Taxation of international executives
Individual income taxes in Japan consist of a national income tax and a local inhabitant tax. Japan also imposes gift and inheritance taxes. A Japanese permanent resident is taxed on worldwide income with reference to progressive tax rates. A non-permanent resident is taxed on the greater of Japanese-source income or the amount paid in and/or remitted to Japan. Foreign tax credits are available for taxpayers. Japan has tax treaties with many countries. Japan has a floating exchange rate so that the value of the Japanese Yen varies with market forces.
The official Japanese currency is the Japanese Yen (JPY).
Herein, the host country refers to the country to which the employee is assigned. The home country refers to the country where the assignee lives when he/she is not on assignment.
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