Japan - Special considerations for short-term assignments 

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than one year.

Residency rules

Are there special residency considerations for short-term assignments?

Not applicable.

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Payroll considerations

Are there special payroll considerations for short-term assignments?

Not applicable.

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Taxable income

What income will be taxed during short-term assignments?

Japanese-sourced income.

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Additional considerations

Are there any additional considerations that should be considered before initiating a short-term assignment in Japan?

Generally, Japan's double tax treaties are in line with the OECD Model Treaty with respect to the tax-exempt treatment of foreign employees temporarily working in Japan. Such employees are generally tax exempt if they fulfill the following three criteria:

• they are present in Japan for not more than 183 days in any 12-month period commencing or ending the fiscal year concerned
• their salary is paid by a non-resident employer
• none of the salary is borne by a permanent establishment in Japan.

© 2012 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.