Range of your taxable income differs on Residents and Non-residents of Japan
You may want to know difference between Resident and Non-resident. Because depending on these categories, range of your taxable income differs.
Range of your taxable income differs on Resident and Permanent resident of Japan
A person who has legal address (even if it is for one day) or temporary residence continuously for one year or more is included in a resident =Kyojusha=きょじゅうしゃ.
Residents, other than persons who are “resident, but not non-permanent ” needs to pay the income tax and special income tax for reconstruction (“income tax etc.”) for all domestic source income and foreign source income.
Meaning Permanent residents have need to pay the income tax etc. for all domestic source income and foreign source income.
So, if Mr.Pe is permanent resident of Japan and owns real estate in USA and receives rental fee (100 USD) from renters. Mr.Pe has a bank account in USA and he uses the bank account to receive the rental fee.
Once he receives the 100 USD, he keeps it in his USA bank account.
In this case, Japanese government still levies tax on this 100 USD.
Japanese government may not find this 100 USD. But he needs to report the income to Japanese government and pay tax.
USA government may also levies tax on this 100 USD. In that case, he can apply for foreign tax deduction.
Among residents, a person of non Japanese national who has legal address (even if it is for one day) or temporary residence in Japan for an aggregate period of five years or less within the last ten years is included in “a resident, but not non-permanent”.
“Resident, but not non-permanent” needs to pay income tax etc. for any income that is domestic sources and foreign source income that has been paid in Japan.
So, if Ms.Re is “Resident, but not non-permanent” and working in Japan and receive salary of 100 yen. As for this 100 yen, Japanese government levies tax.
Moreover, Ms.Re has owns real estate in USA and receives rental fee (100 USD) from renters. Ms.Re has a bank account in Japan and she uses the bank account to receive the rental fee.
In this case, Japanese government levies tax on this 100 USD.
Non-resident of Japan and Tax
A person other than “Residents” is included in a non-resident.
Non-residents need to pay the income tax etc. any income from domestic sources.
Assumed that Ms.T is living in India and comes to Japan for one week.
She will receive short term visa from Japanese embassy.
Even in the case of short term visa, she can work and receive remuneration in Japan as far as she receives permit from immigration bureau named “Shikakugai katsudo kyoka“.
In this case, she is non-resident of Japan and her income is domestic source income.
So she needs to pay tax to Japanese government.
