Tuesday, August 25, 2009

There's a tax treaty; now what?

I am thankful (very thankful) for the legislators and diplomats who enacted a tax treaty between my two countries.

But I would like my very own legislator or diplomat or tax attorney or CPA to take care of implementing it in my life. :-)

When I am in the USA, I owe taxes in the USA. When I am in Japan, I owe taxes in Japan. And, apparently, when in either country, I need to file in both countries. Maybe. Perhaps. I'm not sure. It depends on whom you ask.

But, when I leave Japan, if I just stop paying my quarterly tax payments, how will the Japanese version of the IRS know if I am breaking the law or if I left the country???

And what if I leave Japan mid-fiscal year (as I did)? The fact that the tax year for both countries runs January to December is very helpful. The fact that taxes are to be filed in Japan by March 15th and in the USA by April 15th is a little more confusing.

Hopefully my two visits to the tax office and one visit to city hall before I left Japan will suffice.

(Holds breath, waiting to see.)

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