Japan: New Assets & Liabilities Reporting Requirement [PDF 158KB]
Under the 2015 Tax Reform, the Assets and Liabilities Statement (Zaisan Saimu Meisaisho) will be changed to Assets and Liabilities Reporting form (Zaisan Saimu Chosho) resulting in an increase in the disclosure of information regarding individual taxpayers’ world wide assets and liabilities.
Update: Japan 'exit tax' law delayed for 5 years for foreigners [PDF 147KB]
On March 31, 2015, the Diet passed the 2015 Tax Reform Proposal into law, which included the 'exit tax' provisions that would require the mark-to-market of certain financial assets and the imposition of capital gains tax on any resulting gains for certain residents in Japan moving abroad.
2015 Tax Reform Proposal and impact on individual taxpayers in Japan [PDF 74KB]
The 2015 tax reform proposal, known as Taiko (“Tax Reform Proposal”), was approved by the ruling parties on December 30, 2014. The proposed tax law changes will be submitted to the Diet during January, 2015 for consideration and are expected to pass without significant changes in March, 2015. This IAS alert focuses on the 2015 proposed tax reforms impacting individual taxpayers in Japan.
Ruling coalition parties proposing the ‘exit tax’ to target wealthy Japanese residents moving abroad
（Please refer to May 2015 Issue）
Net Investment Income Tax [PDF 136KB]
The Net Investment Income Tax (NIIT) went into effect on January 1, 2013 as part of the Health Care and Education Reconciliation Act of 2010. The NIIT will impose a 3.8% tax on various types of investment income to individuals, trusts, and estates in excess of certain thresholds. The new tax is also part of the tax payment requirements for 2013 (i.e., estimated tax payments).
Certain residents must start to report overseas assets held at year-end [PDF 213KB]
On March 30, 2012, the Diet approved the 2012 Tax Reform Bill, which included a new annual reporting requirement for tax residents in Japan with overseas assets of more than JPY 50 million in aggregate value. This reporting will start with 2013 year-end assets, and the first report will be due March 17, 2014.
2012 Japan Tax Reform Bill [PDF 131KB]
On March 30, 2012 the Japan Diet approved the 2012 Tax Reform Bill. High-earners can expect to pay more taxes and permanent resident taxpayers with significant offshore assets will be subjected to new disclosure requirements. This disclosure is similar to recent US initiatives, including noncompliance penalties, and will likely impact a number of long-term expatriate residents in Japan.
2011 & 2012 Tax Reforms and Impact on Individual Taxpayers in Japan [PDF 148KB]
On November 30, 2011, the Japan Diet approved the “Amendment to the 2011 Tax Reform Bill” and the “Special Measures to Secure the Financial Resources to Implement the Restoration from the Tohoku Earthquake Bill”. Furthermore, on December 10, 2011, the Japan Tax Commission released their 2012 proposed tax reforms. The focus of this alert is on the aforementioned bills which have been signed into law, and on the 2012 proposed income tax reforms and their impact on individual taxpayers in Japan.
Japanese Tax Rules regarding Charitable Donations
Typically, for individuals to claim a tax deduction for charitable donations on their Japan income tax returns, they would need to attach a qualified certificate from the registered Japan charity. But the good news for employees who participate in their company donation initiatives is that a tax deduction may be obtained even without the issued certificate from the Japan charity if the company obtains authorization from the tax office.
Proposed 2011 Tax Reforms
On December 16, 2010 the Japan Tax Commission released their proposed 2011 tax reforms. The focus of this Alert is on the proposed income tax reforms and other tax issues that affect individual taxpayers in Japan.
Employee Reporting of Foreign Parent Company Equity Awards
In recent weeks, a number of accounts regarding the underreporting of equity income by senior executives at foreign-based companies in Japan have been published in the Japanese press. This newsletter will address the company’s responsibilities in these situations, including how companies may take action to protect their reputations and any potential damage to their global brands.
Japan Announces Revised Immigration Laws, Including Additional Penalties
Revised immigration laws were enacted as of July 15, 2009 with corresponding procedural changes expected within three years by cabinet order. There are benefits introduced in the revised laws but also strict penalties for offenders (including imprisonment and/or deportation for certain offences).