Taxes
Japan — Tax: Tax Residency Rules
Japan classifies tax residents who are not Japanese nationals and have lived in Japan for five years or less within the preceding ten years as non-permanent residents, who are taxed on a narrower base than permanent residents.
VerifiedGovernment / official sourceNational Tax Agency of Japan — Income Tax Guide (English)Last reviewed: 2026-10-23
Key facts
- A non-permanent resident is a resident of non-Japanese nationality with a domicile or residence in Japan for an aggregate of five years or less within the preceding ten years.
- Non-permanent residents are taxed on income other than foreign-source income, on foreign-source income paid in Japan, and on foreign-source income paid abroad that is remitted to Japan.
- The remitted amount for a year is the part of funds received from abroad that exceeds the non-foreign-source income paid abroad in that year.
- In the National Tax Agency worked example, a remittance is first treated as coming from non-foreign-source income paid abroad; only the excess counts as remitted foreign-source income.
Common mistakes
- Assuming all foreign income stays untaxed: foreign-source income paid in Japan is taxable, and so is foreign-source income paid abroad once remitted to Japan.