Japan
Eastern Asia · JP · 88 treaties
Tax profile
| Corporate income tax | 23.2% |
| Withholding — dividends | 20.42% |
| Withholding — interest | 20.42% |
| Withholding — royalties | 20.42% |
| VAT / GST (standard) | 10% |
| Personal income (top rate) | 45% |
| Capital gains | 20.315% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Strict |
| Digital nomad visa | Digital Nomad Visa |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- having a 'domicile' (jusho) in Japan, meaning a base of living or centre of vital interests in Japan
- having a 'residence' (kyosho) in Japan continuously for one year or more
- being sufficiently presumed, based on circumstances (e.g. employment contract, family, housing), to reside in Japan continuously for more than one year
Domicile / deemed-domicile
Tax residency normally ends when you no longer have a domicile or a residence of one year or more in Japan, but the authorities look at overall facts (family, work, housing), so merely dropping below a day count is not enough and some individuals can still be treated as domiciled.
Source: National Tax Agency Japan
Tax treaty network (89)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.