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:

• Large money transfers from overseas into Japan
• Buying real estate in Japan
• Owning large assets abroad

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 deal with it in English, the stress and confusion can be even greater.

Common Tax Issues for Foreign Residents

Here are the most common tax topics that foreign residents need to watch out for:

• Tax Residency Status: Knowing exactly when you become a Japanese “tax resident.”
• Non-Permanent Resident (NPR) Rules: Understanding how taxes work on money sent to Japan.
• Foreign Exchange (FX) Gains: How to calculate profit from changes in currency values.
• Overseas Accounts: Japanese tax rules for foreign brokerage accounts, mutual funds, and investments.
• RSUs and Stock Options: How stock options from foreign companies are taxed in Japan.
• Foreign Tax Credits: How to avoid paying tax twice on the same income (double taxation).
• Inheritance and Gift Tax: How your visa type and length of stay affect taxes on gifts or inheritance.
• Joint Accounts: Who owns the money in overseas family accounts according to Japanese tax law.
• Foreign Structures: How Japan taxes foreign trusts, U.S. LLCs, or foreign companies.
• Controlled Foreign Corporation (CFC) Rules: Rules for income from companies in low-tax countries.
• Asset Reporting: When and how to file the Overseas Asset Statement.
• Exit Tax: Knowing if you have to pay a tax on your assets when leaving Japan.

How We Can Help

We specialize in international and cross-border tax matters for foreign residents living in Japan. Our firm has extensive experience helping foreign residents with tax compliance, tax inquiries, and official tax audits.

We offer clear and simple English support:

• English Communication: We speak and write in plain English—no complicated legal jargon.
• Document Review: We look over your English bank statements, investment documents, and financial records.
• Easy Explanations: We explain Japanese tax rules by comparing them to the system in your home country.
• Tax Office Support: We help you write replies, talk to the tax office, and stand by your side during an audit.

Moving Forward with Confidence

Receiving a letter from the Japanese tax office can be scary, especially in a foreign country.

If you are worried about your taxes, overseas assets, or a notice you just received, please contact us. We are here to give you clear answers, practical solutions, and the support you need to move forward with confidence.

• For inquiries by phone, please call us at +81-3-6369-8180 during business hours (Monday to Friday, 9:00 AM – 6:00 PM JST).
• For email inquiries, please contact us via our online form. We aim to respond within three business days.