Hi, sorry for your 1 millionth remittance to Japan thread. I've tried reading as many articles and threads on this subject as I could, but there are still some details I want to confirm.
Background: American citizen, worked in the US this year before moving and becoming NPR seishain, want to transfer money but still receiving some interest-based income from various cash management funds
- Timing: Does Japan only count foreign-source income from when I became NPR, or all foreign-source income during this calendar year? That is, if I earned 10M JPY in the US from salary before I came here and 1M JPY in the US from interest after, and I transfer >=11M, does Japan want to tax on 1M or 11M?
- Taxation Type: How does Japan see the amount being remitted into Japan? Is it all regarded as income, or do I need to specify the original revenue type?
- Double Taxation Relief: Can I claim foreign tax credits?
- Reporting and Payment: How should I report and pay for this? Do I file it on my kakutei shinkoku next February-March, then I will receive a bill (or separate bills for national, municipal, etc.) later that year?
Thanks in advance.
by Material_Cow_8173
2 comments
>Does Japan only count foreign-source income from when I became NPR, or all foreign-source income during this calendar year?
Only foreign-source income received *after you moved to Japan* can be taxed by Japan.
>if I earned 10M JPY in the US from salary before I came here and 1M JPY in the US from interest after, and I transfer >=11M, does Japan want to tax on 1M or 11M?
1M.
>How does Japan see the amount being remitted into Japan? Is it all regarded as income, or do I need to specify the original revenue type?
Remittances are not income, and remittances themselves are never taxed. Only income can be taxed.
If you have 1 million yen worth of interest income, and you remit at least 1 million yen into Japan, your 1 million yen *of interest income* will be taxed by Japan *as interest income*.
>Can I claim foreign tax credits?
See [this section](https://wiki.japanfinance.org/countries/us/treatysummary/) of the wiki. The availability of foreign tax credits depends on how the treaty divides taxation rights between the two countries. In the case of interest paid on US bank deposits, for example, the US has no taxation rights under the treaty, so Japan will not provide a foreign tax credit. Instead, you must claim a foreign tax credit on your US tax return.
>Do I file it on my kakutei shinkoku next February-March
Yes, you just include the income on your 2025 income tax return (due March 16, 2026). There is a special attachment (PDF [here](https://www.nta.go.jp/taxes/shiraberu/shinkoku/yoshiki/01/shinkokusho/pdf/r06/19.pdf)) for non-permanent residents.
>I will receive a bill (or separate bills for national, municipal, etc.) later that year?
In principle you must pay your income tax liability when you file your income tax return. Technically the payment deadline is the same as the filing deadline (March 16, 2026), but if you designate a bank account and authorize the NTA to make a direct debit, they will take the money sometime in April.
As for the residence tax on your 2025 income, if you don’t have a Japanese employer you will receive the bill at your home address in early June 2026.
If you have a Japanese employer, there are two possible outcomes: (1) your municipality can send your employer the bill for the residence tax on your 2025 employment income and send the bill for the residence tax on your other 2025 income to your home address, or (2) your municipality can send the bill for the residence tax on your entire 2025 income to your employer.
Whether option (1) or (2) applies depends on which box you select on the residence tax section of your income tax return. Note that if you pay the residence tax on your 2025 income via your employer, you will pay it in 12 monthly instalments from June 2026 to May 2027.
1. Foreign source income from when you became tax resident in Japan, which is normally when you moved to Japan. One wrinkle to note is that personal taxation uses cash basis, so if you e.g. got paid your last paycheque from your US employer after moving to Japan, that will be taxable.
2. You prorate all your different kinds of foreign source income (from the part of this year where you were tax resident in Japan) according to the amount you remitted.
3. Probably. Out of my depth there.
4. Yes ish, you have to be a bit proactive about paying your national tax but they can give you a payment slip based on your filing if you ask. Note that the payment deadline is the same as the filling deadline, so don’t leave it to the last minute.
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