International Tax & Treaties

Japanese savings-type life insurance policies are treated as complex ‘financial assets’ under U.S. tax law, subject to FBAR, FATCA (Form 8938), and especially PFIC (Form 8621) rules. U.S. citizens and Green Card holders with cash-value policies in Japan must fulfill these annual reporting obligations. This article thoroughly explains the details and the critical discrepancies in U.S. vs. Japan taxation timing.

Introduction The U.S.-Japan Tax Treaty is a powerful instrument for many individuals, often granting exemptions from federal income tax for

Navigating the complexities of U.S. tax law can be daunting for F (student) and J (exchange visitor) visa holders. A prevalent source of confusion arises from misunderstanding the distinction between the exemption period for the Substantial Presence Test (SPT), which determines your tax residency status as an “Exempt Individual,” and the benefits of tax treaties (specifically Article 20, Student & Trainee Treaties) that exempt certain income from U.S. taxation. This comprehensive guide aims to clarify these distinct concepts, provide a thorough understanding of your U.S. tax obligations, and underscore the critical importance of filing Form 8843.

Introduction In today’s increasingly globalized world, high-net-worth individuals considering international relocation or repatriation face a critical challenge: understanding and navigating

Introduction For many Japanese expatriates who have worked in Japan and subsequently moved to the United States, receiving a “Lump-Sum

Introduction A U.S. permanent resident card, commonly known as a Green Card, serves as a cornerstone for many individuals living

For US residents, Japan’s NISA and iDeCo, despite their “tax-exempt” designation, can become significant tax traps accompanied by substantial tax risks and complex filing obligations. Particularly when holding mutual funds or foreign-domiciled ETFs, the PFIC (Passive Foreign Investment Company) rules apply, and the punitive taxation and high interest charges can devastate investment returns. The US-Japan Tax Treaty does not protect investors from this issue. This article provides a comprehensive explanation of the tax treatment of NISA and iDeCo for US residents, delves into the PFIC problem, and clarifies the limitations of the US-Japan Tax Treaty.

Applying for an ITIN (Individual Taxpayer Identification Number): A Comprehensive Guide for Spouses and Dependents Ineligible for an SSN –

For U.S. citizens and residents earning income in Japan, understanding whether to use the Foreign Earned Income Exclusion (FEIE) or the Foreign Tax Credit (FTC) is crucial for avoiding double taxation. This article details the pros, cons, and selection criteria for each method.