Scope of Taxable Income of Non-Permanent Residents

In the case of a resident whose form of residence in Japan is a non-permanent resident, income other than foreign source income prescribed in Article 95(1) of the Income Tax Act (Foreign Tax Credit) (hereinafter referred to as "foreign source income" in the main text) shall be taxed as follows

In the case of a non-permanent resident, income other than foreign source income prescribed in Article 95(1) of the Income Tax Act and foreign source income paid or remitted from abroad in Japan shall be within the scope of taxable income in Japan for the relevant year.

The term "remitted from abroad" includes not only currency brought into Japan and ordinary remittances, but also acts that are deemed to have been performed in lieu of ordinary remittances, such as borrowing or making advances in Japan and using deposits or other assets located outside Japan to repay such borrowings or advances. (Notice 7-6).

In addition, credit card payments made from an account at an overseas bank using a credit card used in Japan also fall under the category of "remittance from outside Japan" described above.