No.12019 Filing of final tax returns for foreigners who receive salaries and wages from home country
I work for a U.S. corporation and I am an American resident under the U.S. law, but I will be transferred to a Japanese subsidiary from January 20 to September 20 this year. Is it necessary to pay taxes in Japan when my salaries and wages are paid from the parent company in the United States?
As you will be classified as non-resident under the Japanese income tax law, you will be obligated to pay the income tax and the special income tax for reconstruction for your Japanese source income.
Even if your salaries and wages will be paid from the parent company in your home country, they will be applicable to Japanese source income because you will work in Japan.
But your salaries and wages will be paid in your home country and the income tax and the special income tax for reconstruction will not be withheld in Japan.
In this case, you are required to submit the quasi-final tax return and pay the income tax and the special income tax for reconstruction calculated at the tax rate of 20.42% on the amount of your salaries and wages before leaving Japan.
- Consultation service for national tax is available at the Phone Consultation Center of the Regional Taxation Bureaus. Please take a look at "IF YOU NEED FURTHER INFORMATION, PLEASE CONTACT" and try the phone consultation service.
