Question:

Are salaries in kind subject to income tax in Japan?

Answer:

Economic benefits from employers are basically taxed as salary income, with some exceptions.

According to the Income Tax Act, the economic benefits to employees from employers are subject to taxation. However, the following are excluded from taxable salaries:.

– Specific portion of the rent of company residence

– Travel expenses for foreign employees who meet certain requirements to return home

– Employee child tuition paid as a donation to a specific international school

– Expenses for Japanese language education for foreign employees, etc.