Frequently Asked Questions

【Koshida Accounting Firm Column Date:

What income is taxable in Japan for residents and non-residents?

The scope of taxable income in Japan depends largely on your Japanese tax residency status.

A non-resident is generally subject to Japanese tax on Japan-source income. A resident classified as a non-permanent resident may be subject to special rules for certain foreign-source income, including Japan’s remittance-based taxation rules. Other residents are generally subject to Japanese tax on worldwide income.

What Should You Be Careful About Regarding Taxation When a Non-Resident Becomes a Non-Permanent Resident in Japan?