Japan: Updated FAQs on tax treatment of certain employee situations (COVID-19)

Japan: FAQs on tax treatment of employee situations

Japan’s National Tax Agency on 23 October 2020 updated a set of “frequently asked questions” (FAQs) concerning the tax return filing and tax payment procedures, and offered in response to the coronavirus (COVID-19) pandemic.

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The FAQs cover a variety of tax relief measures, and have been updated several times since being originally released in March 2020.

The most recent update adds new FAQs concerning the tax treatment for income tax purposes of certain situations arising because of the pandemic, including the following:

  • When an employee (a Japanese resident) is unable to depart from Japan
  • When an expatriated worker of a foreign parent company works overseas, engaged in the business of the Japanese company
  • When an employee (a Japanese resident) who originally departs from Japan for a temporary business trip but does not return to Japan and works overseas, engaged in the business of the Japanese entity
  • When an employee (a non-Japanese resident) who is seconded to a foreign company returns temporarily to Japan

Read an October 2020 report [PDF 276 KB] prepared by the KPMG member firm in Japan

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