Japan
Eastern Asia · JP · 88 treaties
What is the top personal income tax rate in Japan?
Japan has a top personal income tax rate of 45%.
Tax profile
| Corporate income tax | 23.2% |
| Withholding — dividends | 20.42% |
| Withholding — interest | 20.42% |
| Withholding — royalties | 20.42% |
| VAT / GST (standard) | 10% |
| Personal income (top rate) | 45% |
| Capital gains | 20.315% |
| Tax system | Worldwide |
| Residency threshold | 183 days |
| Exit / departure tax | Yes |
| CFC rules | Yes |
| Transfer pricing | Strict |
| Digital nomad visa | Digital Nomad Visa |
| Digital services tax | none |
| Global minimum tax (Pillar 2) | Implemented |
Common questions
- What is Japan's corporate tax rate?
- The corporate tax rate in Japan is 23.2%.
- How long does it take to become a tax resident in Japan?
- It takes 183 days to establish tax residency in Japan.
- Is cryptocurrency taxed as income in Japan?
- Yes, cryptocurrency is classified as income and is taxed as such in Japan.
Tax residency
ModerateWhat makes you a tax resident — and how hard it is to stop being one.
- having a 'domicile' (jusho) in Japan, meaning a base of living or centre of vital interests in Japan
- having a 'residence' (kyosho) in Japan continuously for one year or more
- being sufficiently presumed, based on circumstances (e.g. employment contract, family, housing), to reside in Japan continuously for more than one year
Domicile / deemed-domicile
Tax residency normally ends when you no longer have a domicile or a residence of one year or more in Japan, but the authorities look at overall facts (family, work, housing), so merely dropping below a day count is not enough and some individuals can still be treated as domiciled.
Source: National Tax Agency Japan
Tax treaty network (107)
In-force double-tax treaty partners. Treaty-reduced withholding (dividends / interest / royalties) shown where the official source publishes a rate; otherwise the country's statutory rate applies unless the treaty text provides a reduction.
| Partner | Div | Int | Roy |
|---|---|---|---|
| Albania | — | — | — |
| Armenia | — | — | — |
| Australia | 10% | 10% | 5% |
| Austria | 20% | 10% | 10% |
| Azerbaijan | 7% | 7% | 7% |
| Bangladesh | 15% | 10% | 10% |
| Belarus | — | — | — |
| Belgium | 15% | 10% | 10% |
| Bulgaria | 15% | 10% | 10% |
| Cambodia | — | — | — |
| Canada | 15% | 10% | 10% |
| Chile | 15% | 10% | 10% |
| China | 10% | 10% | 10% |
| Colombia | 10% | 10% | 10% |
| Croatia | 5% | 5% | 5% |
| Cyprus | — | — | — |
| Czechia | — | — | — |
| Denmark | 15% | 10% | 10% |
| Ecuador | 10% | 10% | 10% |
| Egypt | 15% | 20% | 20% |
| Estonia | 10% | 10% | 0% |
| Finland | 15% | 10% | 10% |
| France | 10% | 10% | 0% |
| Georgia | 5% | 5% | 0% |
| Germany | 15% | 0% | 0% |
| Greece | 10% | 10% | 5% |
| Hong Kong S.A.R. | 10% | 10% | 5% |
| Hungary | 10% | 10% | 10% |
| Iceland | 15% | 0% | 0% |
| India | 10% | 10% | 10% |
| Indonesia | 15% | 10% | 10% |
| Iran | — | — | — |
| Iraq | — | — | — |
| Ireland | 15% | 10% | 10% |
| Israel | 15% | 10% | 10% |
| Italy | 15% | 10% | 10% |
| Jordan | — | — | — |
| Kazakhstan | 15% | 10% | 5% |
| Kuwait | 10% | 10% | 10% |
| Kyrgyzstan | — | — | — |
| Laos | — | — | — |
| Latvia | 0% | 0% | 0% |
| Lebanon | — | — | — |
| Lithuania | 0% | 0% | 0% |
| Luxembourg | 15% | 10% | 10% |
| Malaysia | 15% | 10% | 10% |
| Malta | — | — | — |
| Mexico | 15% | 5% | 10% |
| Moldova | — | — | — |
| Mongolia | — | — | — |
| Morocco | 10% | 10% | 10% |
| Myanmar | — | — | — |
| Netherlands | 10% | 5% | 0% |
| New Zealand | 15% | 10% | 5% |
| Norway | 15% | 10% | 10% |
| Oman | 10% | 10% | 10% |
| Pakistan | 10% | 7.5% | 10% |
| Panama | — | — | — |
| Peru | 10% | 10% | 15% |
| Philippines | 15% | 10% | 15% |
| Poland | 10% | 10% | 10% |
| Portugal | 10% | 10% | 5% |
| Romania | 10% | 10% | 15% |
| Russia | 10% | 5% | 0% |
| Saudi Arabia | 10% | 10% | 10% |
| Republic of Serbia | 10% | 10% | 10% |
| Singapore | 15% | 10% | 10% |
| Slovakia | — | — | — |
| Slovenia | 5% | 5% | 5% |
| South Africa | 15% | 10% | 10% |
| Spain | 15% | 10% | 10% |
| Sri Lanka | 20% | 20% | 10% |
| Sweden | 10% | 0% | 0% |
| Switzerland | 10% | 10% | 0% |
| Syria | — | — | — |
| Taiwan | 10% | 10% | 10% |
| Tajikistan | — | — | — |
| Thailand | 15% | 20% | 15% |
| Turkey | 15% | 10% | 10% |
| Turkmenistan | — | — | — |
| Ukraine | 15% | 10% | 5% |
| United Arab Emirates | 10% | 10% | 10% |
| United Kingdom | 10% | 0% | 0% |
| United States of America | 10% | 5% | 0% |
| Uruguay | 10% | 10% | 10% |
| Uzbekistan | 10% | 5% | 5% |
| Venezuela | — | — | — |
| Vietnam | 10% | 10% | 10% |
| Zambia | 0% | 10% | 10% |
| Algeria | 10% | 7% | 10% |
| Argentina | 15% | 12% | 10% |
| Bermuda | — | — | — |
| Brazil | 12.5% | 12.5% | 25% |
| British Virgin Islands | — | — | — |
| Brunei | 10% | 10% | 10% |
| Cayman Islands | — | — | — |
| Fiji | 15% | 10% | 10% |
| Guernsey | — | — | — |
| Jamaica | 10% | 10% | 10% |
| Jersey | — | — | — |
| South Korea | 15% | 10% | 10% |
| Liechtenstein | — | — | — |
| Macao S.A.R | — | — | — |
| Isle of Man | — | — | — |
| Qatar | 10% | 10% | 5% |
| Samoa | — | — | — |
| The Bahamas | — | — | — |