You work hard for every yen in Japan—so when you hit “send” on a transfer to Kathmandu, Kochi, Colombo, Chittagong or Cebu, the last thing you want is an unexpected knock from the tax office or a chunk of your money lost to double taxation.
This guide walks you through exactly what Japan’s National Tax Agency (NTA) expects from foreign residents remitting to Nepal, India, Sri Lanka, Bangladesh and the Philippines in 2026, how to stay compliant, and how to pick the cheapest legal route among Wise, SmileRemit, JpRemit, BrastelRemit, CityRemit, JapanRemit and KyodaiRemit.
1. Do I Owe Japanese Tax When I Send Money Home?
Short answer: Usually NO—but you must prove it.
Japan taxes worldwide income for tax residents, yet gifts or family-support remittances are not income. The NTA will still ask:
- Was the money already taxed as salary in Japan?
- Can you show bank statements or payslips proving the source?
- Is the amount “reasonable” living-expense support (≤ ¥1.5–3 m per year per dependant) rather than hidden business profit?
Keep three years of:
- Gensen-chōshū-hyō (源泉徴収票) – your annual withholding slip.
- Transfer receipts from Wise, SmileRemit, JpRemit, etc.
- Family registration or school certificates showing dependants.
If you ever file a “Kakutei Shinkoku” blue-form return, attach a “Foreign Remittance Schedule” (国外送金明細書) listing date, amount, purpose and recipient.
2. The ＜贈与税＞ Gift-Tax Trap: When Support Looks Like a Gift
Japan’s gift-tax threshold is only ¥1.1 million per calendar year (2026 rate). Send ¥2 million in one go to build a house in Kerala or Davao and—on paper—you owe 10–50 % gift tax even if you’re supporting parents.
Safe structures:
- Split large amounts across calendar years (Dec + Jan).
- Label the purpose “daily living support” not “property purchase”.
- Use regular monthly transfers (¥80–100 k) instead of one lump-sum.
All seven providers let you set automatic monthly transfers; Wise and SmileRemit have the lowest fees under ¥100 k.
3. Double-Taxation Agreements (DTA): Relief at a Glance
Japan has DTAs with India, Bangladesh and the Philippines—NOT with Nepal or Sri Lanka (2026).
What that means for you:
| Country | DTA? | You Can Claim… | Keep This Document |
|---|---|---|---|
| India | YES | Credit for Indian bank interest TDS | Form 15CA/15CB + BDT receipt |
| Bangladesh | YES | Reduced 10 % withholding on dividend | “Tax Residence Certificate” from city office |
| Philippines | YES | Exemption on small gifts (≤ ₱250 k) | BIR Form 1904 + JPN TRC |
| Nepal | NO | No treaty relief | – |
| Sri Lanka | NO | No treaty relief | – |
Pro tip: Ask your provider for a “Transfer Certificate” (送金証明書). Wise e-mails it automatically; BrastelRemit and Kyodai issue it on request—free.
4. How the NTA Tracks Your Remittance
Since October 2023 banks must auto-report any outward transfer > ¥1 million to the NTA’s “Zengin-Net”. Smaller amounts are still visible if the bank is audited.
Red-flag patterns:
- 10+ transfers/month to the same NPR/INR/LKR/BDT/PHP account.
- Amounts exactly ¥999,999 (obvious splitting).
- Transfers immediately after large cash deposits (looks like untaxed side-income).
Use one main remittance company so your annual statement is easy to print. CityRemit and JapanRemit send a “Nenji Keisan Sho” each January—handy for tax time.
5. Step-by-Step: Document a 100 % Tax-Free Remittance
Let’s say you send ¥200 k/month (¥2.4 m/year) to your mother in Kathmandu via JpRemit.
-
Before first transfer
- Scan your latest gensen slip (¥4.2 m salary, ¥380 k tax withheld).
- Note mother’s citizenship, address, age—NTA likes “elderly dependant”.
-
Each month
- Transfer exactly ¥200 k; purpose field: “family maintenance”.
- Download PDF receipt from JpRemit portal (keeps mid-market JPY→NPR rate).
-
Year-end
- Total ¥2.4 m < 50 % of your net salary—well within “support” range.
- Store PDFs in a folder “2026_Remittance_Nepal”.
- No gift-tax form required (≤ ¥1.1 m rule applies per recipient, but you’re below).
-
If NTA enquires
- Hand over the folder + gensen = case closed in 15 min.
6. Comparing Providers: Hidden Fees That Feel Like a “Tax”
Even if Japan doesn’t tax you, bad FX spreads can cost 2–5 %—like a stealth tax.
Below is a live snapshot (12 Feb 2026, 11:00 JST) for ¥100 k → INR (mid-market 1 JPY = 0.612 INR):
| Provider | Up-front Fee | FX Margin | Total Cost | Net INR Received |
|---|---|---|---|---|
| Wise | ¥217 | 0.01 % | ¥217 | ₹61,050 |
| SmileRemit | ¥0 | 0.55 % | ¥550 | ₹60,780 |
| JpRemit | ¥499 | 0.40 % | ¥899 | ₹60,550 |
| BrastelRemit | ¥400 | 0.65 % | ¥1,050 | ₹60,420 |
| CityRemit | ¥300 | 0.70 % | ¥1,000 | ₹60,390 |
| JapanRemit | ¥0 | 0.90 % | ¥900 | ₹60,240 |
| KyodaiRemit | ¥500 | 0.60 % | ¥1,100 | ₹60,360 |
Key takeaway: Wise is cheapest for small, frequent transfers; SmileRemit wins on zero-fee days (every Friday until 28 Feb 2026).
7. Special Cases: Business, Property & Education Remittances
Sending University Fees to Manila (PHP)
- DTA benefit: No Philippine withholding on education-related transfers ≤ ₱700 k/year.
- Document: School invoice + Wise receipt.
- Tip: Use Wise’s “Business” profile so the purpose reads “education”—NTA rarely questions it.
Buying a Flat in Dhaka (BDT)
- Large amount: ¥5 m+.
- Gift-tax risk: Split into two calendar years (Dec 2026 & Jan 2027).
- Provider: CityRemit offers locked BDT rate for 48 h—protects you if Bangladesh Bank intervenes.
Supporting a Medical Emergency in Colombo (LKR)
- Sri Lanka has no DTA; still no Japan tax if you can show hospital invoice.
- Speed: KyodaiRemit delivers to NDB Bank within 30 min—useful for urgent surgery deposits.
8. Checklist: 5 Minutes Now Can Save ¥500 k Later
☐ Download last year’s gensen-chōshū-hyō
☐ Pick one main provider (Wise for cost, SmileRemit for promos)
☐ Set monthly instead of lump-sum transfers
☐ Save PDF receipts in cloud folder named “2026_Tax_Proof”
☐ If amount > ¥1.1 m/year to one person, split calendar year or file gift-tax return
9. Common Myths—Busted
Myth 1: “Cash remittance at 7-Eleven is invisible.”
Fact: ATM networks still log your MyNumber; NTA can subpoena.
Myth 2: “Under ¥1 million never gets checked.”
Fact: Pattern triggers matter more than amount; 50 × ¥99 k transfers will flag.
Myth 3: “Philippines charges 12 % VAT on remittance.”
Fact: The receiver pays 0 % VAT on family support; only banks may debit ₱150–₱250 service fee—not a tax.
10. Next Step: Compare Before You Send
Tax-wise, you’re now bullet-proof.
Fee-wise, rates change every 90 minutes.
RatesRemit's Comparison Tool pulls live spreads for JPY→NPR, INR, LKR, BDT, PHP from Wise, SmileRemit, JpRemit, BrastelRemit, CityRemit, JapanRemit and Kyodai—so you keep more of your money than any bank or static calculator shows.
Send smarter, stay compliant, and make every yen count for the people who count on you.