Income tax for Foreinegrs
Income tax for Foreigners
Payroll (Expatiate: Salary paid outside Japan, Fringe benefits）
（There comes German Expatriate from the German parent company. The different
procedures for payroll from Japanese staff are as follows.)
Basically monthly payroll procedures are same as Japan staff. There would
be difference in case Expatriate receives salary paid outside Japan and/or
fringe benefits etc.
①Company house (including electricity and water) is provided by a company
without any charge to staff.
Individual tax and/or social insurance etc are born by the company.
→Company burden are recognised as fringe nenfit and salary gross up is
necessary for caluculating monthly withholding trax under the PAYE (Pay
as you earn) sytem.
②Expatriate comes from a country which has a pension treaty with Japan.
→After a certain application is made, double pension payment burnden can
③Some salary is paid outside Japan.
→Salary for work in Japan is treated as taxable income due to Japan source
Salary paid outside Japan is outside the scope of monthly PAYE, but this
is settled through the annual tax return filing.
Individual tax return filing - self assessment - for Feigners (First year
come to Japan, annual return filing, departure from Japan)+ Tax administrator
（Tax return for Expatiate - Fisst year come to Japan, annal tax raturn
filing and depertue from Japan)
First year come to Japan:
A person who has intention to live in Japan more than one year is categorised
as Resident (Non Permanent Resident) from the first day when enter into
Japan, even though a working VISA is not issued yet.
Departure from Japan:
When expatriate returns to home country for good, tax burden should be
settled through Year End Adjustment or individual tax return filing by
the day of departure from Japan. If tax administrator is assigned the tax
rerun filing due date is extend until 15th March next year.
InIn case some payments relating to working in Japan (Bonus, resignation
payment etc) after departure from Japan, 20% of withholding tax should
be applied as Non-Resident.
If payments relating to working in Japan are made outside
Japan, tax settlement should be made through a tax return filing. Tax burden
would be same as 20% of gross payments.
Income Tax Guide for Foreigners.（National Tax Agency Web-site）
（Income Tax Guide for Foreingers）