About Moore Shisei Tax Corporation
Founded in 1978, Moore Shisei Tax Corporation is a Japan-based accounting firm specializing in cross-border taxation and mobility tax services. The firm supports companies and individuals with expatriate and inpatriate tax compliance, payroll, and estate planning for high-net-worth clients.
Moore Shisei takes a holistic approach, integrating legal frameworks, HR policies, and business practices to provide precise, practical tax guidance that aligns with clients’ global objectives. With a dedicated team of certified public tax accountants, the firm delivers tailored, high-quality services to help organizations and mobile employees manage complex Japanese and international tax requirements effectively.
Key Mobility Tax Considerations for Assignments Involving Japan
When planning an international assignment to or from Japan, companies must pay careful attention to how relocation expenses and housing benefits are structured. Japan’s individual income tax law contains specific rules that can significantly affect both employer costs and employee take-home pay.
- Treatment of Moving Expenses
Under Japanese tax law, moving expenses related to an assignment in Japan are generally taxable unless they are properly supported by actual receipts and invoices. Many employers provide relocation allowances in advance, often paid in the Home country before the assignment begins. Without adequate documentation, these payments can be considered taxable income to the employee in Japan.
To mitigate unnecessary tax exposure, employers should plan ahead to ensure clear substantiation of moving costs and establish a compliant expense reimbursement process.
- Employer-Provided Housing Arrangements
One of the most tax-efficient benefits available in Japan is an employer-provided housing plan. When properly structured, housing provided by the employer can substantially reduce the taxable value of this benefit to the employee.
However, the conditions for tax-favored treatment must be carefully analyzed in advance, as the rules depend on factors such as lease arrangements, ownership, fair market rental value, and employer-employee cost sharing. Early coordination with local tax professionals is essential to determine the most beneficial and compliant approach.
- Importance of Advance Planning
Because Japan’s tax system places strong emphasis on documentation and procedural accuracy, advance planning before assignment initiation is critical. Reviewing relocation benefits, housing plans, and payroll structures prior to the move helps ensure compliance and prevents unexpected tax costs for both the employer and the assignee.
Need Support in Japan?
Moore Shisei Tax Corporation helps companies and globally mobile employees navigate Japan’s intricate mobility tax environment.
Contact us today to learn how we can help structure assignments, manage compliance, and optimize tax efficiency for your workforce in Japan.
