Shirokane CPA Firm

On Shorter Stay in Japan, Not Taxed in Japan?

If you sale your products or provide your service in Japan, do you have to pay Japan tax? This depends on your type of taxpayer on Japan Tax Laws. As I briefly write about taxpayer type before, if you are classified to a resident or a non-permanent resident, you have to pay the tax for income generated in Japan. 1. Under What situation Would You Be Taxed in Japan? So, if you sales your products into Japan through internet at your e-shop from US or Europe, or if you have a couple of business in some countries including Japan and provide your service in Japan just during your temporary stay[…]

Shirokane CPA Firm

What kind of taxpayers are you classified as?

Japan Income Tax Act classifies individual taxpayers as following three types. Resident Nonresident Non-permanent Resident 1. Resident Resident is an individual who has a domicile or has had a residence continuously for one year or more in Japan. Residents are composed of both permanent residents and non-permanent residents. 2. Nonresident Nonresident is just defined as an individual who is not a resident. 3. Non-permanent Resident 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. When your taxpayer type is determined, some situations are considered.[…]