Japanese Income Tax Return

If you work for a company in Japan, your employer may handle a year-end tax adjustment (年末調整) on your behalf. However, this process does not cover all income — and for many foreign nationals, a separate tax return (確定申告) is required.

Filing incorrectly — or not at all — can result in significant additional tax, penalties, and interest, and may trigger a tax audit. We handle the full process on your behalf.

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Common Situations Requiring a Tax Return

Equity compensation RSUs, ESPPs, and stock options are not covered by year-end adjustments and must be reported separately in a tax return. Capital gains, dividends & interest Gains from the sale of shares, dividends, and interest income — particularly from overseas accounts — frequently require separate reporting. Overseas salary or income Income earned from overseas employers or overseas sources may need to be declared in Japan depending on your residency status.

Multiple employers If you receive salary from more than one employer, a tax return is generally required. Retirement payments & pension income Severance pay and pension income — especially where paid from overseas — require careful treatment and may trigger a filing obligation. Side income & rental income Freelance income, consulting fees, and rental income from properties in Japan or overseas may require a tax return.

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Taxable Scope: Non-Permanent Residents vs. Permanent Residents

Your tax obligations in Japan depend significantly on your residency classification under Japanese tax law.

Non-Permanent Resident 非永住者｜No Japanese nationality + resided in Japan for 5 years or less in the past 10 years Taxable on: Japan-sourced income Foreign-sourced income paid in Japan or remitted to Japan

Permanent Resident 永住者｜Resided in Japan for more than 5 years in the past 10 years Taxable on: Worldwide income — regardless of where it is earned or paid

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What Counts as Japan-Sourced Income?

For non-permanent residents, understanding what constitutes Japan-sourced income is critical. Common examples include:

Salary corresponding to work performed in Japan Dividends from Japanese corporations Rental income from real estate located in Japan

Gains from the sale of Japanese real estate or shares in Japanese companies Stock options exercised in Japan RSU / ESPP income where the vesting or purchase relates to work performed in Japan

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A Common Oversight: Remittance Taxation

Non-permanent residents are not taxed on foreign-sourced income that remains overseas. However, if that income is remitted to Japan — for example, transferred to a Japanese bank account — it becomes taxable in Japan.

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Foreign Tax Credit

If you have paid income tax in another country on income that is also taxable in Japan, you may be entitled to claim a foreign tax credit (外国税額控除) to avoid double taxation. The calculation can be complex, particularly where income is sourced from multiple countries.

We assess your eligibility for the foreign tax credit as part of the return preparation process.

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Filing Deadline

The filing deadline for the Japanese income tax return (確定申告) is March 15 of the following year.

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Late Filing, Amended Returns & Refund Claims

Late Filing If you missed the March 15 deadline, you can still file a late return (期限後申告). While late filing penalties may apply, filing voluntarily — before the tax authority contacts you — significantly reduces the penalties imposed.

Amended Return If you have already filed but the return contained errors or omissions, you can file an amended return (修正申告). Again, doing so proactively — before any audit — results in lower penalties than if the error is identified by the tax authority.

Refund Claim If you overpaid tax in a prior year — for example, due to an unclaimed foreign tax credit or deduction — you may be able to recover the overpayment by filing a request for correction (更正の請求). This can generally be filed within 5 years of the original filing deadline.

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What We Can Do for You

Income review & return preparation We review all your income sources, apply the correct tax treatment to each, and prepare your return accurately. Filing on your behalf We file your return electronically and confirm completion. No office visit required.

Prior year returns We handle late filings, amended returns, and refund claims for prior years — advising on the most appropriate approach to minimise penalties. Year-round advisory We are available for consultation throughout the year — not only at filing season — to advise on tax implications as your circumstances change.

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How It Works

1 Initial Consultation We review your income sources and residency status, and confirm your filing obligations and fee estimate.

2 Document Collection We send you an information request sheet. You provide the required documents at your convenience.

3 Preparation & Review We prepare your return and share a draft for your confirmation before filing.

4 Filing We file electronically on your behalf and confirm completion.