Non-Permanent Resident or Non-Resident? Your Tax Status in Japan
Japan has three tax statuses for individuals: permanent resident for tax, non-permanent resident and non-resident. Your status decides which income Japan taxes. It depends on where you live, how long you have lived here and, for non-permanent residents, your nationality.
Your visa does not decide your tax status. "Non-permanent resident" is a tax term. It is separate from the Permanent Resident visa.
The three statuses, and what Japan taxes under each
Your status sets the scope of your Japanese income tax. In this guide, "permanent resident for tax" means what the National Tax Agency (NTA) calls a resident other than a non-permanent resident.
| Tax status | Who it covers | Income Japan taxes |
|---|---|---|
| Permanent resident for tax | A person with a domicile in Japan, or one year or more of continuous residence, who is not a non-permanent resident | All income, in Japan and abroad |
| Non-permanent resident | A resident without Japanese nationality who has had a domicile or residence in Japan for five years or less in total in the past ten years | All income except foreign-source income, plus foreign-source income paid in Japan or remitted to Japan |
| Non-resident | Anyone else | Japanese-source income only |
Residence depends on where you live, not a 183-day count
You are a resident if you have a domicile in Japan, or have had a residence here for one year or more in a row. A domicile is the center of your life. It is judged from objective facts such as your home, job, assets, family and nationality.
If your job normally requires you to live in Japan for a year or more, you are presumed to have a domicile here. The same goes for a spouse or dependents who live in Japan and share your finances. The presumption does not apply if a contract or similar arrangement clearly sets a stay of under one year.
If you have no domicile, you are a non-resident until one year has passed since you entered Japan. Spending 183 days or more outside Japan does not by itself make you a non-resident. If another country also treats you as a resident, a tax treaty may decide the question.
Your visa does not set your tax status
Immigration status and tax status are separate systems. You become a permanent resident for tax once your time in Japan passes five years within the past ten years. You do not need a Permanent Resident visa for this.
The rule also works the other way, because the legal definition has no visa test. Take a person who lives in Japan on a Permanent Resident visa. If that person's total time with a domicile or residence here in the past ten years is five years or less, the definition makes them a non-permanent resident for tax. This is uncommon, but it can happen after an early Permanent Resident approval or a long period abroad. Japanese nationals are never non-permanent residents.
Time adds up across separate stays and visa types. You count by the calendar, then treat 30 days as one month and 12 months as one year.
David comes to Japan for the first time on April 1, 2022, for a long-term job, and stays. His count starts the next day, so five years end in early April 2027. He is a non-permanent resident until then, and a permanent resident for tax after that. His tax year 2027 has two periods.
Priya studied in Japan for two years, left, and returned two years later on a work visa. Her student years still count, so she has about three years left as a non-permanent resident.
These examples rest on certain assumptions and are a guide only.
There are two different five-year counts
The five years for non-permanent resident status are not the five years for Japan's exit tax.
Non-permanent resident status
- Applies to residents without Japanese nationality.
- Counts all time with a domicile or residence in Japan.
- Your visa type makes no difference.
- Decides how much foreign income Japan taxes.
Exit tax on securities
- Can apply to any resident who leaves Japan.
- Also needs ¥100 million or more in securities and similar assets.
- Does not count time on statuses in Appendix I of the Immigration Act, such as Engineer/Specialist in Humanities/International Services, Intra-company Transferee or Student.
- Counts time on Appendix II statuses, such as Permanent Resident, from July 1, 2015 onward.
Maria has worked in Japan for twelve years on an Engineer/Specialist visa. She is a permanent resident for tax, yet that visa time does not count for the exit tax. If she later holds a Permanent Resident visa, that time does count. See our guide to the exit tax on securities.
Non-permanent residents: the remittance rule is narrower than many people think
Keeping money abroad does not make your foreign income tax-free. A non-permanent resident is taxed on all income except foreign-source income, wherever it is paid. Foreign-source income is taxed only if it is paid in Japan or remitted to Japan.
- Pay for work in Japan is not foreign-source income, even if a foreign parent pays it into an overseas account.
- Shares you acquired as a non-permanent resident need care. The gain is generally taxable even if you sell abroad and keep the money there. RSU shares received in this period are an example. See our RSU page.
- Overseas rent paid straight into your Japanese bank account counts as paid in Japan.
- A remittance is more than a bank transfer. Carrying cash into Japan counts. So can bringing in securities, or repaying a debt in Japan from an overseas account, when that replaces a normal transfer.
Shares get foreign-source treatment only in limited cases. You must sell through a foreign market or foreign broker, or hold them in an overseas account. You must also have acquired them in one of three periods: at least ten years before the sale, a time when you were not a non-permanent resident, or on or before March 31, 2017. Shares of the same stock count as sold oldest first.
| Income other than foreign-source income, paid abroad (taxed in any case) | ¥2,500,000 |
|---|---|
| Foreign-source income, paid abroad | ¥1,000,000 |
| Amount remitted to Japan | ¥2,600,000 |
| First matched to the ¥2,500,000 above | ¥2,500,000 |
| Treated as foreign-source income remitted, and taxed | ¥100,000 |
Based on the NTA's worked example, restated in yen. It rests on certain assumptions and is a guide only.
Common mistakes
- "I have no Permanent Resident visa, so I am a non-permanent resident." After more than five years in ten, you are not, whatever your visa says.
- "My five years restart with each new visa." They do not. Earlier stays count if they fall within the past ten years.
- "I went home for a while, so I am a non-resident." If you leave temporarily and keep your family or home here, you can be treated as staying in Japan.
What you can do yourself, and where you need help
You can gather the facts yourself:
- List every date you entered and left Japan in the past ten years.
- List your overseas accounts and the income each one paid, by year.
- Keep your remittance records and the acquisition date of each share lot.
You need help if your family and job are in different countries, your status changes mid-year, or you sell shares held abroad.
What changes when a tax accountant handles it
Komatsu CPA & Tax Accounting Office helps individuals only, with Japanese tax only, and offers no calls. Yuma Komatsu does this work:
- Sets your status for each tax year, and splits the year if it changes.
- Applies the remittance rule using your bank records.
- Tests each share sale against its acquisition date.
- Files the Japanese return after you approve an English summary.
Frequently asked questions
Is a non-permanent resident the same as someone with a Permanent Resident visa?
No. A non-permanent resident is a tax status. The Permanent Resident visa is an immigration status. One does not decide the other.
When do I stop being a non-permanent resident?
You stop on the day after your total time in Japan within the past ten years reaches five years. Earlier stays count, even on a different visa.
Am I a non-resident if I spend under 183 days in Japan?
Not automatically. Japan looks at your domicile and residence. The NTA says you can be a Japanese resident even if you spend 183 days or more abroad.
Do non-permanent residents file a Foreign Asset Report?
No. The Foreign Asset Report does not cover non-permanent residents. It can apply once you are a permanent resident for tax on December 31 and your overseas assets are over ¥50 million on that date.
Not sure which tax status applies to you?
Yuma Komatsu is a Japanese CPA and licensed tax accountant. We prepare, sign and file your return. We work by email in written English. Our tax accountant does not speak English, and we do not offer calls.
Sources
- NTA: 2025 Income Tax and Special Income Tax for Reconstruction Guide (English), pages 5 to 9
- NTA No. 12019: Foreigners who receive salaries from their home country
- NTA Tax Answer No. 2010: Individuals who are taxpayers (Japanese)
- NTA Tax Answer No. 2012: Residents and non-residents with more than one place of stay (Japanese)
- NTA Basic Circular on Income Tax, items 2-1 to 2-4-3 (Japanese)
- NTA Basic Circular on Income Tax, items 7-1 to 7-6 (Japanese)
- NTA Tax Answer No. 1478: Exit tax (Japanese)
- NTA: Exit Tax FAQ, Q3 (Japanese)
- NTA Tax Answer No. 7456: Foreign Asset Report (Japanese)
- Income Tax Act, Articles 2, 7 and 60-2 (Japanese)
- Order for Enforcement of the Income Tax Act, Articles 14, 17 and 170 (Japanese)
This article is general information based on rules in force as of November 6, 2026. It is not advice for your situation.