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Japan - Special considerations for short-term assignments

Tax TIES: Japan - Short-term assignments

Taxation of international executives


Related content

Residency rules
Payroll considerations
Taxable income
Additional considerations

For the purposes of this publication, a short-term assignment is defined as an assignment that lasts for less than 1 year.

Residency rules

Are there special residency considerations for short-term assignments?

Not applicable.

Payroll considerations

Are there special payroll considerations for short-term assignments?

Not applicable.

Taxable income

What income will be taxed during short-term assignments?

Japanese-sourced income.

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.


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.


© 2020 KPMG Tax Corporation, a tax corporation incorporated under the Japanese CPTA Law and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

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