How can I avoid double taxation in Japan?
Japan has a foreign tax credit system and dividend exclusion system in order to avoid international double taxation. Japan also has concluded tax treaties with many countries for the purposes of avoiding cross-border double taxation and preventing tax evasion.The provisions of tax treaties supersede those of domestic law.
For the tax liability in Japan of individuals and corporations domiciled in a country with which Japan has a tax treaty, the location of the source of income defined under Japanese law may at times be amended from Japan to her counterpart (or from her counterpart to Japan) to accord with these tax treaties.
Tax treaties grant tax reduction or exemption for various types of income generated in Japan. Taxes on cross-border income have been exempted or reduced the tax rate by the tax treaties.
Through these measures, majority of international double taxation can be avoided.