Taxation of international executives
Are there special residency considerations for short-term assignments?
Are there special payroll considerations for short-term assignments?
What income will be taxed during short-term assignments?
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:
A global survey of income tax, social security tax rates and tax legislation impacting expatriate employees.
All information contained in this publication is summarized by KPMG Tax Corporation, the Japan member firm affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity, based on the Japanese Individual Income Tax Law, the Enforcement Cabinet Order of the Individual Income Tax Law, and the Basic Administrative Ruling of the Individual Income Tax Law as of 31 July 2020.
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