⚠️ 🇯🇵RSUs Vesting After Repatriation — Japan Tax Impact

Many employees assume that RSUs vesting after leaving Japan are not taxable in Japan. That assumption is often incorrect.

🔑 Key Rule

Even if RSUs vest after repatriation, the portion attributable to services performed in Japan remains taxable in Japan.

📌 How Japan Treats RSUs

RSUs are treated as employment income.
Taxable at vesting, not at grant.
Taxation is based on where the services were performed, not residency at vesting.

🧾 Taxation for Non-Residents (After Leaving Japan)

If RSUs vest after you become a non-resident of Japan:
The Japan service portion is treated as Japan-source income.
Taxed through a quasi-final tax return (Jun-Kakutei).
Flat tax rate: 20.42%.

❌ No deductions available
(including the basic exemption and other personal allowances)

✅ Key Takeaway

Vesting after repatriation does not automatically mean “no Japan tax.”
If RSUs relate to work performed in Japan, Japan still has taxing rights — at 20.42% with no deductions.

💡 This is a frequent misunderstanding among globally mobile employees and HR teams. Clear communication helps avoid unexpected tax exposure.