December 31 Checklist for Overseas Accounts: Japan's Foreign Asset Report
Are you a resident of Japan with over ¥50 million of overseas assets on December 31? Then you generally must file a Foreign Asset Report (kokugai zaisan chosho) by June 30 of the next year. For 2026, that is June 30, 2027. Non-permanent residents (a tax status, not a visa) are excluded from this report, but not from the separate Report of Assets and Liabilities. Record your balances, prices and exchange rates for December 31.
Who must file? It depends on December 31
The test uses your tax status and your assets on December 31. You are a resident if your domicile, the center of your life, is in Japan. You are also a resident after a year or more of living here without a break.
A non-permanent resident is a resident without Japanese nationality who lived in Japan for five years or less in the past ten. This is a tax status, separate from permanent residency as a visa. See your tax status in Japan.
| Foreign Asset Report | Report of Assets and Liabilities (zaisan saimu chosho) | |
|---|---|---|
| Non-permanent residents | Excluded | Not excluded |
| Test on December 31 | Overseas assets over ¥50 million | Income over ¥20 million with assets of ¥300 million or more, or securities and similar assets of ¥100 million or more. Or residents with assets of ¥1 billion or more. |
| Due date | June 30 of the next year | June 30 of the next year |
The income test excludes retirement income and applies to people who must file a return or can file certain refund returns. Asset values are not reduced by debts. The National Tax Agency (NTA) English guide calls the first report the "Report of Foreign Assets".
Your first year needs care. Sara is not a Japanese national. She first arrived on April 1, 2022 and has lived here since. She stops being a non-permanent resident in early April 2027, after five years here. Her first test is December 31, 2027. If she is over ¥50 million then, her report is due June 30, 2028.
Which assets count as overseas?
For deposits and for shares held in an account, the office that holds the account decides, not the currency or the company. Foreign company shares held outside any account count as overseas assets.
Overseas assets
- Deposits at a bank office outside Japan
- Shares in an account outside Japan, including Japanese shares
- Land and buildings outside Japan
Not overseas assets
- Foreign currency deposits at a bank office in Japan
- Foreign shares in an account in Japan
- For a resident, crypto on an overseas exchange
You cannot subtract a loan from an asset's value. The NTA FAQ also covers stock options, RSU rights, foreign life insurance and a defined contribution pension joined abroad. Options that cannot be exercised on December 31 are not listed.
What to record on December 31
Record a value and an exchange rate for each overseas asset.
| Item | What to record |
|---|---|
| Bank deposits | The December 31 balance. For a time deposit that has not matured, the original principal is also accepted. |
| Listed shares | The last price on December 31, or the closest earlier price |
| Land and buildings | An appraisal, the tax base of a foreign property tax, or another reasonable estimate |
| Exchange rate | Your bank's last buying rate (TTB) or a similar rate on December 31, or the closest earlier rate |
You hold $150,000 in deposits and $195,000 in shares, $345,000 in total. At ¥145, that is ¥50,025,000, over the line. At ¥144, it is ¥49,680,000, under the line. This is only an estimate, based on these assumptions: the rates are made up, and you hold no other overseas assets.
Your tax return uses different figures
The report is a year-end snapshot, while your final tax return (kakutei shinkoku) uses the whole year's income.
- Deposit interest paid abroad is taxed together with your other income.
- Dividends count before any foreign tax is taken off.
- Interest and dividends generally convert at the mid rate (TTM) on the date you record them.
- Foreign tax may be credited, but you must attach documents that prove it.
A non-permanent resident is generally taxed on foreign source income only if it is paid in or sent to Japan. Stock sales can be different. If you sold overseas property, see this guide.
Filing on time can change a penalty
Filing the report on time can lower a penalty, and skipping it can raise one. This applies when income from overseas assets was underreported. Say the tax base for the penalty is ¥1,000,000:
- Filed on time, asset listed: ¥50,000 is taken off the penalty.
- Not filed, asset missing, or key details incomplete: ¥50,000 is added.
- Requested records not provided by the set date: the ¥50,000 reduction is lost, and the ¥50,000 addition becomes ¥100,000.
This is only an estimate, based on the assumptions shown. Results vary by case.
Criminal penalties also exist: up to one year in prison or a fine of up to ¥500,000. They cover a false report, and not filing on time without a good reason.
Common mistakes
- Sorting shares by company, not by account. Check where each account sits.
- Using a rate from another date. The report uses December 31.
- Subtracting a property loan. You may then miss the ¥50 million test.
- Leaving out income because tax was withheld abroad. Foreign tax does not remove it from Japanese tax.
What you can do yourself, and where you need help
You can do these four tasks yourself at year-end.
- List each overseas account and asset with its country, institution and branch.
- Record December 31 balances and prices, and your bank's TTB.
- Save the year's interest, dividend and trade statements, and foreign tax documents.
- Find purchase contracts and cost records.
Valuing property, the foreign tax credit and your tax status depend on your facts. If you plan to leave Japan, see the exit tax guide.
What changes when a tax accountant handles it
We use one set of records for both your return and your report. What we do:
- Build your asset list, and decide which items are overseas assets.
- Check December 31 values and rates, and whether you must file.
- Convert the year's income to yen, and prepare the foreign tax credit statement.
- Prepare your return and report, send an English summary, and file after you approve it.
We work with individuals only, on Japanese tax only, with no calls. The report is ¥52,500 (¥57,750 including tax), added to your return. Our minimum fee is ¥97,500 (¥107,250 including tax).
Frequently asked questions
Do foreign shares in a Japanese brokerage account go on the report?
No. Shares held in an account are located where the account office is. Foreign shares in an account at an office in Japan are not overseas assets. Japanese shares in an overseas account are.
Which exchange rate do I use?
Use your bank's last buying rate (TTB) or a similar rate on December 31. If there is no rate that day, use the closest earlier rate. For a deposit, use the rate of the bank that holds it.
I am a non-permanent resident. Can I ignore all of this?
No. If you have this status on December 31, you do not file the Foreign Asset Report for that year. You can still need the Report of Assets and Liabilities, and your income rules still apply.
What if I miss the June 30 deadline?
File as soon as you can. For the penalty rule, a late report counts as on time if you file before any audit notice from the tax office (zeimusho). You must also not have expected a correction from an audit. For a late filing, a criminal penalty can be waived depending on the circumstances.
Have overseas assets to report for 2026?
Yuma Komatsu is a Japanese CPA and licensed tax accountant. We prepare, sign and file your return. We work by email in written English. Our tax accountant does not speak English, and we do not offer calls.
Sources
- NTA, 2025 Income Tax and Special Income Tax for Reconstruction Guide (English)
- NTA, No.12017 Conversion of foreign currency transactions into yen (English)
- NTA, No.12007 Foreign tax credit for residents (English)
- NTA Tax Answer No.7456, Duty to file the Report of Foreign Assets (Japanese)
- NTA Tax Answer No.7457, Duty to file the Report of Assets and Liabilities (Japanese)
- NTA, Report of Foreign Assets FAQ, August 2026, questions 1, 2, 11, 12, 18 to 24, 29 to 31, 36, 39, 40, 51 and 52 (Japanese)
- NTA, Report of Assets and Liabilities FAQ, August 2026, question 2 (Japanese)
- NTA Tax Answer No.1330, Dividend income (Japanese)
- NTA Tax Answer No.1240, Foreign tax credit for residents (Japanese)
- NTA Tax Answer No.2010, Who is taxed (Japanese)
- Income Tax Basic Circular 2-3 to 2-4-3, Counting residence periods (Japanese)
- Income Tax Basic Circular 57-3-2, Yen conversion (Japanese)
- Act on Submission of Statement of Overseas Wire Transfers, Articles 5, 6, 6-2 and 10 (Japanese)
- Income Tax Act, Articles 2, 7 and 95 (Japanese)
This article is general information based on rules in force as of November 6, 2026. It is not advice for your situation.