Business Office Taxation in Japan
JAPAN TAX BULLETINThis article introduces the Business Office Tax, which needs to be considered when entities conduct business in offices or workplaces within cities with a population of 300,000 or more.
Contents
An individual taxpayer liable for income tax is classified as a resident or a non-resident.
A resident is an individual who has a domicile or has had a residence continuously for one year or more in Japan.
A non-resident is an individual who is not a resident.A non-permanent resident is a resident who does not have Japanese nationality and who has had a domicile or a residence in Japan for not more than five years in total within the past ten years.
With respect to income generated from overseas assets (foreign sourced income), such as interests on overseas deposits or dividends of overseas shares, non-permanent residents are taxed when those are either paid in, or deemed to be remitted to Japan.
Residents other than non-permanent residents are taxed on worldwide income.nese resident.
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