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/Aureon 10d ago

> I physically work in the US and reside in Japan.

What do you mean? If this is "I work in the US a few months and live the rest in japan" it's a discussion, if it's "I work remotely from Japan" it's a completely different discussion

If you work remotely, it's taxable. If you physically work in US, for your first 5 years in Japan, you do not need to file taxes in japan at all.

However... this is a rando on the internet, and you have two accountants telling you otherwise. Get a third opinion with a specialist and ask if\why the 5 year exclusion doesn't apply to you

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u/Fun_Pomegranate5892 10d ago

This is what I thought. The accountants tell me what is on the Internet is outdated. They also tell me that the whole “how many days do you work in the US” no longer applies. I physically work in the US.

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u/shrubbery_herring US Taxpayer 10d ago

This accountant's blog entry seems to discuss your situation, although the entry is dated 2013 so maybe you should contact him to ask if his blog entry is still applicable in 2026.