Japanese government has introduced exit tax in July first 2016. Exit tax is a system to lay tax on unrealized gain included in such as securities in case that those of who go abroad with the fixed properties estimated over 100 million yen. Originally, capital gains such as securities will not generate tax unless you're going to sell them but this system says going abroad with those securities estimated over 100 million yen is considered as transferring those properties so you need to burden capital gain tax when you get out of Japan if you are Japanese.
For that reason, if people living in Japan transfer stocks, taxing on transferring is no problem but they move out of Japan authorities generally can't lay tax on them so it is said that there are many rich Japanese people who move out of Japan and transact stocks in the countries whose tax rate is pretty much lower than Japan's
If you look around the world, you can find countries which allows to transfer stocks with tax free. Typical example is Hong Kong so if you move to Hongkong to transfer stocks therefore no tax will be laid on you from HongKong and also Japan.
Exit tax is explained which is necessary tax system to avoid those easy tax avoidance from rich class.
If you sell stocks you can naturally gain a profit. However exit tax will be laid on even unless there is a fact you sold stocks unreasonably. In short once you burden tax, once you are burdened exit tax the bad situation of no capacity to pay its tax obligations will be assumed.
At this point. authorities plans to add new rule to consider tax payment grace period depending on solvency of its tax obligation.
Authorities seem to prepare compromise plan to return exit tax back if coming back to Japan within 5 years and fulfilling the prescribed requirements in principle.
What is exit tax?
Exit tax is said to be also introduced in France so this is major tax system in the world. Why this tax rule is made is because in principle transfer of stocks is able to be laid tax in the country where people live those of who transfer securities.For that reason, if people living in Japan transfer stocks, taxing on transferring is no problem but they move out of Japan authorities generally can't lay tax on them so it is said that there are many rich Japanese people who move out of Japan and transact stocks in the countries whose tax rate is pretty much lower than Japan's
If you look around the world, you can find countries which allows to transfer stocks with tax free. Typical example is Hong Kong so if you move to Hongkong to transfer stocks therefore no tax will be laid on you from HongKong and also Japan.
Exit tax is explained which is necessary tax system to avoid those easy tax avoidance from rich class.
Sell stocks for exit tax or give up emigration to another country
It is no doubt that exit tax will become heavy burden. Exit tax is kind of a system to force the facts there is even no transaction of stocks though to accept as the facts there is transaction of stocks at the point of moving out of Japan.If you sell stocks you can naturally gain a profit. However exit tax will be laid on even unless there is a fact you sold stocks unreasonably. In short once you burden tax, once you are burdened exit tax the bad situation of no capacity to pay its tax obligations will be assumed.
At this point. authorities plans to add new rule to consider tax payment grace period depending on solvency of its tax obligation.
This tax applies to not only emigration but temporary visit
For example even if you stay in a country for few years temporarily for business or something, exit tax will generate. You need to think it very carefully because it is nonsense for you to pay exit tax although you come back to Japan.Authorities seem to prepare compromise plan to return exit tax back if coming back to Japan within 5 years and fulfilling the prescribed requirements in principle.