
Treaty Exemption for Short-Term Business Travelers
For example, let’s say a person from the United States works for a company headquartered in the U.S. and is temporarily assigned to the company’s Japan branch for five months. During this period, the person’s salary is paid by the Japan branch. In this case, is the salary earned during the five-month assignment taxable in Japan? Is the individual eligible for the treaty exemption for short-term business travelers? This article explains the Japanese tax treatment of employment income paid to non-residents by Japanese companies and outlines the conditions for the treaty exemption for short-term business travelers.