Tax equalization policy

My company is sending me to their Japan office for a project but I’ll be on my home country’s salary. The approved travel duration is 8 months and I have a 1 year visa. When will I have to leave Japan to avoid a huge tax equalization cost for my company?

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  1. This is a copy of your post for archive/search purposes.

    **Tax equalization policy**

    My company is sending me to Japan for an onsite project but I’ll be on my home country’s salary. The approved travel duration is 8 months and I have a 1 year visa. When will I have to leave Japan to avoid a huge tax equalization cost for my company?

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  2. This is going to depend on the tax treaty between your country and Japan, as well as a ton of other factors.

    You’ll probably want to consult with lawyers and/or accountants. And possibly post over in r/JapanFinance.

    One thing to note: Even if you’re still getting paid in your home currency to a home-country bank account you will *probably* owe income taxes in Japan. The National Tax Agency generally considers all work done while physically in Japan to be “working in Japan”. Again: Consult with professionals on this.

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