The scope of taxation for non-permanent resident (NPR) taxpayers of Japan has increased effective January 1, 2017. Income from the sale of personal property located outside of Japan is in principle taxable in Japan even if the proceeds are not remitted into Japan.
The 2017 Japan Tax Reform Proposals were passed in the Diet into law on March 27, 2017 and provide an exemption on the issue of capital gains taxation for foreign-transacted securities sales by NPRs. However, the new rule on income from the sale of other personal property will still apply (this does not include real estate property located outside of Japan).
This Insight is an updated version of our December 2016 Insight that includes additional details that became available through the revised Japan income tax law enforcement orders and regulations.