Foreign income and remittances to Japan
Non-permanent-resident rules, foreign-source income, remittance ordering, and mixed accounts.
If you are a non-permanent resident, foreign-source income becomes taxable in Japan to the extent it is paid in or remitted here — and ordering rules mean a remittance from a mixed account can be treated as bringing over taxable income, so keep careful records.
Effective: 2026-01-01 to 2026-12-31
Professional review pending — treat as draft and confirm with the authorities.
Key points
- Non-permanent residents are taxed on remitted foreign income.
- A remittance from a mixed account can be deemed to carry taxable income.
- Do not assume only money kept abroad is safe.
- Keep records of income sources and remittances.
The remittance rule
A non-permanent resident is taxed on Japan-source income plus foreign-source income that is paid in or remitted to Japan. This is narrower than worldwide taxation but broader than “Japan-only,” and it catches money you bring in. Ordering rules can treat a remittance as first carrying over your foreign income for the year, even if you think of it as moving savings.
Mixed accounts and records
Because a remittance from an account holding both income and capital can be attributed to income first, mixing funds makes the analysis harder and can increase what is taxable. Keep foreign income, capital, and remittances documented and, where possible, segregated. This is a classic area for a mistake, so get advice before large remittances.
Who this is for
- Non-permanent residents
- Newcomers remitting savings
What this is not
- Permanent residents (worldwide anyway)
- A remittance from a mixed account can be deemed to bring in taxable income — segregate and record.
Frequently asked questions
How does tax residency work in Japan?
For tax, Japan classifies you as non-resident, non-permanent resident, or permanent resident — separate from your immigration status. Broadly: non-residents are taxed only on Japan-source income; non-permanent residents (in Japan under 5 of the last 10 years, without permanent intent) are taxed on Japan-source income plus foreign income paid in or remitted to Japan; permanent residents (for tax) are taxed on worldwide income. This affects foreign income and investments, so confirm your category with the NTA or a tax accountant.