“How ‘Amount Remitted to Japan’ is Calculated for Non-Permanent Residents’ Taxable Income
【Koshida Accounting Firm Column Date:】
Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.
I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.
If you are a non-permanent resident of Japan, you might find this blog helpful.
Example
① Domestic income paid in Japan: 400
② Domestic income paid outside of Japan: 200
③ Overseas income paid in Japan: 100
④ Overseas income paid outside of Japan: 50
⑤ Actual remittance to Japan: 120
Taxable Income
The taxable income of non-permanent residents in Japan consists of domestic income (①+②), overseas income paid in Japan (③), plus remittance. However, the remittance added is not the actual remittance (⑤).
Calculation of the amount remitted to Japan
Initially, consider that the overseas income paid in Japan (③) was remitted. Then, the amount obtained by deducting (③) from the actual remittance (⑤), which is 120-100=20, is added to the taxable income as the amount remitted to Japan.
Taxable income
① 400 + ② 200 + ③ 100 + 20 = 720
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