Savanna Hoffman
Foreign nationals and international students living in Japan are subject to taxes, although the type of tax owed depends on their residency status and income. Students on short-term visas are considered non-residents for tax purposes and are only taxed on income earned in Japan. Permanent residents, on the other hand, are taxed on their worldwide income. International students with a street address in Japan and income above a certain threshold are subject to resident tax. Students who work as freelancers or have multiple sources of income may need to submit a tax return and pay income taxes. Additionally, students from countries with a tax treaty with Japan may be exempt from income tax.
| Characteristics | Values |
|---|---|
| Who needs to pay taxes? | Foreign nationals and international students who have lived in Japan for a while. |
| What type of taxes do they need to pay? | Income tax. |
| Who is exempt from paying income tax? | International students from a country with which Japan has a tax treaty. |
| How is income tax paid? | It is automatically calculated and deducted from the paycheck by the employer. |
| What if students have a large income other than their part-time job salary? | They will need to submit a final tax return to the tax office and pay the tax themselves by the filing deadline. |
| Are there any other taxes that international students need to pay? | Resident tax. |
| How is resident tax paid? | There are two methods: special collection and ordinary collection. Special levy is deducted from the salary every month and paid to the local government. Ordinary collection means the student pays the tax themselves. |
| Who is exempt from resident tax? | Those who do not work part-time or whose total income in the previous year did not exceed a certain amount. |
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What You'll Learn
Foreign income in a non-Japanese bank account
Foreign nationals and international students who have lived in Japan for an extended period are required to pay taxes. However, there are several deductions and exemptions that may apply to international students with foreign income in non-Japanese bank accounts.
Firstly, if you are an international student from a country with which Japan has a tax treaty, you may be exempt from paying Japanese income tax on your foreign income. It is important to check with the Japanese Ministry of Foreign Affairs to determine if your country of origin is a party to such a treaty.
Secondly, even if you are not exempt from income tax, there are various deductions that can reduce your taxable income. For example, if you have dependents, you may be eligible for a lower tax rate. In most cases, if you have a part-time job, your income tax will be automatically calculated and deducted from your paycheck (known as "withholding tax"). However, if you have significant income from sources other than your part-time job, you may need to submit a tax return and pay any additional tax directly to the tax office by the filing deadline.
It is worth noting that international students with a street address in Japan and income above a certain threshold are subject to resident tax. The amount payable is determined by your income from the previous year, and there are two payment methods: special collection and ordinary collection. Special collection involves monthly deductions from your salary, similar to income tax, which are then paid to the local government. If your part-time job does not handle resident tax through special collection, you will need to opt for ordinary collection, where you will receive a tax notice from your municipality and pay the amount specified.
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Student visa work limits
International students in Japan are allowed to work, but there are certain limitations. Initially, a student visa does not allow holders to work in Japan. Students must apply for "permission to engage in activity other than that permitted in status of residence previously granted," or a work permit, in order to work. Once approved, they will receive a stamp in their residence card and a sticker in their passport.
Students can work up to 28 hours a week, including all the places they work. For example, if a student works two jobs, they can only work 14 hours at each one. During summer or winter breaks, students are limited to 8 hours of work per day. Part-time work is not permitted during leaves of absence from the university.
International students at the University of Tokyo who work as research or teaching assistants must confirm with their departmental office whether a permit is required. They must also notify the administrative office of their faculty or graduate school when they receive their work permit.
International students with a street address in Japan who receive income above a certain amount as of January 1st of the year are subject to resident tax. The amount to be paid is determined by the income from the previous year, from January 1st to December 31st. There are two payment methods for resident tax: special collection and ordinary collection. Special levy is deducted from the salary every month and paid to the local government. If a part-time employer does not pay resident tax, the payment method will be normal collection, in which case the student must pay the tax themselves. A resident tax payment notice will be delivered to the student's home from their municipality around June every year.
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Resident tax
Foreign nationals and international students who have lived in Japan for a while are required to pay taxes. There are many types of taxes in Japan, and international students need to be aware of "income tax" and "resident tax".
International students with a street address in Japan and an income above a certain amount as of January 1st of the year are subject to resident tax. The amount payable is determined by the income from January 1st to December 31st of the previous year.
There are two payment methods for resident tax: special collection and ordinary collection. Special collection is deducted from your salary every month, like income tax, and paid to the local government. Check whether your part-time job will pay resident tax; if not, the payment method will be ordinary collection, which means you pay it yourself. A resident tax payment notice (tax notice) will be delivered to your home from your municipality around June every year, and you will pay the amount written on it.
Those who do not work part-time or whose total income in the previous year did not exceed a certain amount are exempt from resident tax. International students who receive a scholarship or allowance from home are also exempt. However, failure to file resident tax returns may result in your tax exemptions certificate not being issued, and an increase in the premiums to be paid for government-provided services.
Income Tax
In many cases, income tax is automatically calculated and deducted from your paycheck by your part-time job employer—this is called "withholding tax". If you have a large income other than your part-time job salary, you will need to submit a final tax return to the tax office and pay the tax yourself by the filing deadline.
International students from countries with which Japan has a tax treaty may be exempt from income tax. To obtain this exemption, the required procedures must be completed. If an exemption is granted, the student must report and pay income tax on the remuneration earned in Japan to the tax authorities of their country of residence.
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Income tax
Foreign nationals and international students who have lived in Japan for a while are subject to paying taxes. The type of tax they pay depends on their residency status.
Permanent residents
Permanent residents are taxed on their worldwide income. This includes all income earned in Japan and worldwide. To be considered a permanent resident for tax purposes, an individual must be domiciled in Japan (have their main home there) or have had a residence in Japan for over a year.
Temporary residents
Temporary residents are taxed on their income from Japan and other countries. However, they may be exempt from taxes on foreign-source income that is not remitted to Japan. They are also taxed on any capital gains that are not remitted to Japan and may be taxed on a portion of their foreign-source income that is remitted to Japan.
Non-residents
Non-residents are taxed only on their income earned in Japan. This includes income from employment, business interests, or other sources.
International students with a street address in Japan and income above a certain amount as of January 1st of the year are subject to resident tax. The resident tax amount is determined by the income earned from January 1st to December 31st of the previous year. There are two payment methods for resident tax: special collection and ordinary collection. Special collection involves deducting the tax amount from the student's salary each month, similar to income tax, and paying it to the local government. If the student's part-time job does not pay resident tax, they may need to pay through ordinary collection, which requires them to pay the tax themselves.
International students from countries with tax treaties with Japan may be exempt from income tax. Additionally, students on student visas can generate "business income" or "miscellaneous income" without specific permission, as long as their working hours do not exceed the 28-hour limit. However, they are not eligible for any special exemptions beyond this.
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Tax treaties
Foreign nationals and international students who have lived in Japan for an extended period are required to pay taxes. However, international students from countries with which Japan has a tax treaty may be exempt from income tax. As of June 2025, Japan has tax treaties with the following countries: 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.
The tax treaties, also known as tax conventions, are primarily aimed at eliminating double taxation and preventing tax evasion and avoidance. For instance, resident taxpayers can credit foreign income taxes against their Japanese national tax and local inhabitant's tax liabilities, provided certain conditions are met. Additionally, the period of pension participation between the two countries is totalized, making it easier for insured individuals to meet the requirements for receiving pension benefits.
It is important to note that the tax treaties do not eliminate all tax obligations for international students in Japan. Students may still be subject to other taxes, such as resident tax, if they have a street address in Japan and their income exceeds a certain threshold. The resident tax is calculated based on the individual's income from January 1st to December 31st of the previous year, and it can be paid through special or ordinary collection methods.
To determine their specific tax obligations, international students should consult official sources and tax offices. The tax treaties may have specific requirements or limitations, and understanding these is crucial for ensuring compliance with Japan's tax regulations.
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Frequently asked questions
Yes, international students in Japan are required to pay taxes. However, there are many types of taxes, so it is important to understand which ones apply. For example, international students with a street address in Japan and an income above a certain amount as of January 1st of the year are subject to resident tax.
International students in Japan are subject to income tax. If an international student is a temporary resident or non-resident, they only pay income tax on certain types of income. They may also be subject to local inhabitant's tax, which is imposed at a flat rate of 10%.
In many cases, taxes are automatically deducted from paychecks by employers, so international students with part-time jobs may not need to do anything. If an international student has a large income or is self-employed, they may need to submit a tax return to the tax office and pay the tax themselves by the filing deadline.
Students from countries with which Japan has a tax treaty may be exempt from income tax. International students in Japan will also often qualify for a special exemption to pension payments.
