Japan

Individual - Foreign tax relief and tax treaties

Last reviewed - 03 March 2021

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 one has a PE in Japan.

Tax treaties

As of 1 June, 2020, Japan has tax treaties with the following countries:

Australia Hungary Philippines
Austria Iceland Poland
Bahamas India Portuguese Republic
Bangladesh Indonesia Qatar
Belgium Ireland, Republic of Russia
Bermuda Isle of Man Romania
Brazil Israel Samoa
British Virgin Islands Italy Saudi Arabia
Brunei Jamaica Singapore
Bulgaria Jersey Slovenia
Canada Kazakhstan South Africa
Cayman Islands Korea, Republic of Spain
Chile Kuwait Sri Lanka
China Latvia Sweden
Croatia Liechtenstein Switzerland
Czechoslovakia (1) Lithuania Taiwan
Denmark Luxembourg Thailand
Ecuador Macao Turkey
Egypt Malaysia USSR (2)
Estonia Mexico United Arab Emirates
Fiji Netherlands United Kingdom
Finland New Zealand United States
France Norway Vietnam
Germany Oman Zambia
Guernsey Pakistan
Hong Kong Panama

Notes

  1. The treaty with the former Czechoslovakia is applied to the Czech Republic and the Slovak Republic.
  2. The treaty with the former USSR is applied to Armenia, Azerbaijan, Belarus, Georgia, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan.

Mutual Administrative Assistance

Japan has signed a Convention on Mutual Administrative Assistance in Tax Matters and it is effective.

Base Erosion and Profit Shifting (BEPS) Agreement

On 7 June 2017, Japan signed a Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, which will not be effective until the instrument of ratification is submitted. As of 30 September 2020, it is effective with Australia, Austria, Belgium, Canada, Cyprus, Czech Republic, Denmark, Finland, France, Georgia, Guernsey, Iceland, India, Indonesia, Ireland, Isle of Man, Israel, Jersey, Republic of Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Mauritius, Monaco, Netherlands, New Zealand, Norway, Poland, Portugal, Qatar, Russia, San Marino, Saudi Arabia, Serbia, Singapore, Slovakia, Slovenia, Sweden, Switzerland, Ukraine, United Arab Emirates, United Kingdom, and Uruguay.

Totalisation agreements

Designed to avoid overlaps in social security enrolment, Japan has entered into social security agreements with several countries. As of 30 June 2020, the agreements currently in effect are with Australia, Belgium, Brazil, Canada, China, the Czech Republic, France, Germany, Hungary, India, Ireland, Korea, Luxembourg, the Netherlands, Philippines, Slovak Republic, Spain, Switzerland, the United Kingdom, and the United States. Agreements with Finland, Italy, and Sweden have been signed and are in the process of implementation.