Tax Returns and Asset Disclosure After Returning to Japan

After returning to Japan, under certain conditions, you will be required to file income tax returns and disclose assets.

Tax Return Filing Period

The deadline for filing income tax returns in Japan is March 15 each year. Unlike in the U.S., extensions are not allowed unless there are special reasons.

Submission of Report on Foreign Assets (Kokugai Zaisan Chosho)

From the year you return to Japan, if the total value of your assets held outside Japan exceeds ¥50 million as of year-end, you are obligated to submit a Report on Foreign Assets (Kokugai Zaisan Chosho) to the tax office by June 30 of the following year, disclosing the details of those assets. However, this submission is not required for U.S. citizens during their non-permanent resident period.

Submission of Statement of Assets and Liabilities (Zaisan Saimu Chosho)

From the year you return to Japan, if certain conditions are met, you are also obligated to submit a “Statement of Assets and Liabilities(Zaisan Saimu Chosho)” by June 30 of the following year, disclosing all your assets and liabilities, both domestic and overseas.

Where should you claim the foreign tax credit?

The Foreign Tax Credit is a system designed to adjust for double taxation on the same income between Japan and the U.S For U.S. citizens or green card holders residing in Japan, Japan, as the country of residence, generally has taxing rights. Therefore, you will generally need to claim a credit for taxes paid in Japan on your U.S. tax return.