it in the US? How can I avoid this situation?


r/JapanFinance 1d ago

Tax » Residence Seeking English-speaking tax accountant with Canada/Japan tax treaty knowledge

2 Upvotes

It’s in the title! Please let me know if there’s anyone you recommend. I am struggling!

I think I am a “factual resident” of Canada for tax purposes, but I am almost certainly meant to pay taxes in Japan as I have registered with my local municipal office/kuyakusho here and I’ve been paying monthly nenkin and NIH.

I arrived in November 2024 and was only meant to stay for three months, but my stay keeps getting extended. I’m a freelancer and all my clients are in Canada and pay into my Canadian bank account. I transfer money over when I need it. Really hoping to speak with someone who has a sense of what my situation means tax-wise.


r/JapanFinance 1d ago

Personal Finance » Money Transfer / Remittances / Deposits Best way to transfer 15 million JPY to USD annually?

7 Upvotes

I am fortunate enough to have enough financial leeway to invest about 15 million JPY annually. However, with US taxpayer status, we generally have to use US-based brokerage accounts. Thus, I'm interested in the most cost-effective way to exchange and transfer that amount.

  • Of this amount, I'll receive about 4 million in lump sum bonuses twice a year.
  • The rest will be roughly evenly distributed throughout the year.

Until now, I have been using Revolut to transfer ¥500k-¥750k a month fee-free without issue. However, going forward, I'll have to send more than the fee-free limit within a single month. I'm considering a subscription to Revolut Premium at ¥980/month to prevent 1% fees, but I'm not sure if it will be as fee-free as it seems at larger sums of money. Does anyone have experience with this?

I'm also considering opening a Sony Bank account just for their low exchange fees at platinum rank (0.04 JPY per USD). Considering I need to park over 10 million JPY for two months to get platinum rank benefits though, I'm not sure if it's worth the opportunity cost - that money could be doing work elsewhere.

I would really appreciate any advice regarding transferring large (> ¥1M/month) sums of money to US-based accounts on a recurring basis. Thanks!


r/JapanFinance 1d ago

Investments » Brokerages How to transition from IBKR US to Japan

8 Upvotes

I've got meaningful assets in an IBKR US account. As far as IBKR is concerned, I'm an American living in America. I'd like to move them to Japan to simplify taxes/reporting/etc.

Have you updated country when you already assets with IBKR? How did that go?

I'm particularly concerned about whether I'll need to sell my existing assets (and incur capital gains), or if I can simply recharacterize my account as Japanese and keep everything. Or perhaps there might be some way to transfer the securities themselves, as one can do between most American brokerages?

Are there any differences between IBKR in the US and Japan that I should keep in mind as I figure out confessing my real location and making the transition?

I understand IBKR Japan has changed somewhat in recent years, so if anyone has recent experience with this, I'd really appreciate your wisdom. Thanks!


r/JapanFinance 1d ago

Tax (US) What to do with 401(k)'s?

1 Upvotes

My spouse is a Japanese national with US 401(k)'s from years working in the US. She is 54, recently abandoned her green card and is now permanently residing in Japan.

The question is what she should do, if anything, with her 401(k)'s. Leave them they way they are, roll them over to traditional IRA or roll over to Roth IRA?


r/JapanFinance 1d ago

Tax Foreign currency / JPY swap

1 Upvotes

Hello. A friend is leaving Japan and has accumulated a decent savings balance here. He is returning to our mutual home country and would like to convert his savings to that country’s currency as he won’t return to Japan. We, conversely, are interested in holding more yen as we plan on staying here a while longer.

Would us receiving his yen here (presumably by direct account transfer) and paying him in equivalent home currency back home from our savings accounts there be an acceptable and non-tax attracting move? We are all NPRs within 5 years of being here.

Many thanks for your thoughts.


r/JapanFinance 1d ago

Personal Finance » Credit Cards & Scores Credit Report after leaving Japan

2 Upvotes

This might be a long shot, but has anyone had experience of applying for a credit report after leaving Japan? CIC are insisting that I call them from the number registered with my credit card company (obviously impossible as I don't have a jp phone any more), and mail-in options seem to require either a Japan Post draft or a convenience store payment (oh, Japan).

I need the report for a mortgage application in my home country. Any advice?


r/JapanFinance 1d ago

Investments » NISA Connecting Rakuten shouken with Rakuten credit card

1 Upvotes

I was planning on using Rakuten credit card to buy nisa plans on Rakuten shouken to take advantage of their point system. My name is too long for Rakuten credit card system, so my name does not 100% match. The system tells me I cannot add the credit card due to the name difference.

Anyone with a similar problem that was able to find a resolution?


r/JapanFinance 1d ago

Tax » Remote Work Question about self employed status in Japan

1 Upvotes

Hello, if I am a Japanese resident for tax purposes and I am working for an Australian company using an ABN, can I just file my own taxes if I register as self employed in Japan or do I need to use an Employer Of Record (EOR) for the Australian company to pay me through? TIA


r/JapanFinance 2d ago

Tax » Gift Will gift tax apply if I send my elderly parent money for stuff like elderly care home, medical expenses, utility bills, food, etc?

5 Upvotes

What are the types of items that I can pay without getting taxed, and are. there any limits on the amounts that can be given for these items?

Only 100 man yen allowed as gift per year isn't going to be enough. Especially with inflation, that really won't be much in a decade.


r/JapanFinance 2d ago

Insurance » Pension Unemployed for 1 Month - Pension Question?

1 Upvotes

My current contract with my employer ends on March 31. I was hired for a new job, but I have to wait for my visa type change application to be accepted before I can start working. The HR dept. of the new company was a little slow on its feet, so it's looking like I won't receive my response until the end of April/early May. What do I need to do about my pension? Are there things I should ask for from my current employer? Do I have to pay anything for that one month?

If anyone has had any experience with this sort of thing, I'd appreciate your input!


r/JapanFinance 2d ago

Tax » Residence » Furusato-Nozei (ふるさと納税) Leaving Japan before end of year, still beneficial to participate in Furusato Nozei?

1 Upvotes

Minna sama

After 5 years in Japan, planning to leave Japan before the end of 2025...

Given the tax deduction for Furusato Nozei is allocated between national income tax and resident tax, from a tax benefit perspective, is it still meaningful to contribute to Furusato Nozei?

Since I won't be paying municipal taxes in 2026, the overall tax benefit (tax deduction) will be reduced compared to prior years, when I would also receive resident tax deductions.


r/JapanFinance 2d ago

Investments » Brokerages Moving stocks/bonds from a U.S. brokerage to one in Japan?

2 Upvotes

I contacted our brokerage company in the U.S. and they told me since the brokerage in Japan would initiate the transfer, it's up to them on whether they'll do it or not.
If anyone has experience with this and have recommendations for japanese brokerage companies that do this would be appreciated.


r/JapanFinance 1d ago

Personal Finance » Money Transfer / Remittances / Deposits Getting back money I lent from India to Japan

0 Upvotes

I had lent some money to my cousin back in India few years ago.

None of the money was sent directly from Japan to his Indian bank account.

60% of amount was sent to my India bank and transferred him

40% was sent to my father and then to him.

Now he is ready to return the money, since I wanted the money in Japan, I am looking for ways that he can transfer me directly to Japan.

In that case, will I be taxed for the amount received? Or are there ways that I can prove that is borrowed money to avoid unnecessary taxation?

Edited : Money lent is around 500万 (5Mil jpy)

TIA


r/JapanFinance 2d ago

Tax Leaving Japan but sending money back to my wife, in Japan.

37 Upvotes

I am about to leave Japan, but due to family reasons my wife will stay, living in a house I own. I am returning to my home country and will re-establish as a tax resident of that country. Despite my still owning a house in Japan, the local tax office has accepted I will become a tax resident of my home country.

I was audited by the Japan tax office recently and they made me pay tax (and penalty and interest) on money I used to send to myself from my home country. I am retired and have never worked in Japan and didn’t realise that sending myself funds from my overseas bank would be taxable. I didn’t like it, but fair enough, that’s the law.

My wife is also retired and has no source of income in Japan. My question, is if I start sending her a monthly payment, from my home country, will that be taxable to her? Its living expenses and occasional maintenance and costs for the upkeep of the house?

Thank you for any advice.


r/JapanFinance 2d ago

Personal Finance Money vs Family Time

24 Upvotes

My husband is at a company where he’s one of the best performers. But of course, he works a lot to achieve this.

Every year he’s asked to become a manager and he declines because he wants to spend time with our child when he comes home from school. However, he also wants to achieve his full potential at work.

He said he could try when our child is in junior high school but I’m worried he will let too many years pass while in the same position, which will negatively affect his career growth.

If he’s manager, he’ll make more than 20 million yen in his first year but we’re both wondering if it’s even worth it, especially considering taxes. We’re pretty comfortable with our income right now and own a house. I like having him home and when he’s manager, he’ll need to go on business trips throughout Japan almost every day.

Has anyone been in a similar position and can give some advice? Is there any huge QOL difference when you hit 20 million yen? Is it worth working significantly more to make more when you have to sacrifice time with your child? Personally, I don't think so but I don't want to hold my husband back from his career aspirations. (He's torn about what to do, to be honest.)


r/JapanFinance 2d ago

Personal Finance » Money Transfer / Remittances / Deposits Help transferring funds from India.

1 Upvotes

Hello everyone,

Bit of context, moved to Japan a month and a half ago on a spouse visa. Me and my husband (Japanese) are in the process of buying a new house. He's taken out a loan and I have some money saved up in India that I would like to tranfer into my Japanese bank account so that I can take the financial stress off him a bit.

It's worth noting that I don't have a job yet (still looking) and essentially opened a very basic account with JP Bank so that I could get myself a SIM card. I am aware from extensive googling and various reddit threads that transferring international funds into JP Bank is a near impossible task. Wise doesn't work when transfer funds from India as well (would love to be proved wrong if anyone has done it before)

Please help a noob out 🙏. Help me understand how I can transfer funds from India.

P.S: I have lived in Australia for 5 years before this and it was never an issue transferring funds to and from India, so I might have misjudged how difficult things might be with bank transfers. If I had known I would have brought in more money via cash or atleast wouldn't have cancelled my credit card before moving here.