Hi all.
I moved to Japan from the US earlier in the year, and am trying to calculate how much ‘foreign income’ I have this year. Although I’m still a ‘non resident for tax purposes’, I have transferred some money to Japan from the US, and I want to understand if my remittance this year has already surpassed my foreign income (so I can safely transfer more).
The majority of this income is in the form of RSU vestings. Reading here and on other sites, I believe I can just calculate the ratio of time spent in Japan, is that right? So for example:
If I received an RSU grant Nov 1st 2024, and moved to Japan August 1st. Then for a vesting occurring Nov 1st 2025, the ‘foreign income’ that Japan will consider will be 25% of the total vest amount? (since I was in Japan for 3 out of the 12 months from grant to vest).
And then assuming this 25% is equal to $1000 USD, does this also mean any remittance of foreign savings above this amount would not be taxed?
I also wonder if the tax the US will withhold on such vestings would impact this at all? I understand I can use it to apply for a deduction in my Japanese tax, but are there any other implications in terms of remittances?
by tell021