Individual Income Tax

The Japanese tax system contains separate laws for individuals and corporations.

This chapter shows the major taxes applicable to individuals who are residents of Japan with a primary focus on the Income Tax.

The Income Tax Law classifies individuals into three classes of taxpayers

  1. permanent residents of Japan*
  2. non-permanent residents of Japan*
  3. non-residents

*residents of Japan(Kyojusha居住者)

A resident of Japan is an individual with a domicile(jusho住所)located in Japan or who has maintained a residence(kyosho居所)in Japan continuously for one year or more up to the current date. 

The scope of taxation differs depending on the residency classification.

However,Japanese source income is taxed regardless of residency classification.