Here are answers to questions we are often asked. The actual tax treatment depends on your situation, so please contact us for advice on your own case.
Non-permanent residents and residency
What is a non-permanent resident?
A foreign national living in Japan who has lived in Japan for a total of five years or less during the past ten years. Your visa type does not matter. Non-permanent residents are taxed on overseas income only to the extent it is remitted to Japan, among other things. See Non-permanent residents and remittance taxation.
From which year is all of my overseas income taxed in Japan?
From the day your total time living in Japan during the past ten years exceeds five years. If you lived in Japan before, that period also counts, so the change can come earlier than five years after your arrival.
Is there tax when I transfer money from an overseas account to Japan?
Transferring money is not taxed in itself. However, if you are a non-permanent resident with overseas income in that year, the income may be taxed up to the amount remitted. Spending in Japan with an overseas credit card may also count as a remittance.
If I arrive in or leave Japan during the year, am I a resident?
You become a resident from the day you have an address (domicile) in Japan, which is judged by where the center of your life is, such as work, family and home. If you come to work in Japan for a year or more, you are generally presumed to be a resident from the day you arrive. See Resident or non-resident.
Overseas income and assets
I did not report some overseas income in past years. What should I do?
First, check for each year whether a return was required and how much income is taxable. Then file late or amended returns. Filing voluntarily before the tax office contacts you can reduce or remove penalty taxes. We recommend consulting early.
Who has to file the overseas assets report?
Residents whose overseas assets total more than 50 million yen at December 31 (non-permanent residents are excluded). The deadline is June 30 of the following year. Real estate can be valued at market value or an estimated value, so the total depends on the method. See Overseas assets report.
Can I deduct tax paid abroad from my Japanese tax?
If foreign tax was charged on income that is also taxed in Japan, you may be able to claim the foreign tax credit. The credit has an upper limit, and unused amounts can be carried forward for three years. See Foreign tax credit.
Gifts, remote work and leaving Japan
Is there Japanese gift tax if my parents abroad give me money?
If you live in Japan, a gift from parents abroad is in principle subject to Japanese gift tax. Some people who have only recently come to Japan may be exempt for gifts of overseas assets. There is a special exemption for funds used to buy a home. See International inheritance and gifts.
I live in Japan and work remotely for a company abroad. Where do I pay tax?
Salary is generally income of the country where the work is done, so work done in Japan is in principle taxed in Japan. If the company does not withhold Japanese tax, you file a tax return yourself. If the other country also taxes the salary, it is adjusted through the tax treaty or the foreign tax credit.
What tax procedures are needed when I leave Japan?
For income tax, you either file a return before you leave or appoint a tax agent (nozei kanrinin) to file the following year. Resident tax is charged by the city where you lived on January 1, so you also need to register a tax agent with the city to receive the bills after you leave.
Working with us
Can I consult in English?
Email and documents can be in English. Meetings are conducted in Japanese.
Can I use your services if I live outside Fukuoka?
Yes. International tax consultations are available by email and online meetings (Google Meet) from anywhere in Japan. See Pricing.
For other questions, please use the contact form. Examples of actual consultations are on our Case Studies page.