Iniesta reportedly pays back extra tax owed in Japan

Thats one thing I am confused about - if you live in Japan for say 5 years, and half way through your 6th year, you leave Japan and go back to your home country, the following year, do I pay the Japan tax authority on money earned until the day I Ieft Japan, or can I just pay it all to my home countries tax authority?.

Things the employer in Japan is required to inform. 99.99999% of companies do the employees taxes. Why don’t them mention that the club failed to pay or the club was trying to tax save.

Foreign players in Japan are classified as either residents or non-residents for tax purposes. If their contract is for less than one year and they are not accompanied by family members, they are classified as non-residents and pay less tax than residents, the reports said, citing the National Tax Agency. The Osaka regional tax bureau judged that during 2018 Iniesta was a resident as he lived with his family

Any husband/father will try to live with their family in every way they could but in Japan will see that as way to tax foreigners.

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"Therefore, the income during the period is under double taxation," he said, adding that he has demanded excess tax payment be returned based on the two country's agreement on double taxation.

So who will give tax? Is it Japan or Spain? Since both countries really want those millions.

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The Osaka regional taxation bureau declined to comment when contacted by AFP.

Even Osaka tax bureau can't really explain that, which rules that he need to obey based on his situation.

Of course they can, they just did.

Where, really? They can't really exactly point which law or tax regulation, that rules still open to interpretation, they really need to admit that.

"..The Osaka regional taxation bureau declined to comment when contacted by AFP..."

Iniesta reportedly pays back extra tax owed in Japan

So he is a better man and contributor to the Japanese people than Aso, Nikai, Kishida and the Abe faction with all their tax fraud which they try to evade and deny?

Pretty amazing for a Spanish footballer, and telling about the LDP pols.

@/dev/random

"The Osaka regional tax bureau judged that during 2018 Iniesta was a resident as he lived with his family members on a multi-year contract."

At that time Spain Tax Bureau might have another interpretation, especially in 2018 he just starting the contract and still be considered outside Japan domicile.

So? What obligation do they have to explain themselves to the press? Why is that an admittance of anything?

Why they hide from press, if they really did something that they believe and really sure is completely right, especially this one is high profile case. Official usually love all press coverage for something like this, if they do this right and coordinate this with their Spanish counter part.

Probably he was afraid of Spain with them going after Messi and Ronaldo, etc., and overpaid them.

@/dev/random

Give me five minutes with the Japanese tax code and even I can. It is not even an obscure law. Foreign residents with a domicile in Japan are taxed as so-called "non-permanent residents". Iniesta, having been in Japan for five years, may even qualify as a "permanent resident".

Tax bureau not only chasing him, yesterday news show that tax bureau chase several professional sports people. For Iniesta's case check again when he really start to play, it was around mid 2018. That can be really tricky for many tax jurisdictions, few day more or less, it will determine whether he need to pay to Spain or Japan. Japan tax bureau need to sort this with Spanish tax bureau, instead just announce Iniesta didn't pay his tax.

He received 30 million USD annually when he was with Japanese club, however he started in the middle of 2018. That can be pretty tricky to handle, to determine his domicile in 2018 https://www.espn.com.au/football/story/_/id/37553526/barcelona-andres-iniesta-set-join-vissel-kobe-japan-sources

@/dev/random

Believe it or not, what the Spanish tax bureau decides is irrelevant in Japan. If the Japanese NTA decides you are a resident, you have to pay taxes in Japan. It's really that simple.

Of course is that easy foryou to say that, you'd say simple if it weren't your millions usd.

So far he quiet tax abiding, Japanese tax bureau didn't say anything at all for his 2019,2020,2021,2022 and 2023. Because at that time, it's obvious he stay in Japan. However for 2018, he wasn't really evading tax, he might report those income to Spain that's why he didn't pay at all in Japan.

. I'm pretty sure Iniesta will not lose a lot of sleep over it. He will probably get the tax he already paid in Spain credited towards the Japanese tax. It's just a lot of paperwork.

You don't know about his sleep at all, unless you are in same bed with him. Same with tax situation, you don't know what kind of explanation of Spain Tax Bureau really tell about his tax situation in 2018. Each tax bureau might claim tax for each country, while that will left him and tax consultant to settle that. The best way he might have just not to pay anything until both of bureau really agree on something for 2018.

@/dev/random

Also, since you seem to believe all of this is arbitrary: Income Tax Act (Act 33 of 1965), Articles 2

There are several times of tax reform happened in the past 2010,2011,2016,2017,2019,2021,2023.

Not only that, tax treaties between countries also being updated and signed, so things is not that obvious as you think.

Andres Iniesta

Who??

It's not only about the Income tax, it's also about the ridiculous callous tax called Resident or City tax, which can grow to ridiculous level based on your income.

That tax is the worst invention of Japan, and only a couple of countries in the world have it.

Just another callous tax to milk the hard earning people working in this country.

Sounds to me like he did the right thing. Not sure why readers are getting their knickers in a knot over this. And once again I say: that’s one heck of a lot of tax!

You should only have to pay tax on earnings once, in the country in which you earned it. Taxing people twice is just theft.

If Im not a resident in Japan but a freelancer or have a contract of partnership with a Japanese firm I will still pay taxes to Japanese authority while living abroad, right?

Yuuju

If Im not a resident in Japan but a freelancer or have a contract of partnership with a Japanese firm I will still pay taxes to Japanese authority while living abroad, right?

You will only pay tax in Japan when you are a resident. You will pay taxes to your government. No double tax treaties.

You will only pay tax in Japan when you are a resident. You will pay taxes to your government. No double tax treaties.

wallace

perhaps the taxes will be paid by the company who will sell my goods in Japan, right? I will pay taxes share from the part of the profit in my country?

Yuuju

wallace

perhaps the taxes will be paid by the company who will sell my goods in Japan, right? I will pay taxes share from the part of the profit in my country?

They will not pay taxes on your behalf. The company will pay their taxes on their profits. You will pay taxes in your country on your overseas income.

Huh? Unlike the national income tax, Juminzei is not progressive.

Huh? It is VERY MUCH progressive. The higher the salary, the more City tax you are paying. And yes, is on the same level as the Income Tax. Just look at your payslip. Income Tax, City/Resident Tax also Medical Insurance tax and Social Taxes all goes progressively up with the income.