Expatriate tax ebook - Japan

Working outside Japan
An offshore compensation package is an important tax planning tool for non permanent resident taxpayers who work for periods on assignment outside Japan, as an outside Japan exclusion can be obtained. A salary paid from within Japan is treated as Japan source income and fully taxable in Japan, regardless of where the activities are performed.

The advantageous income tax treatment of certain benefits in kind, such as children’s school fees, can significantly reduce an expatriate’s tax liability. Related issues to consider include: tax implications of offshore / onshore compensation arrangements; the timing of compensation benefits and taxes; employer provided housing; and the tax treatment of directors, foreign entertainers and athletes. Grant Thornton Japan’s expatriate tax team can advise expatriates on these and related opportunities.



Information about Japan:

• introduction
• facts and figures
• basis of taxation
• what taxes?
• tax planning opportunities

Last updated 19 March 2008

This information has been provided by Grant Thornton Japan, a member firm within Grant Thornton International Ltd, and is for informational purposes only. Neither Grant Thornton Japan nor Grant Thornton International Ltd can guarantee the accuracy, timeliness or completeness of the data contained herein. As such, you should not act on the information without first seeking professional tax advice.

Grant Thornton International Ltd and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.
Disclaimer