Residency rulesPayroll considerationsTaxable incomeAdditional considerations
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.