Japan

Individual - Foreign tax relief and tax treaties

Last reviewed - 02 July 2025

Foreign tax relief

Resident taxpayers can credit foreign income taxes against their Japanese national tax and local inhabitant’s tax liabilities (with certain limitations), where foreign-source income is taxed in Japan. Non-resident taxpayers are not entitled to take foreign tax credits on their Japan income tax returns unless they have a permanent establishment (PE) in Japan.

Tax treaties

As of 13 June 2025, Japan has tax treaties with the following countries:

Algeria Guernsey (2, 3) Peru (1, 3)
Armenia (1, 3) Hong Kong (1, 3) Philippines (1, 3)
Australia (1, 3) Hungary (1, 3) Poland (1, 3)
Austria (1, 3) Iceland (1, 3) Portugal (1, 3)
Azerbaijan (1, 3) India (1, 3) Qatar (1, 3)
Bahamas (2, 3) Indonesia (1, 3) Romania (1, 3)
Bangladesh (1) Ireland (1, 3) Russia (1, 3)
Belarus (1) Isle of Man (2, 3) Samoa (2, 3)
Belgium (1, 3) Israel (1, 3) Saudi Arabia (1, 3)
Bermuda (2, 3) Italy (1, 3) Serbia (1, 3)
Brazil (1, 3) Jamaica (1, 3) Singapore (1, 3)
British Virgin Islands (2, 3) Jersey (2, 3) Slovakia (1, 3)
Brunei (1, 3) Kazakhstan (1, 3) Slovenia (1, 3)
Bulgaria (1, 3) Korea (1, 3) South Africa (1, 3)
Canada (1, 3) Kuwait (1, 3) Spain (1, 3)
Cayman Islands (2, 3) Kyrgyzstan (1) Sri Lanka (1)
Chile (1, 3) Latvia (1, 3) Sweden (1, 3)
China (1, 3) Liechtenstein (2, 3) Switzerland (1, 3)
Colombia (1, 3) Lithuania (1, 3) Taiwan (4)
Croatia (1, 3) Luxembourg (1, 3) Tajikistan (1)
Czech Republic (1, 3) Macao (2, 3) Thailand (1, 3)
Denmark (1, 3) Malaysia (1, 3) Turkey (1, 3)
Ecuador (1, 3) Mexico (1, 3) Turkmenistan (1)
Egypt (1) Moldova (1, 3) Ukraine (1, 3)
Estonia (1, 3) Morocco (1, 3) United Arab Emirates (1, 3)
Fiji (1) Netherlands (1, 3) United Kingdom (1, 3)
Finland (1, 3) New Zealand (1, 3) United States (1, 3)
France (1, 3) Norway (1, 3) Uruguay (1, 3)
Georgia (1, 3) Oman (1, 3) Uzbekistan (1)
Germany (1, 3) Pakistan (1, 3) Vietnam (1)
Greece (1, 3) Panama (2, 3) Zambia (1)

Notes

  1. These jurisdictions have tax conventions in Japan that were formed primarily to eliminate double taxation and prevent tax evasion and avoidance. A total of 74 conventions cover 81 jurisdictions. The number of tax conventions is not equal to the number of jurisdictions due to multiple cases where conventions were succeeded by multiple jurisdictions.
  2. These jurisdictions are in a tax information exchange agreement with Japan that was formed primarily to exchange information regarding tax matters. A total of 11 conventions cover 11 jurisdictions.
  3. These jurisdictions are signatories of the Convention of Mutual Administrative Assistance in Tax Matters and have bilateral agreements with Japan. Out of the 144 jurisdictions who are a part of this multilateral agreement, 81 have formed bilateral agreements with Japan.
  4. The government of Japan does not have an international agreement with the government of Taiwan; however, a private-sector tax agreement is in place between the Japan-Taiwan Exchange Association of Japan and the Taiwan-Japan Relations Association of Taiwan.

    Mutual Administrative Assistance

    Japan is a signatory to the Convention on Mutual Administrative Assistance in Tax Matters, which is currently in effect.

    Base Erosion and Profit Shifting (BEPS) Agreement

    On 7 June 2017, Japan signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, which will not take effect until the instrument of ratification is submitted. As of 13 June 2025, this treaty is in effect in the following countries:

    Australia  Ireland  Portugal
    Bulgaria Israel Qatar
    Canada  Kazakhstan  Romania
    China  Korea  Saudi Arabia 
    Czech Republic  Luxembourg  Singapore
    Egypt  Malaysia  Slovakia 
    Finland Mexico  South Africa 
    France  Netherlands  Sweden
    Germany  New Zealand Thailand 
    Hong Kong  Norway Ukraine 
    Hungary Oman  United Arab Emirates
    India Pakistan United Kingdom 
    Indonesia  Poland Vietnam

    Totalisation agreements

    Designed to avoid overlaps in social security enrolment, Japan has entered into social security agreements with several countries. This agreement has two effects, which are the following:

    1. Prevention of double enrolment: Social insurance systems are coordinated to prevent dual enrolment.
    2. Totalisation of period of pension participation: The period of pension participation is summed between the two countries so that it is easier for insured persons to meet the requirements for the period of participation needed to receive pension benefits.

    As of June 2025, the agreements currently in effect are with Australia, Belgium, Brazil, Canada, China, the Czech Republic, Finland, France, Germany, Hungary, India, Ireland, Italy, the Republic of Korea, Luxembourg, the Netherlands, the Philippines, the Slovak Republic, Spain, Sweden, Switzerland, the United Kingdom, and the United States. Agreements with China, Italy, the Republic of Korea, and the United Kingdom include ‘elimination of dual coverage’ only.