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Tax withholding and non- resident Employee of Japan

Tax withholding and non- resident Employee of Japan

As for tax of Japan and Non resident.

Assumed that a person (Mr.Van) is an employee of Japanese company.

He was hired by Japanese company.


This company is located in Japan.

Mr.Van is working in USA as employee of this company for more than 5 years.

Meaning, he was dispatched to USA by this Japanese company.

In this case, Mr.Van is non resident of Japan for tax wise.

When this Japanese company pays salary to Mr. Van, tax withholding is Necessary !

True or False ?
 
Answer is ……..

False
 


Kokunai gensen shotoku

In the case of Non resident (Hikyojusha), only domestic source income (Kokunai gensen shtoku ) is levied by Japanese government.

Mr.Van is working in USA, though He is employee of Japanese company.

So, his income is not Domestic source income.

His employer does not need to conduct tax withholding and Mr.Van does not need to pay income tax to Japanese government.

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