1. Who must pay Japanese taxes
(1-1) Income Tax
Even though you live in the United States, you
are obligated to pay Japanese income tax on your
income from sources within Japan. The following
items are only some of the examples which are
treated as income from sources within Japan.
(a) Salaries, wages, or other remuneration
received for employment and other personal
services performed in Japan
(b) Rent or other compensation for the use or
lease of real estate located in Japan
(c) Income from sale or disposal of lands and
buildings situated in Japan
(d) Dividends received from Japanese domestic
companies
In some cases, a payer who pays your income
withholds your Japanese income tax and you do
not need to file a tax return yourself. But in
other cases, you need to file your return to a
tax office and pay Japanese taxes yourself.
(1-2) Inheritance Tax and Gift Tax
Even though you live in the United States, you
are obligated to pay Japanese inheritance tax or
gift tax if you acquire any property located in
Japan by inheritance, bequest or gift. The
following items are only some of the examples
which are treated as property located in Japan.
(a) Real estate located in Japan
(b) Deposits in a Japanese domestic bank
(c) Stocks issued by a Japanese domestic company
(d) Japanese Government Bonds (JGBs)
In order to pay Japanese inheritance tax or gift
tax, you yourself need to file a tax return to a
tax office in Japan.
(1-3) Credit for foreign taxes
If you are a U.S. resident who has income from
sources within Japan, such income may be taxed
by both the Japanese Government and the United
States Government. This may also happen if you
are a U.S. resident who acquires any property
located in Japan by inheritance, bequest or
gift.
In order to avoid such international double
taxation, Japan and the United States have
introduced the system of foreign tax credit.
This system allows you to credit your foreign
taxes entirely or partly when you file a tax
return in your country of residence.
(1-4) For Further Information
If you need further information on Japanese
taxes, please access the following websites.
(a) Ministry of Finance (www.mof.go.jp)
"An Outline of Japanese Taxes"
(b) National Tax Agency (www.nta.go.jp)
"Income Tax Guide for Foreigners," which
includes how to file an income tax return
(c) Taxanswer (www.nta.go.jp/taxanswer/english/gaikoku.htm)
"Income Tax Guide for Foreigners," which
includes income tax information for foreigners
in Japan and how to contact tax officials
2. Tax Treaty between Japan and the United States
This tax treaty has several provisions which
reduce the Japanese tax burden of a U.S.
resident. The following are examples of tax
benefits for an individual.
(2-1) Business Traveler to Japan
If (1) you are an employee of a U.S.
resident, (2) you stay in Japan for a period or
periods not exceeding in the aggregate 183 days
in any twelve month period commencing or ending
in the taxable year concerned, and (3) the
payment to you is not born by a permanent
establishment of the U.S. resident situated in
Japan, then the payment to you in respect of the
employment exercised in Japan is tax exempt.
(2-2) Student studying in Japan
If (1) you are a student who is, or was
immediately before visiting Japan, a resident of
the United States, (2) you are present in Japan
for the primary purpose of your education or
training, and (3) the payment to you is for the
purpose of your maintenance, education or
training and is made from outside Japan, then
the payment to you is tax exempt.
This exemption applies to a business apprentice
only for a period not exceeding one year from
the date he first begins his training in Japan.
You are required to submit appropriate forms if
you want to enjoy these tax treaty benefits. If
you need more information, please contact a tax
official in Japan.
3. Japanese Tax Forms
You can download
the following application forms for tax treaty
benefits. (pdf files)
| Form 1: |
Relief from Japanese
Income Tax on Dividends |
| Form 2: |
Relief from Japanese Income
Tax on Interest |
| Form 3: |
Relief from Japanese Income
Tax on Royalties |
| Form 4: |
Extension of Time for
Withholding of Tax on Dividends with respect
to Foreign Depositary Receipt |
| Form 5: |
Relief from Japanese Income
Tax on Dividends with respect to Foreign
Depositary Receipt |
| Form 6: |
Relief from Japanese Income
Tax on Remuneration Derived from Rendering
Personal Services |
| Form 7: |
Relief from Japanese Income
Tax on Income Earned by Professionals,
Entertainers, Sportsmen, or Temporary
Visitors |
| Form 8: |
Relief from Japanese Income
Tax on Remuneration, Grants, etc.,
Received by Professors, Students, or
Business Apprentices |
| Form 9: |
Relief from Japanese Income
Tax on Pensions, Annuities, etc. |
| Form 10: |
Relief from Japanese Income
Tax on Not Expressly Mentioned in the Income
Tax Convention |
| Form 11: |
Refund of the Overpaid
Withholding Tax other than Redemption of
Securities and Remuneration Derived from
Rendering Personal Services Exercised by an
Entertainer or a Sportsman in accordance
with the Income Tax Convention |
| Form 12: |
Refund of the Withholding
Tax on Remuneration Derived from Rendering
Personal Services Exercised by an
Entertainer or a Sportsman in accordance
with the Income Tax Convention |
| Form 13: |
Refund of the Withholding
Tax on Profit from Redemption of Securities
in accordance with the Income Tax Convention
(Discount Government Bonds only) |
| Form 14: |
Refund of the Withholding
Tax on Profit from Redemption of Securities
in accordance with the Income Tax Convention
(for Discount Debentures other than Discount
Government Bonds) |
| Form 15: |
Relief from Japanese Income
Tax or Corporation Tax for Japanese Source
Income to report |
| Form 16: |
List of the Members of
Foreign Company or List of the Partners of
Entity |
| Form 17: |
Attachment Form for
Limitation on Benefits Article |
| Form 18: |
Application Form for
Competent Authority Determination |
If you need other
Japanese tax forms, please contact the Finance
Division of the Consulate General of Japan in
New York by phone at 212- 269-5440 or by e-mail .
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