As I understand it, if you have a salary of >20M and over 100M in assets (globally), you have to file a report on your assets.
In my case, I have shares in a startup in the US which are worth well over 100M yen on paper ('worth' derived by exercised shares * FMV), though in reality they cannot be sold or moved, and I have a strong expectation that due to preferred shares and other shenanigans, they're likely to end up worth closer to 0 than their current on-paper value.
This leads me to having the following questions about filing my asset reports, and about these assets in general:
- Do I have to report them, even though they are illiquid?
- I early exercised these shares, which means I paid up-front, and then they vested over time. Is the basis in yen of a given share: a) the early-exercised value (say $1) converted to yen the day I early exercised, before it vested, or b) the early-exercise converted to yen on the day the share vested (I.e. up to 4 years later due to the usual 4 year vesting cycle). Or c) the FMV at the point in time it vested, even though I paid less for it via early exercise.
- I also have stock options which I have not exercised. I do not have to report these, right?
I will add one additional question:
These do count towards the exit tax, right? If I were to leave Japan, I would have to pay capital gains on these, even though they're illiquid and likely to tend towards 0, right?
by kamikabu