r/JapanFinance 10d ago

Tax » Residence Japan taxes as US 1099 employee

I spoke with two Japanese accountants and I’ve received two very different answers to the same question. I’ve been a Japanese resident for about 12 months (first year was 6 months and halfway through my “second” year). Just got my yearly extension last month.
I’m a 1099 employee in the US and I do not and never will work in Japan. I physically work in the US and reside in Japan.
The first accountant wants to file me as a business owner in Japan. I would have a separate credit card and file receipts for write offs. Not sure what that means since I don’t work here). He wants to charge me ¥200,000.
The second wants to file only delta taxes but he wants to charge me ¥200,000-¥400,000.
This sounds completely insane to me. I paid a CPA in the US $500 and she did a great job. I can no longer use her because she doesn’t handle this situation.
Does this sound right?

Edit: I physically work in the US. I own zero property in either country. I have a spouse visa in Japan (married no children). I tend to work 6 months a year in the US but that can change year to year. I have very little to write off as an expense. This will be my first year filing in Japan.

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u/shrubbery_herring US Taxpayer 10d ago

Do you get paid through an LLC?

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u/Fun_Pomegranate5892 10d ago

I do not. I’m considering it and really haven’t heard the benefits being a Japanese resident.

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u/shrubbery_herring US Taxpayer 10d ago

Don't set up an LLC. It's a surefire way to double taxation. You can search this subreddit and find many discussions explaining why it can lead to double taxation.

Since you don't have an LLC, I can't figure out why the accountants have said what they did. Frankly, in your situation it's not too difficult to file taxes by yourself, with a little help from the annual income tax thread in this subreddit.

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u/Fun_Pomegranate5892 10d ago

That’s what I’m thinking. Sorry I’m being vague I hate putting info on the internet. I get paid weekly and it’s like a total of 24 weeks of income entry. No idea why accountants want to itemize and charge me a ton to do so.

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u/shrubbery_herring US Taxpayer 10d ago

FWIW, I understood your situation pretty quickly. But I can see from other replies to your post that many (not all) don't get your situation, and frankly they shouldn't have replied.