Japan's headline corporate income tax (CIT) rate is 23.2.
The headline personal income tax (PIT) rate is 45 plus 2.1% surtax.
The standard VAT/GST (or equivalent consumption tax) rate is 10 (consumption tax). Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual is a Japanese tax resident if they have a domicile (jusho) in Japan or have maintained a temporary place of abode (kyosho) in Japan for one year or more. Resident taxpayers are further split: a "non-permanent resident" (a non-Japanese national resident for five years or less within the preceding ten years) is taxed on Japan-source income plus foreign-source income actually paid in or remitted to Japan, while a "permanent resident" (Japanese nationals, or foreign nationals resident more than five of the preceding ten years) is taxed on worldwide income. Non-residents are taxed only on Japan-source income, generally at a flat 20.42% rate.
Japan's CFC regime applies to a foreign related corporation (FRC) that is more than 50% owned (by vote or value) by Japanese residents and corporations, or otherwise under de facto Japanese control. Undistributed profits of an FRC are included in the Japanese parent's taxable income where the FRC's effective tax rate falls below a trigger rate: 30% for "paper" or "cash box" companies (reduced to 27% for parent tax years beginning on or after April 1, 2024, reflecting Pillar Two considerations) or 20% for other passive-income cases. Active-business income generally falls outside CFC attribution under an economic activity exemption.
Japan applies two separate interest-limitation regimes. The thin capitalization safe harbor denies deduction of interest paid to a foreign controlling shareholder once average debt from that shareholder exceeds three times (3:1) the shareholder's equity interest. Separately, the earnings stripping rules cap deductible net interest expense (to both related and, in some cases, third parties) at 20% of adjusted taxable income - tightened from 50% under the 2019/2020 reform implementing BEPS Action 4. Where both rules could apply, the more restrictive disallowance governs.
As of May 1, 2026, Japan has 90 tax conventions in force covering 157 jurisdictions per PwC (some conventions, such as the former USSR treaty, apply across multiple successor states). Japan has also concluded standalone tax information exchange agreements with 11 further jurisdictions. The full, current treaty list is maintained by Japan's Ministry of Finance.