The following forms of income are exempt from tax if they are received by an individual:
Relocation expenses paid by an employer.
Housing supplied by the employer, subject to certain terms.
Reasonable airfare paid by the employer for home leave.
Severance pay, subject to certain conditions.
Incidental income from gifts and grants from the company, subject to specific conditions.
For companies, dividends received from a Japanese company, when the holding in the paying company is 33.33% or more and the shares are held for six months minimum are tax exempt.
If the holding is less than 25% or the holding period is less than six months 50% of the dividend income is taxable.
Dividend received from a foreign company when the holding is 25% or more and the holding period is more than six months, only 5% of the dividend income is taxable. 95% of the income is tax exempt.
Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
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Note: The information in this site is for general guidance only. Users of this site are advised to take professional advice before taking practical tax decisions.
Please read our terms of service
before entering this site.