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Japan Non-Resident Tax for a Chef Sent Abroad: Payroll Guide

A chef sent abroad for a planned year or more is generally a non-resident for Japanese tax from departure. The one year presumption, two real cases where the plan changes, the year-end adjustment, withholding on bonuses, the host country's own withholding, and a 60/30/0-day payroll calendar.

Updated September 27, 2026 WashokuJob

A chef sent from Japan to work abroad for a planned year or more is generally treated as a non-resident for Japanese income tax from the day they leave, so pay for work abroad is not subject to Japanese withholding. The employer must still complete a year-end adjustment before departure, watch withholding on any bonus paid from Japan afterwards, and separately confirm what the host country withholds locally on the same pay, since Japanese non-resident status does not touch host-country tax at all.

This page is for payroll or HR at a Japanese restaurant company handling the departure of a chef sent to an overseas branch, and for the restaurant abroad working out what it must withhold locally. For the choice between secondment and local hire itself, see secondment vs local hire, which covers this ground more briefly as one part of a wider comparison; this page is the detail on Japanese tax residency and the payroll calendar around it, plus the host-country half most Japan-side guides skip.

On this page

  1. Resident and non-resident
  2. The one year presumption
  3. When the plan changes: two real cases
  4. Before departure: year-end adjustment
  5. Pay from Japan after departure
  6. The host country's half
  7. Payroll calendar

1. Resident and non-resident

Under the Income Tax Act, a resident has an address (jusho) in Japan, or a residence (kyosho) continuously for a year or more; anyone else is a non-resident. "Address" means the centre of the person's life, judged on objective facts, not intention. A resident is taxed on all income, wherever earned; a non-resident, only on Japanese-source income.

2. The one year presumption

According to the National Tax Agency, someone who goes abroad for an occupation normally requiring a stay of a year or more is presumed not to have a Japanese address, and so is a non-resident, unless it is clear from the outset the stay will be under a year. A spouse or dependants living with them abroad are presumed the same way. Write the planned period into the secondment order or contract; it is the starting point for the judgement, not the end of it.

3. When the plan changes: two real cases

Overseas restaurant openings slip, and postings get cut short. The NTA's published Q&A does not change the category retroactively in either direction; only the date going forward changes.

Real caseOriginal planWhat changes and when
The opening slips past 12 months. A chef sent for what was planned as 10 months is still there at month 13 because the fit-out and licensing ran late.Under one yearResident at departure; non-resident from the date it becomes clear the stay will reach a year or more, not retroactively from departure
A visa refusal or renewal problem cuts an assignment short. A chef sent for a planned two years is refused a renewal and must return at month 10.One year or moreNon-resident from departure; resident from the date it becomes clear the stay will end under a year, not retroactively

Record internally the date each plan change became clear (the licensing delay confirmed, the refusal notice received). That date, not the departure date and not the final return date, is what you can show the tax office if the classification is ever questioned.

4. Before departure: year-end adjustment

When a resident who filed the dependants declaration, earning ¥20 million or less, is transferred abroad for a year or more, the payer must complete the year-end adjustment (nenmatsu chosei) by departure. Insurance premium deductions cover only amounts paid to that date; dependant and spouse deductions, and estimated family income for the full year, are judged on the situation at departure. Anyone who must file a return (pay over ¥20 million, or other income) and has no tax agent must file a final return (junkakutei shinkoku) by departure; otherwise they appoint a tax agent (nozei kanrinin) and notify the tax office, needed by anyone still renting out a home in Japan.

5. Pay from Japan after departure

PaymentJapanese withholding
An employee's pay for work abroadNone; not Japanese-source income
A bonus paid in Japan whose calculation period includes time worked in Japan20.42% on the part relating to work in Japan
An officer's remuneration from the Japanese companyJapanese-source income even for work abroad, 20.42%, unless working abroad full time as an employee (for example, an overseas branch head)

If an employee becomes non-resident partway through a pay period of one month or less, no withholding is needed even if the period includes work in Japan, unless the whole amount relates to Japan.

6. The host country's half

Japanese non-resident status settles only the Japanese side. The host country almost always taxes anyone working physically inside its borders from day one, regardless of who pays the salary, in what currency, or what Japan calls the person. Two things follow.

For the pay design this feeds into, see pay design for chefs working abroad.

7. Payroll calendar

WhenPayroll does this
60 days before departureConfirm the planned period in the secondment order (under a year, or a year or more). Decide whether a tax agent is needed. Brief the chef on resident tax and, if relevant, on tax equalisation or protection.
30 days before departureCollect the insurance premium deduction declaration, the dependants declaration (or change declaration), and the basic/spouse deduction declaration. Confirm whether a final return is required.
Departure dayComplete the year-end adjustment if the year-or-more, ¥20 million or less conditions are met. File the final return if required and no tax agent is appointed, or submit the tax agent notification.
First bonus paid from Japan after departureIdentify the share of the calculation period worked in Japan and withhold 20.42% on that share. Check officer remuneration separately if the chef also holds a Japanese office.

If the plan changes as in section 3, add a fifth entry: the date the change became clear, and which way the classification moved. For social insurance on the same posting, see pension and health insurance for chefs working abroad and social security agreements for a chef sent abroad. Resident tax (juminzei) is charged by the municipality where the chef had an address on 1 January, on the previous year's income, regardless of departure date; tell the chef before they leave so the first year's bill is not a surprise.

Rates and thresholds checked against NTA Tax Answer pages in September 2026. The ¥20 million year-end adjustment threshold and the 20.42% withholding rate are set by law and change rarely; the 2027 addition of new taxes to withholding is confirmed but its rate is not yet published. Next check: before any 2027 payroll run.

Frequently asked questions

Does becoming a non-resident in Japan mean no tax is due anywhere?

No. It only stops Japanese withholding on pay for work performed abroad. The host country almost always taxes the same work under its own law from day one, so confirm local withholding separately.

What if the opening is delayed and the assignment runs past a year?

A chef planning under a year stays a resident until it becomes clear the stay will reach a year or more; from that date they become a non-resident, not retroactively.

What if a visa refusal cuts the assignment short?

A chef planning a year or more stays a non-resident until it becomes clear they will return within a year; from that date they become a resident again. Keep the refusal notice as evidence of when that became clear.

Do we have to complete the year-end adjustment before departure?

Yes, where the chef is a resident who filed the dependants declaration, earns ¥20 million or less, and is transferred abroad for a year or more, using premiums paid and family situation as they stand at departure.

Who decides whether we absorb the host country's extra tax?

You do, before departure. Tax equalisation keeps net pay level with Japan; tax protection reimburses only the extra tax the assignment causes. Either works; choose and write it down before the first host-country tax bill.

General information, not tax advice. Residence depends on the facts of each case, and host-country tax rules are outside what we verified here. Check the NTA and other official sources below, verified in September 2026, and consult the tax office, a licensed tax accountant, and a local adviser in the host country.

Sources

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