The Calculation of ‘The Amount Remitted to Japan’ Included in the Taxable Income of Non-Permanent Residents in Japan

Hi, my name is Taisei Koshida, and I am a certified public accountant and tax accountant.

I aim to assist non-Japanese business owners who need help with reading or writing in Japanese. If you find the Japanese tax return system challenging, I can help you with your tax filings.

If you are a non-permanent resident of Japan, you might find this blog helpful.

Example

① Domestic income paid in Japan: 400

② Domestic income paid outside of Japan: 200

③ Overseas income paid in Japan: 100

④ Overseas income paid outside of Japan: 50

⑤ Actual remittance to Japan: 120

Taxable Income

The taxable income of non-permanent residents in Japan consists of domestic income (①+②), overseas income paid in Japan (③), plus remittance. However, the remittance added is not the actual remittance (⑤).

Calculation of the amount remitted to Japan

Initially, consider that the overseas income paid in Japan (③) was remitted. Then, the amount obtained by deducting (③) from the actual remittance (⑤), which is 120-100=20, is added to the taxable income as the amount remitted to Japan.

Taxable income
① 400 + ② 200 + ③ 100 + 20 = 720

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