FAQ: How is my residency determined for tax in Japan?

Tax residency in Japan is primarily based on two factors: your "domicile" (住所 - jusho) and your length of stay.

• If you have a domicile in Japan, you are generally considered a resident. A domicile is your principal place of living, determined by objective facts like where your family lives, your occupation, and where your assets are primarily located.
• If you do not have a domicile in Japan but have resided in Japan for one year or more, you are also considered a resident for tax purposes.
• If you have neither a domicile nor have resided in Japan for one year or more, you are generally considered a non-resident.

A special category exists for non-Japanese nationals: the non-permanent resident (非永住者 - hi-eijusha). This applies if you are a resident but have been in Japan for five years or less within the last ten years. Non-permanent residents are taxed on their Japan-source income and any foreign-source income that is paid in Japan or remitted to Japan. Foreign-source income not brought into Japan is not taxed.

The NTA provides detailed guidance on determining residency status, as it's a cornerstone of your tax obligations.