Vivinavi : Hawaii : (United States) Hawaii

• tax man
• 2022/02/07 (Mon) 22:27
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First of all, please understand that
basically the rule is that you cannot maintain an account in Japan if you do not have a certificate of residence.

This applies not only to FX but also to bank accounts, and if you do not have a resident registration in Japan, you
should first confirm that you cannot open or maintain an account regardless of your nationality.

In addition, we will explain
how you should handle your tax return if you reside in the US.

First of all, income earned in Japan should be treated as withholding tax in Japan.

As an example, if a Japanese tourist earns money gambling in Las Vegas,
there are two ways to process it.
One is to pay 30% income tax on the spot as a foreigner, or
the other is to file an IRS form and report the income in Japan
tax free.

For income from an account opened with a Japanese FX company while living in Japan,
1 ） Have the FX company withhold tax in Japan and complete the income tax payment
2 ） Report the income in Japan on your US tax return

In the case of 2), you will need to file an FBAR in the US.

If you have withheld taxes in Japan, you do not need to file a double return in the U.S.
since the tax treatment has been completed.

Furthermore, how much income you have in 1,000,000 yen is
based on the assumption that you file in the US, but the income from FX and stocks will be taxed at the capital gains rate
unless your US income is several hundred thousand dollars, in which case it is a part of other income. It will be taxed
at maybe 10% tax, which is about $1000.

I would like to inform the readers of this site that
1 ） people without a certificate of residence in Japan cannot basically maintain a bank account for the first time
2 ） income in Japan will be withheld at source and taxed in one country （ Japan ） to complete the payment of income tax in one country and not include it in the US
tax return
3 ） If this is not possible, not only bank accounts but also stock and FX accounts must be declared separately
on the FBAR or other tax returns.

• FX808
• 2022/02/07 (Mon) 23:22
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Thank you for the detailed explanation ！

My account does not seem to be able to withhold tax on FX profits, so I will report it as capital gains in the US.
（ It seems that stocks can withhold tax ）.

• こーの字
• 2022/02/08 (Tue) 14:56
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• Delete

Tax man, please let me study.

>> 2 ） Income in Japan should be withheld at source and income tax should be completed in one country （ Japan ） and not included in the US
return


In terms of construction,
US U.S. resident taxpayers are required to report their worldwide income and get
foreign tax credit ） if not all （ taxes collected in Japan ） back
, but

in practice, it is not possible to get the tax credit back in Japan.
Is it often the case that income withheld in Japan is not reported in the U.S. and the Foreign Tax Credit is not used
？

In the past, I had a small amount of income in Japan.