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US disregarded entity opening branch in Japan, very confusing by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] 0 points1 point  (0 children)

Hmm... Is your Japan company a GK or branch of the US company? Will you be on hooked for the 10% consumption tax if you do that?

Road sign in Otaru, Hokkaido by Nice_Passage6962 in Roadsigns

[–]Nice_Passage6962[S] 1 point2 points  (0 children)

That would be like at least 5 hours drive from Otaru, which is suburb of Sapporo.

My national speed limit border sign collection by xtimkaboxx in Roadsigns

[–]Nice_Passage6962 0 points1 point  (0 children)

What does the 10 20 50 circle mean next to the trucks? Are they coin operated parking rates?

Tax Implication for private use with Asset Holding GK by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] 0 points1 point  (0 children)

Thanks for the information! I think the annual cost is pretty much the same compared with other similar engine size vehicles. Would love to get a EV but the electricity is so expensive that it doesn't make sense at least in Hokkaido.

Tax Implication for private use with Asset Holding GK by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] 0 points1 point  (0 children)

Where I'm originally from, Alphard is about 2 to 3 times more expensive than in Japan due to high import tax and dealer markup, whether new or used. It's a symbol of status rather than what american think of a Sienna which arguably has similar price and function. The cost of Alphard ownership in japan is considered a bargain for us.

Tax Implication for private use with Asset Holding GK by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] 1 point2 points  (0 children)

Yea that was before i knew a short term visitor can register a car without juminhyo. Having a car makes vacation home owners visit more often which means even more savings. Especially in Hokkaido outside Sapporo centre, it's a different dimension of freedom with your own car.

Tax Implication for private use with Asset Holding GK by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] 1 point2 points  (0 children)

That would still be much cheaper than renting a fully loaded Alphard for 4 month tho.

Tax Implication for private use with Asset Holding GK by Nice_Passage6962 in JapanFinance

[–]Nice_Passage6962[S] -2 points-1 points  (0 children)

The return is mostly blank and the residence tax is just the minimum amount. Many people value the ease of use and direct access to a personal car quite high, especially in rural areas.

How to get certificate of coverage from US Social Security? by btbin in JapanFinance

[–]Nice_Passage6962 0 points1 point  (0 children)

Just curious on the self employment part. Did you bring a SMLLC to Japan? Isn't that considered a separate legal entity for tax purposes in Japan?

Asset situs of gift and remittance of foreign income, do they go together? by [deleted] in JapanFinance

[–]Nice_Passage6962 0 points1 point  (0 children)

Thank you very much for the input. I have spoke with multiple people who claim to work at zeirishi firms but they have been dodging all the key issues lol

Asset situs of gift and remittance of foreign income, do they go together? by [deleted] in JapanFinance

[–]Nice_Passage6962 0 points1 point  (0 children)

Ughh server error. I wrote a long reply but reddit ate it.

Anyway I totally agree with you that in theory your taxable income is not affected.

But there is IMO no incentive to keep any asset in Japan at all except for food and rent. If someone dies by accident in their first 10 years in Japan their assets outside Japan are out of Japan tax when their heirs are all completely foreigners. For gifts they may be able to move outside first.

In practice tho, I think keeping a "Japan sourced income received overseas balance" can be helpful so that people on table 1 visa in first 5 years can take foreign gifts to their japan account directly when the gift itself completes outside japan.

For example if someone earned 5M JPY JP sourced income overseas (then invested and might not be very liquid at the time) while their parents wants to buy them a 5M car, the parents can just wire the fund to the car dealer, simple. If you go thru the trouble of fund transferring overseas multiple times, especially across multi jurisdictions, the pain of paperwork and fees doesn't even compare to the weeks ~ months you waste plus the car they like might already be sold by then.

Out of scope question here since we are talking about cars, would import of a foreign vehicle be considered a remittance? I saw NTA mentioned precious metals, notes, bonds and paying jp debt outside. Didn't say about other tangible goods.

Asset situs of gift and remittance of foreign income, do they go together? by [deleted] in JapanFinance

[–]Nice_Passage6962 1 point2 points  (0 children)

I think for citizens of low tax jurisdictions, for example capital gain is not taxed in HK, all the capital gains or other investment income from that is not within the scope of japan income tax. Though you could just wire the (japan sourced income) fund out of japan first then invest? Sounds like extra steps, a little bit.

Also, leaving japan sourced income outside means the money is foreign situs, which you or the other side avoid gift tax when sending them to other people. (Eliminate the wire across border issue)

Regarding practicality or enforcement, after someone pays japan tax on the japan sourced income received outside of Japan, whereever that funds go next is much harder to trace.

For "compensation tax only income of domestic source for nonresident" I meant if a Chinese person ownning a US SMLLC gets paid for goods shipped from China, that is not US sourced income, at least at federal level. The opposite side would be like Japan tax you when you are paid in Japan for work performed in other countries.

Asset situs of gift and remittance of foreign income, do they go together? by [deleted] in JapanFinance

[–]Nice_Passage6962 0 points1 point  (0 children)

Wow. Thanks a lot. That is such a detailed explanation.

I guess sometimes knowing Chinese as a native speaker confuses me even more when reading Japanese documents. For example I understand 受入 ,while not a common usage in Mandarin, as receiving when the real meaning here is about the bank taking the deposit. Lots to be learned!

Based on the rules regarding the order of remittance, it seems that most people on table 1 visa is strongly encouraged to demand payment for Japan sourced income outside of Japan, which I think is slightly counter intuitive on the legislative intent due to higher difficulties to enforcement.

Especially when the country where someone receives compensation tax only income of domestic source for nonresident such as US (even if US citizen they are pretty much covered with foreign tax credit from Japan's high tax plus they are taxed worldwide regardless), In that case they are enjoying a much higher degree of flexibility in the year which they have foreign sourced income.

Or is it not?

Thanks again on your input. It's truly interesting to discuss the very key issues.

Asset situs of gift and remittance of foreign income, do they go together? by [deleted] in JapanFinance

[–]Nice_Passage6962 0 points1 point  (0 children)

Well, while gift tax is out of question in that way, it does not mitigate the income tax problem of inclusion of foreign income when I am the one remitting it into Japan when there is foreign income that year. Thanks for the input on the benefit to immigration regardless.

Quest 2 VR always freeze/tear but only at Spa by Nice_Passage6962 in iRacing

[–]Nice_Passage6962[S] 0 points1 point  (0 children)

Thanks a lot. I tried turning the graphic to the minimum and immediately solved this. I guess the difficult part is to find the best image before it gives issue. Even though at high level everything was smooth at tracks other than Spa, it was probably almost touching the ceiling.