Are You Paying the Right Tax in Japan?

A Free Checklist for Foreign Executives & Expatriates

by Tokyo Advisory  |  Roppongi Hills Mori Tower

If you live or work in Japan as a foreign national, chances are your tax situation is more complex — and more consequential — than you think.

Japan's tax residency rules are intricate. The obligations that apply to you depend on how long you've been here, where your income comes from, and whether you still have ties to your home country. Miss a filing, misjudge your residency status, or overlook an overseas account report, and the consequences can include heavy penalties, back taxes, and unwanted attention from the tax authorities.

That's why we created the Tokyo Advisory Japan Tax Residency & Cross-Border Tax Checklist — a practical, bilingual (English/Japanese) reference tool designed specifically for foreign executives and expatriates in Japan.

Use it as a starting point to understand where your situation may need professional attention.

What's Covered in the Checklist

The checklist walks you through six key areas:

1.  Tax Residency Status — Are you a Non-Permanent Resident, Permanent Resident, or non-resident? The answer changes everything.

2.  Japan Income Tax Filing — Employment income, rental income, stock options, mid-year departure filings.

3.  Foreign Asset Reporting — 国外財産調書 (required if you hold JPY 50M+ overseas), overseas remittances.

4.  U.S. Tax Obligations — FBAR, FATCA (Form 8938), Forms 5471/5472, PFIC, Streamlined procedures.

5.  Japan Inheritance & Gift Tax — The 10-year rule, worldwide estate exposure, gifting thresholds.

6.  Corporate & Business Tax — PE risk for remote workers, consumption tax, minpaku businesses.

Items marked with ⚠ indicate areas where your situation may warrant a conversation with a qualified cross-border tax professional.

Who Is This For?

•        Foreign executives on assignment in Japan

•        U.S. citizens and Green Card holders living in Japan

•        Expatriates planning to relocate to — or depart from — Japan

•        Non-residents with Japanese rental properties or investments

•        Business owners and freelancers operating in Japan

Why This Matters Right Now

Japan has significantly strengthened cross-border tax enforcement in recent years. The Japan National Tax Agency (NTA) has expanded information exchange agreements, and financial institutions are now required to report foreign account holders under the Common Reporting Standard (CRS). The IRS, meanwhile, continues to enforce FBAR and FATCA obligations against Americans abroad.

The cost of non-compliance is real — and preventable.

⚠  Common Issues We See

  • Non-Permanent Residents unaware that remittances of foreign income are taxable in Japan

  • U.S. citizens who have never filed an FBAR despite holding Japanese bank accounts

  • Long-term Japan residents surprised to learn their worldwide estate may be subject to Japan inheritance tax

  • Remote workers for foreign companies who don't realize their employer may have created a Permanent Establishment in Japan

Use the Checklist

The Tokyo Advisory Japan Tax Residency & Cross-Border Tax Checklist is a bilingual (English/Japanese) reference tool, A4 format, designed to be reviewed on your own or shared with your HR team or accountant.

If any items apply to your situation — particularly those marked ⚠ — we recommend speaking with a qualified cross-border tax professional.

→ Contact / Appointment: www.tokyoadvisory.com/en/contact

We are available for in-person meetings at our Roppongi Hills Mori Tower office, or online via Zoom.  面談のご予約はウェブサイトよりご確認ください。

Want to Understand the Rules in Full? Take the Online Program

The checklist gives you a practical overview of where your obligations may lie. If you want a deeper understanding of how Japan's cross-border tax system actually works, Tokyo Advisory offers a self-paced online program built specifically for foreign executives and expatriates.

Japanese Individual Tax Residency & Cross-Border Taxation

  — Online Program by Tokyo Advisory

  34 steps  |  Self-paced  |  Certificate awarded on completion

  Covers:

  • How Japan determines tax residency (and why it's not just about the 183-day rule)

  • Income tax obligations for Non-Permanent Residents, Permanent Residents, and non-residents

  • Foreign asset reporting requirements under Japanese law

  • U.S. compliance for Americans living in Japan: FBAR, FATCA, PFICs, and more

  • Japan inheritance and gift tax exposure for foreign nationals

  • Corporate and PE tax risks for remote workers and business owners

→ View the checklist:

Tokyo_Advisory_Tax_Checklist ver. 01.pdf

Download PDF • 680KB

Tokyo Advisory is a cross-border tax and corporate advisory firm based in Tokyo. Our team holds Japanese CPA (公認会計士), USCPA, 税理士, and 行政書士 qualifications. We specialize in international tax compliance, U.S. expat tax, and company formation for foreign executives and expatriates in Japan.