A trip to Japan in the time of COVID-19

Yuriko and I traveled to Japan as this pandemic was breaking out from February 26th and returned March 5th. Ten days ago, we completed two weeks of self-quarantine after our return, we’re doing well. None of us are sick.

The State Dept warning for Japan was level 1 and moved to 2 the day before we left. It was an interesting time to visit, but I needed to complete my 2019 Japanese taxes by March 15, so the timing was set back in January. It was a bizarre experience. People thought we were crazy to go into the danger of Japan before we left. But, while we were there, our hometown of Kirkland, WA because the epicenter of COVID-19 death in the US. We felt we were going into danger returning home.

We saw Seattle’s and then the US' future. Schools closed while we were there. Gatherings of people, shows, sports events, etc. closed or reduced hours.  Everyone wore masks. TP, hand cleaner, and masks were sold out due to hoarding. Still people met us for dinner and coffee. My favorite restaurants were open. Tourist sites were very light and there were no Chinese or Korean visitors.

The tax posting deadline was postponed be a month while we were there. But, I got it done on Friday, February 28th. The Japanese system is amazing - far superior to the corrupt and immoral US system. Compliance is easy and comprehensive since your taxes are paid by your source of income. The taxes are simple without all the loopholes and complexity that require the US to just withhold and have mandatory returns submitted.

If you do have special circumstances, you submit an optional adjustment form. I receive performance stock in the US and support my kids in the US, so I must submit an adjustment. You can submit it online. The form is just a page or two.

But, it’s hard for me to complete who has never done it before and it’s all in Japanese. Last year Microsoft hired KPMG for me. But, they quoted me $4000 to do it for me this year. For less than that money Yuriko and I both traveled to Japan, stayed in hotels and with family. We enjoyed a week together in Tokyo and Yokohama.

The most amazing thing to me is that the government helps everyone to pay their taxes. There was a large floor of long tables organized into a series of sections. On one side of the tables were standing stations where volunteers (wearing masks) reviewed your tax documents, evidence and calculations with you. They help four people at a time. Once you have the right results and forms to fill, you can either move to the handwritten form or computer online entry section. They have printers and carbon copies available so you can leave with a copy in your hands. Finally, they have a bank of drop off boxes based on where you live. The floor can handle hundreds at a time. People flowed through the system with little waiting and quickly.

There’s nothing like it in the US. Monied interests have so many tax loopholes and subsidies that our tax laws are incredibly complex. It’s impossible to find out what the law is without being wealthy enough to hire an accountant, tax attorney or buy a software package. How could there possibly be banks of trusted, competent volunteers to help us?

Fortunately for me, due to the deadline postponement, there was much excess capacity. The volunteer who helped me was patient, smart, knowledgeable and kind. I think he was impressed with my preparation and efforts to speak Japanese and communicate interesting concepts such as grant date, vesting date, days in Japan, capital gain vs income, etc. At the end, I was the only one at his table and instead of passing me on to the next stage, he offered to quickly fill out the relevant forms.

That’s so much like the rest of my experience in Japan. It’s a culture of kindness and consideration. There are also many negative aspects to the culture. But, in interactions with the Japanese city and national government, they help you learn and follow the rules. It’s a stark contrast with the hostility, ignorance and lack of accountability I’ve experienced in the US and in particular with the INS in the 1980s.

I thought you might be entertained by my recent unique, experience. Be well!