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@phillev Thanks for the explanation, it's really helpful for my understanding. It sounds like I will have the flexibility to either (1) take all income as salary and pay only personal income tax, (2) take no salary and pay only corporate tax, or (3) take partial salary and pay personal income...

@tugg Regarding question 1, see this IRS webpage. https://www.irs.gov/individuals/international-taxpayers/classification-of-taxpayers-for-us-tax-purposes TLDR: You are a US person.

I've been trying to learn about income tax if setup a G.K. to work as a self-employed consultant. I could use some help me understand the following. I believe the income will fall under corporate income tax as described on this JETRO webpage. I assume that I can receive the income from my G.K...

@babytomato Incorrect. Remitting means sending money to Japan. Remitting income occurs when sending money from any source, because the remittance is deemed to come from the foreign source income for the purposes of determining taxable income. Incorrect. Remitting any amount of money does...

@babytomato Your reply states that "there's no way to remit any of the converted money to Japan". This shows a fundamental misunderstanding of how the income tax law determines that foreign source income has been remitted to Japan. You need to throw out any preconceptions about what it means...

@babytomato As mentioned in my other reply, remitted income is defined in Article 17 of the Order for Enforcement of the Income Tax Law. This means that any funds remitted to Japan (including from use of foreign credit cards in Japan) will be considered to be from income sources, regardless of...

@babytomato A long term visa is required if you want to live in Japan long term. A student visa won't get you there. And there is no retirement visa. So unless your spouse is Japanese or you have Japanese heritage, your only choice is to come on a work visa and try to eventually get...

@confusedfl22 If you do decide to hire an accountant, be sure to line them up soon. The accountants with experience supporting expats are in high demand and lose availability far in advance.

@confusedfl22 Hopefully someone else can correct me if I'm wrong, but I would guess that it should be straightforward to do your own taxes for the situation you described. The tax form and instructions are in Japanese, though. If you aren't able to read them, perhaps you can use Google...

@babytomato I’m not familiar with how that works. Maybe someone else can comment on whether that counts as remitting to Japan prior to establishing residency. @kristhuy, do you know?

@confusedfl22 In that case then perhaps you will exceed the IRS threshold next year and will owe US income tax and you can apply FTC. But if you still don't exceed the IRS threshold, then your Japan income tax should be pretty low. It won't be zero though, and perhaps that's what you're...

@babytomato You won't be able to open a Japanese bank account as a nonresident. So unless you already have an active Japanese bank account from a previous residency, this won't be possible.

@confusedfl22 If you have no other taxable income (US source or foreign source) and your Social Security benefit is below the taxable threshold ($25K if filing single or $32k if filing joint), then indeed it would not be applicable. But if this is the case, you would not be "losing a...

@babytomato See my other reply explaining that the income tax laws deem remittances to be from foreign income sources for the purposes of income tax. This is not something you can avoid, except if you do not send any money to Japan from any source whatsoever. If you become a nonresident status...

@confusedfl22 I don't know if this will be useful, but you have the option is to apply foreign taxes as either a credit or a deduction. See the IRS webpage Foreign Tax Credit - Choosing To Take Credit or Deduction for further information.

@kristhuy Thanks, I fixed my reply.

@hugobozs I think the JapanFinance wiki will help you understand this better. But here is a quick summary for your situation. SCOPE OF TAXABLE INCOME For your first 5 years, you're a non-permanent resident (NPR) for income tax purposes. Note that this term is for income tax purposes only and...

@babytomato I'm not an expert, but here is my understanding. Your statement implies that you would send money other than the proceeds from your capital gains. This would be considered remitted income, as described in Article 17 of the Order for Enforcement of the Income Tax Act. So for your...

I would add that some of the replies to your question may be applicable for a Japanese citizen. There are a few very knowledgable people in this subreddit such as @kristhuy who may be able to clarify. If not, you may want to get a consultation with a Japanese tax lawyer or accountant to get...

@johnnyfred1 In case you didn't see it, there is an excellent writeup on tax residency in the JapanFinance wiki for income tax. For a Japanese citizen, there may also be some considerations for when a Japanese person is required to register. I'm not the right person to comment on that, but...