If you hold bank accounts, shares, property or insurance abroad, you may need to file an "overseas asset report" (kokugai zaisan chosho) in addition to your tax return. We help you check whether you must file and how to value your assets.
We can help if you
- have overseas accounts, investments and property that may total more than 50 million yen
- have lived in Japan for nearly five years and will soon need to file
- have realized you should have filed in past years
- are not sure how to value overseas insurance or pensions
Who must file
Residents whose overseas assets total more than 50 million yen on December 31 must file.
- Non-permanent residents do not need to file. The obligation starts from the year you become a permanent resident for tax purposes (after more than five years in Japan).
- Non-residents do not need to file.
- The 50 million yen test uses the total value of assets before deducting loans.
Deadline
The report is due by June 30 of the following year (from the 2023 report onwards; previously March 15). Note that this is different from the income tax return deadline of March 15.
Valuation
- Assets are generally valued at market value on December 31. Reasonable estimates are also allowed.
- Foreign currency assets are converted into yen at the exchange rate on December 31.
- Overseas life insurance and pensions are valued using the surrender value or similar amounts.
What happens if you do not file
If you file the report on time, penalties on any underreported income from those assets are reduced by 5%. If you do not file, or leave assets out, the penalties are increased by 5%. Failure to file without good reason can also lead to criminal penalties.
International transfers over 1 million yen are reported to the tax office by banks, and information on overseas accounts is exchanged between tax authorities (CRS). We recommend dealing with any gaps as soon as you notice them.
How we help
- Check the filing obligationWe confirm your residence period and the total value of your assets.
- List your assetsUsing your statements, we organize each asset by type, country, quantity and value.
- Prepare and fileWe prepare the report and file it via e-Tax, and check that income from those assets (interest, dividends, rent, gains) has been reported.
FAQ
How are joint accounts with my spouse treated?
Each of you reports your own share. If the shares are unclear, they are judged by factors such as who provided the funds.
I did not file in past years. What should I do?
You can still file late. If income was underreported, amended or late returns are filed at the same time. Correcting it yourself before the tax office contacts you generally results in lower penalties.
This page provides general information only. The actual treatment depends on your individual circumstances. Please consult a professional before making decisions.