I think I understand how things work reasonably well, but it’s always the false belief of understanding that is most dangerous.
Say I move to Japan in 2026 as a non permanent resident (for tax purposes). I haven’t lived in Japan for decades. Say i sell my house overseas in 2026 (after i have moved to Japan) generating a large capital gain but i don’t send the money to Japan until 2027. I have no other income, in Japan or overseas, in 2027.
My understanding is that remittances are taxed up to the amount of taxable overseas income you have in that specific fiscal year. Thus, if i had sent it in 2026, the full cap gains would be taxable. If i wait until 2027, though, and there is no income that year to offset the remittance, the whole amount ought to be considered an asset transfer from Japan’s point of view and thus be considered tax free.
However lately I began to question myself and wonder if its not just deferred. I.e., i don’t have to pay tax until it is remitted, but once it is remitted it is taxed regardless of the tax year.
I haven’t found anything to indicate the latter scenario, but I’ve made so many misinterpretations in the past I’ve learned not to trust myself.
Does anyone have a firm understanding of how this works? Preferably with links to official documentation (japanese or english is ok) that address this specific point?
by Prestigious-Fig-7143