Grant Thornton uses cookies to monitor the performance of this website and improve user experience

To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.

back
Global site
  • Global site
  • Africa
  • Americas
  • Asia Pacific
  • Europe
  • Middle East
  • Skip to content
  • Skip to navigation
English
  • 日本語
  • 中文
  • Services
  • Insights
  • About Us
  • Office Map
  • Careers
  • Contact
  • English
  • 日本語
  • 中文
Close Global search
type to see results
back
    Services
    • Audit & Assurance Services
    • Tax Services
    • Advisory
    Audit & Assurance Services
    We approach each audit with sharp thought, straight talk and common sense. In addition to verifying that financial results are fairly presented and meet...
    See Overview
    Tax Services
    Ambitious organisations need to consider their tax affairs carefully to gain trust and stay ahead of their competitors.
    See Overview
    • Business Tax Services
      Growing businesses need strong tax management to meet current and future tax liabilities and we can help you achieve this, whatever challenges you face.
    • Private Client Consulting
      Private Client Consulting team provides a comprehensive cross section of advisory services to high net worth individuals and corporate executives, allowing such individuals to concentrate on their business interests.
    • International Tax Services
      In an ever-increasing environment of global competition, businesses must now cope with not only the complexity of different global operating environments, but also with global tax, legislative and corporate regulatory requirements.
    • Transaction Tax
      We provide total support from the early due diligence stage right through to implementation of the post-transaction structure, considering not only the tax impact but also assisting with business valuations and planning the business restructuring.
    Advisory
    As your business grows, our advisory services are designed to help you achieve your goals. Successful growth often means navigating a complex array of...
    See Overview
    • Corporate Finance
      Our business consulting services can help you improve your operational performance and productivity, adding value throughout your growth life cycle.
    • IPO Consulting
      From business incubation to public stock offering, Grant Thornton Taiyo Inc. offers a wide range of support programsservices for every stage of business development.
    • International financial reporting standards (IFRS)
      Our IFRS advisers can help you navigate the complexity of the Standards so you can focus your time and effort on running your business.
    • Reorganizations
      Grant Thornton Taiyo Inc. provides total support for corporate restructuring; aimed atto responding to dramatic changes in the management environment.
    • Corporate governance and risk management
      We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
    • Forensic and investigation services
      We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
    • Market research
      We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
    • Strategy
      We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
    • China Business and Tax Advisory Services
      Grant Thornton Taiyo Tax Corporation takes the worry out of doing business in China, working closely with Grant Thornton member firms and other professional accounting firms in China.
    • Human Capital
      With expertise visa, payroll, human capital and income tax, Grant Thornton Taiyo Human Capital Corporation adopts a multi-disciplinary and global approach to provide comprehensive solutions to businesses with respect to their most valuable asset, people.
    • Business Process Re-engineering
      “Business improvement” aims to gradually increase efficiency through a reduction in errors and improvement in the quality of work.
    • Forensic and investigation services
      We can support you throughout the transaction process – helping achieve the best possible outcome at the point of the transaction and in the longer term.
    • English
    • 日本語
    • 中文
    1. Home
    2. Insights
    3. Global mobility services
    4. Japanese tax reform impacts expats and allowable deductions

    Japanese tax reform impacts expats and allowable deductions

    2019/12/19

    Japanese tax reform impacts expats and allowable deductions

    On 12 December 2019, the Japanese government announced tax changes for 2020 including a provision that will affect internationally mobile employees.

    While not coming into effect for a number years until 1 January 2024, overseas family members will not be eligible to claim as tax dependents for the purposes of an income tax deduction.

    Key changes

    Effective 1 January 2024, family members aged between 30 and 69 living outside Japan who are tax non-resident in Japan cannot be claimed as tax dependents for income deduction purposes unless they meet one of the following conditions:

    1. Have become a tax non-resident of Japan to pursue studies outside Japan
    2. Suffers from a disability
    3. Receive JPY 380,000 or more of financial support per year from the taxpayer towards their living and education expenses.

    In addition, in order to substantiate a claim for the above, the tax authorities have advised following documents must be attached to an individual’s tax return substantiate the requirements.

    • A copy of student visa issued by the foreign government to evidence condition 1 above.
    • A copy of international wiring documents to evidence condition 3 above.

    The changes will mean a loss of a deduction currently worth JPY380,000 per year (approximately USD3,465). No details have been released yet as to how to evidence the second point as being met, or circumstances where a foreign visa may not be required. Further guidance on this change is expected in due course.

    For businesses with internationally mobile employees working in Japan or overseas who may be impacted, certain employees may see their tax burden increase in addition to further compliance administration to be compliant. For larger tax equalised assignee populations, the tax cost borne by the company may similarly see costs increase though there is plenty of time to plan and identify which employees may be affected.

    Get in touch

    If you would like to discuss the full implications of these changes, please contact Tosh Kamii, Grant Thornton Japan

       

    Global talent mobility hub

    In a globalised world, international talent mobility is a key element of a successful global business, it comes with challenges and risks, as well as opportunities.

    Share

    • Facebook LinkedIn
    • Twitter Twitter
    • LinkedIn LinkedIn
    • Line
    • Email Email
    Follow us
    • Grant Thornton on Youtube
    • LinkedIn icon
    • Twitter icon
    Connect
    • Contact
    • Office Map
    About
    • About Us
    • Press releases
    Legal
    • Privacy policy
    • Disclaimer

    © 2023 Grant Thornton Japan - All rights reserved. "Grant Thornton” refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.