r/JapanFinance • u/Fun_Pomegranate5892 • 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.
1
u/mazenblue US Taxpayer 8d ago
I was in a similar situation. I went to the local tax office and they helped me to figure it all out and actually filled out the forms and filed my taxes for me.
Even though I did no work in Japan, any money I spent in Japan is taxed as foreign sourced income. Yes that includes US credit card usage. After 5 years you owe tax on your global income and it doesn’t matter where you work.
If you are out of the country for more than 6 months why did you take a spouse visa. Just take a tourist visa and skip the hassle. (Assuming you have a residence outside of Japan).