2026.05.25 International Taxation Tax Audits and Inquiries for Foreign Residents in Japan

Recently, more and more foreign residents in Japan are receiving inquiries or audit notices from the Japanese tax authorities. Why are tax inquiries increasing? One of the main reasons is the weak Japanese yen. Because the yen has dropped significantly, the value of foreign assets and overseas investments looks much higher when converted into yen. As a result, the Japanese tax office is looking closely at: In most cases, this is not about hiding money or avoiding taxes on purpose. It happens simply because Japan’s international tax rules are very complicated and hard to understand. Even for Japanese citizens, the tax system is difficult. For foreign residents who have to […]

2026.05.07 International Taxation Japan’s Exit Tax: A Framework for the Tax Deferral Decision

With the significant tightening of the so-called minimum tax regime starting in 2027, some individuals may be considering relocating overseas during 2026.If you become subject to Japan’s exit tax, one of the first key issues to consider is whether to elect the tax deferral. While the deferral allows you to postpone your tax liability, it also comes with additional burdens, such as interest charges, collateral requirements, and ongoing compliance obligations. Therefore, electing deferral is not always the right choice, and careful consideration is required based on your individual circumstances. In this article, we outline the basic framework for making this decision. <Comparison of Systems> Payment at Exit Tax Deferral Submission […]