Who Needs to File an Income Tax Return in Japan? Understanding the Requirements
Preparing an income tax return in Japan can be overwhelming, particularly if you are new to the country and are considered a non-resident in Japan. Knowing who has to file and when is crucial in remaining in compliance and ensuring that penalties are not incurred. If you're a full-time resident, part-time employee, or expat, this guide will help you sort out what you need to know in order to file taxes in Japan. Resident vs. Non-Resident: What’s the Difference and Who Cares? There are three classifications of taxpayers in Japan: non-residents, non-permanent residents, and permanent residents. The way you earn your money is also heavily impacted by your residency status. • Non-residents (individuals residing in Japan for one year or less) are taxed only on income from sources within Japan. • Nonresidents (people who lived in Japan for less than 5 years) are only taxed on Japanese-source income and the foreign income that is remitted to Japan. • Residents (those living i...