Tax Representative Service for Non-residents & Individual Income Tax Return Filing
What Is A Tax Representative?
A tax representative is a person who files individual income tax, inheritance tax, or gift tax on behalf of people who have obligations to pay tax but do not reside in Japan.
For instance, a tax representative prepares individual income tax returns, pay tax or receive tax refund based on the notification from tax authorities.
A tax representative can be an individual or a company as long as they have a Japanese address.
We Gaia Tax Corporation, as a tax representative, have provided services for many non-residents (foreigners) and are greatly appreciative that we have been recognized by our clients.
In the case of appointing a tax representative and submitting an application for tax representative, the filing period is from the next February 16 to March 15.
When Do You Need A Tax Representative?
（1）When you own real estate in Japan
The rent revenue generated from rental properties located in Japan is consider as domestic source income, which is required to be filed by law.
（2）
When the real estate property is used as a residence for you or your family If you have no rental income, you are no obligation to file return. However, nonresident who does not currently reside in the place for tax payment, the nonresident has to appoint a tax agent.
（3）When you sell the real estate property mentioned in (1) and (2)
（4）When you inherit or pass on the real estate property mentioned in (1) and (2)
What Is Domestic Source Income?
Source means the source of income. In Japan, the taxpayers have the obligations to file source income. Thus, a tax representative is needed.
In the event that a Japanese business person is transferred to an oversea branch for more than one year, then he is considered as a non-resident because he is presumed to have no Japanese address. However, since the source of his income is from working overseas, his income does not belong to the category of domestic source income. Yet, if he owns real estate such as his residence in Japan, then he will still need a tax representative.
In addition, the domestic income revenue by the time he leaves Japan, or the rental revenue generated from rental properties located in Japan and the revenue generated from asset transfer occurring in Japan after he leaves Japan, all of above is required to be filed in Japan.
Procedure to Appoint A Tax Representative
We provide comprehensive tax services from preparing and submitting filing documentation to pay tax.
(1) For Individual Income Tax
Submit a “Written Notification for Tax Representative for Individual Income Tax and Consumption Tax” to tax authority.
(2)For Property Tax and Real Estate Acquisition Tax
Submit a “Declaration for Tax Representative” to municipalities where the property is located in. (Submit to the metropolitan tax offices if the property is located in the Tokyo-23-ward areas)
