Residency status for Japanese income tax

Non-resident, Non-Permanent Resident, Permanent Resident, and Departing — with the 5-of-10-years test explained.

Japan taxes individuals differently depending on their residency status (居住形態). There are three statuses plus a special "departing" flag, and each has a different tax base.

Non-resident (非居住者)

No domicile in Japan and not present for > 1 year. Taxed only on Japan-source income, typically at a flat 20.42% via withholding. Non-residents who derive business income from Japan must file a special Form H return and appoint a 納税管理人 (tax representative).

Non-Permanent Resident (NPR / 非永住者)

A resident who (a) is not a Japanese national and (b) has had a domicile or residence in Japan for no more than 5 years in aggregate during the past 10 years. NPRs are taxed on:

All Japan-source income; and
Foreign-source income only to the extent it is paid in or remitted to Japan.

The common misconception is that NPR means "less than 5 years since arrival." That is wrong — it is 5 of the last 10, measured in aggregate. A returnee who lived in Japan 4 years in 2012–2015 and came back in 2023 may already have exited NPR status.

Permanent Resident (PR / 永住者)

Anyone who has had a domicile in Japan for more than 5 of the last 10 years, and all Japanese nationals. PRs are taxed on worldwide income. The "permanent resident" here is a tax concept — it is different from the immigration 永住者 visa.

Departing

If you leave Japan mid-year, file a return for the Jan 1 – departure date period before you leave, or appoint a 納税管理人 and file in the normal window. Use the "Departing" residency option in the wizard to have the tax-representative forms attached.

Practical implications

Status	Base	Key forms
Non-resident	JP-source only	Form H, 納税管理人届出書
NPR	JP + remitted foreign	Main return (01)
PR	Worldwide	Main return (01), 外国税額控除 schedule
Departing	Year-partial	納税管理人 forms (09)

Authoritative reference: NTA tax guide for foreigners, English edition, "Outline of Japanese Income Tax."