Gaijin/Overseas Income-Friendly Accountant?

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baragua
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Gaijin/Overseas Income-Friendly Accountant?

Post by baragua »

Hey gang, not sure if this is the right section for this topic--please recategorize if I got it wrong.

So I'm hoping someone here will know of an accountant that might be able to advise me on my work situation post-move. I'll officially be residing in Japan from December 2, and it looks like I'll remain on my current job's payroll after I move, through at least the end of the year (it's a US company and I'll be on a spouse visa). From what I understand, I'll owe Japanese tax on any income I earn while residing in the country. However, it seems like my company is content to just keep my current arrangement going--i.e., deducting US federal and state taxes.

It seems like it could potentially be a knotty issue, so I'm hoping to talk to a professional. Unfortunately, my current accountant isn't super on the ball when it comes to expat tax stuff beyond the basics required of a "US person" living abroad. Anyone know anyone good? I'd love to throw them some business! :)

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Gaijin/Overseas Income-Friendly Accountant?

Post by edmundedgar »

This doesn't answer your question but have you tried asking on https://www.reddit.com/r/JapanFinance/ ?

baragua
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Post by baragua »

Hey man, thanks for the suggestion--I had forgotten that sub existed. Will cross-post there for sure. If anyone has any recos, though, please don't hesitate to share!

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Zasso Nouka
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Post by Zasso Nouka »

I don't have any recommendations for you but would like to sympathise as the tax situation for US citizens does seem a lot more complicated than for the rest of us expats.

baragua
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Post by baragua »

Yeah man, it sucks. What's worse is that my wife is now forever also a "US person" on account of her having permanent residence. It's not the end of the world--you have to file US taxes every year on top of doing so where you live, but you don't normally have to pay unless you earn above a certain amount. But it's a pain the ass nonetheless.

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Post by UeNSaVOr »

baragua wrote:
Sun Nov 14, 2021 9:32 am
Yeah man, it sucks. What's worse is that my wife is now forever also a "US person" on account of her having permanent residence. It's not the end of the world--you have to file US taxes every year on top of doing so where you live, but you don't normally have to pay unless you earn above a certain amount. But it's a pain the ass nonetheless.
Definitely. I can't use NISA or iDECO. I also can't contribute to any retirement accounts in the US (which are taxed here coming out). I am really concerned about things in my future because of this, and it is part of the reason I'm working toward self-sufficiency as much as possible.

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Post by Zasso Nouka »

baragua wrote:
Sun Nov 14, 2021 9:32 am
Yeah man, it sucks. What's worse is that my wife is now forever also a "US person" on account of her having permanent residence. It's not the end of the world--you have to file US taxes every year on top of doing so where you live, but you don't normally have to pay unless you earn above a certain amount. But it's a pain the ass nonetheless.
UeNSaVOr wrote:
Sun Nov 14, 2021 6:01 pm
Definitely. I can't use NISA or iDECO. I also can't contribute to any retirement accounts in the US (which are taxed here coming out). I am really concerned about things in my future because of this, and it is part of the reason I'm working toward self-sufficiency as much as possible.
You both have my sympathies. As a UK citizen it's a much easier tax regime.

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Post by Otona Cream Pie »

baragua wrote:
Sat Nov 13, 2021 5:43 am
So I'm hoping someone here will know of an accountant that might be able to advise me on my work situation post-move. I'll officially be residing in Japan from December 2, and it looks like I'll remain on my current job's payroll after I move, through at least the end of the year (it's a US company and I'll be on a spouse visa). From what I understand, I'll owe Japanese tax on any income I earn while residing in the country. However, it seems like my company is content to just keep my current arrangement going--i.e., deducting US federal and state taxes.
Seems simple....you don't get taxed on global income until you've been here 5 years so you shouldn't have any tax obligations in Japan. Unless they are going to pay to your Japanese bank account, shouldn't be taxed like you made the income in Japan.

If you want to keep things this way, you can create an LLC or other entity and have it accept payments rather than stay as an employee. You still pay taxes but keeps the taxes you pay in the states. (but likely lose any employee benefits) This assumes the employer is flexible but if they are, works out nicely.
UeNSaVOr wrote:
Sun Nov 14, 2021 6:01 pm
baragua wrote:
Sun Nov 14, 2021 9:32 am
Yeah man, it sucks. What's worse is that my wife is now forever also a "US person" on account of her having permanent residence. It's not the end of the world--you have to file US taxes every year on top of doing so where you live, but you don't normally have to pay unless you earn above a certain amount. But it's a pain the ass nonetheless.
Definitely. I can't use NISA or iDECO. I also can't contribute to any retirement accounts in the US (which are taxed here coming out). I am really concerned about things in my future because of this, and it is part of the reason I'm working toward self-sufficiency as much as possible.
Why can't you contribute to a retirement account in the US?

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Post by baragua »

Otona Cream Pie wrote:
Thu Nov 18, 2021 1:26 pm

Seems simple....you don't get taxed on global income until you've been here 5 years so you shouldn't have any tax obligations in Japan. Unless they are going to pay to your Japanese bank account, shouldn't be taxed like you made the income in Japan.

If you want to keep things this way, you can create an LLC or other entity and have it accept payments rather than stay as an employee. You still pay taxes but keeps the taxes you pay in the states. (but likely lose any employee benefits) This assumes the employer is flexible but if they are, works out nicely.
OK, I clearly have some more homework to do on this stuff. Thanks for dropping the knowledge. The situation with my job is temporary--I was gonna outright leave but we worked it out so that I stay temporarily to help finish up some projects--but I suspect most of my income will come from freelancing for foreign companies. At least until I can pull off being an unemployed layabout. Creating an LLC sounds like a smart move. I have freelancer friends who can recommend someone to do that work.

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Post by Otona Cream Pie »

It's a more common arrangement than most will admit. I used "LegalZoom" years ago to create a Nevada-based LLC and there are plenty of services that will be your official mailing address there. You pay an annual fee for the LLC and the address but it's soo worth it. Set up an account for it with an online bank and you have global access to the funds.