I am living in Japan for 9 years on a work visa, and during 2025 I received some money from my parents, who have never lived in Japan, so this money is exempt from any gift tax in Japan.
The money is sitting in some accounts overseas, and I asked a Japanese accountant about how to move this money into Japan without causing any problems and he commented the following:
- Wait until 2026 to move it into Japan. Reason being that if NTA sees during a single tax year that a gift happened and that the money is in Japan, they may try to claim it falls in scope for gift tax.
- Remit the money into Japan *before* I reach the 10 year mark. I was surprised by this. I will submit the OAR for 2025, and for the accounts where the gifted money is sitting I will comment how much of those assets came from gifts. I'm also downloading the bank statements for the relevant months when I received the gifts. Between bank statements and the OAR, the existence of the gift before the 10 year mark will be well-documented. But despite having that evidence, the accountant strongly warned me that if I remit the money into Japan after the 10 year mark, the NTA may try to claim that the gift falls in scope for gift tax.
For a variety of reasons, for me to rush this money into Japan before that 10 year mark may be difficult. Has anyone come across similar or different advice?
Thanks!
by JazzMeAmadeus