Japan to give tax breaks for long-term foreign residents to attract financial experts

"The tax incentive will deliver a message that we want them to live longer and work longer in Japan," the source said.

Great. It's a start.

Except that as I understand it,

https://www.retirejapan.com/blog/the-monday-read-96/

apparently 'long-term residents' seems to mean the kind of people who come in on those 'highly skilled' visas and then go away again, as apparently it will not apply to residents with PR. So how exactly they are supposed to be enticing people to stay longer is anyone's guess.

Japan plans to implement tax incentives for long-term foreign residents

How about tax incentives for the Japanese people too?

Still, as a long-term resident with no intention of turning Japanese, it's good news personally.

Under the current system, Japan imposes an inheritance tax on foreigners' overseas assets if they live in the country for more than 10 years

I presume this is for foreigners who inherit assets from their parents etc while happening to reside on this here particular strip of dirt.

It's crazy to have taxes on this - Japan has nothing to do with those assets which are abroad. Rather they should be happy if their (foreign) residents bring those extra assets into the country, because they'll be able to tax it plenty later on if that's the case. Consumption tax. The inheritance tax just encourages keeping the money hidden away overseas.

Honestly the inheritance tax should just be done away with entirely, as with many other countries that have already moved in that direction. With inheritance tax in place they've ended up creating all sorts of loopholes such as Junior NISA and gift allowances, on and on. So much complication, and it's not like they get much revenue from inheritance tax in the first place - about 1.5 trillion yen a year. Just hike the consumption tax rate a bit and it would cover that, and all the mess it creates could be eliminated. Or just borrow the 1.5 trillion yen, because the government is already borrowing 40 trillion yen a year as it stands, what's a little more gasoline on the debt furnace?

"The tax incentive will deliver a message that we want them to live longer and work longer in Japan," the source said.

Great. It's a start.

If you've lived in Japan over 10 years and then leave, the Japanese tax office can come after you

I believe this law isn't about that but rather about taxing your overseas assets or the assets of your overseas family if you die in Japan.

Well, this is good news. The Japanese inheritance tax laws as they are now are ludicrous. If you've lived in Japan over 10 years and then leave, the Japanese tax office can come after you up to 5 years after you leave the country if your inherit money within that time. The nerve!

Japan lost my investment 20 years ago and I have doubled my money overseas in that time...

In order to tax those assets, the Japanese government needs to be able to find those assets. Wealthy expatriates have ways to shelter or hide such assets in the event they are concerned with dying in Japan after living here for more than 10 years.

And here was me thinking it was a serious tax break, and not something only people with rich relatives would ever worry about. Of course, if the inheritance tax were ever a genuine worry, there is no doubt rich people would find a way out of it or simply wouldn't declare it.

Long term residents who have 'permanent residency' cannot vote. No voice. Yes, have basic rights but those are no where to found if cross the law. And if any further proof was needed, see how such people have been treated during this pandemic.

Well Said!

Unless Japan gives a proportion of land for foreign investments, free trade, and autonomy like Hong Kong, then the foreign investors will consider investing at the country. The historical example is Dejima where Japan allows foreigners to freely trade with the country. Except this time will be financial systems that help Asian elites and Western elites laundering money more efficiently. Like London, the capital of crooks and corrupt business elites.

Long term residents who have 'permanent residency' cannot vote. No voice. Yes, have basic rights but those are no where to found if cross the law. And if any further proof was needed, see how such people have been treated during this pandemic.

Oh god, not this again. Every single harebrained scheme they've come up with before has failed. Do they know why? Because, unless they do, these schemes will never work. Or maybe they don't care whether they work or not. You know, just making the public think that this country is the land of milk and honey. How many people did that new visa scheme attract last time?

And then charge them with something to get rid of them after they're no longer any use.

In the case of Brazilians, they were paid to leave. And to stay away.

And then charge them with something to get rid of them after they're no longer any use.

I wonder why people think foreigners coming into another country will get them first class treatment, when you are a foreigner in any country it is pretty normal to receive second class treatment in terms of policies.

Also imposes mandatory pension, even most of foreigners won't use it and will get only less amount from what they put on it.

That's not really true. I "use" it and my official projection shows my payouts will well exceed my contributions if I continue to pay until age 65 and live until 85.

In addition, many countries have pension accords with Japan, allowing you to totalize your contributions from one system into the other.

Keep dreaming, remove the biases 1st , that exists at work place.

Japan is one of the best county to live, but worst to work, not just in financial aspects, but career development and training programs.

Sad if Japan thinks this makes any difference. Far too little to change anyone’s mind.

Japan to give tax breaks for long-term foreign residents to attract financial experts

given the way this country treats its foreign residents you'd need to have your head examined for thinking of coming here

@Sakurasuki,on point.

Under the current system, Japan imposes an inheritance tax on foreigners' overseas assets if they live in the country for more than 10 years,

Also imposes mandatory pension, even most of foreigners won't use it and will get only less amount from what they put on it.

"The tax incentive will deliver a message that we want them to live longer and work longer in Japan," the source said.

It need more than a message, it's not a diplomatic mission, it's practical business decision. There are more things that become consideration in practical business decision.

Higher taxes and language barriers are often cited as making Japan less attractive than other Asian rivals in the race to become an international financial hub.

Why it doesn't mention culture and bureaucracy? Only mater taxes and language?