DoubleTaxationUnited States – Japan tax treaty: residence, 183 days, rates
Convention between the Government of the United States of America and the Government of Japan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (signed at Washington on 6 November 2003), as amended by the Protocol signed on 24 January 2013
- Signed: 2003-11-06
- In force since: 2004-03-30
- Official text
If both countries treat you as resident
- Notwithstanding paragraph 1, a U.S. citizen or an alien lawfully admitted for permanent residence in the United States (green-card holder) is a resident of the United States only if (a) he is not a resident of Japan under paragraph 1, (b) he has a substantial presence, permanent home or habitual abode in the United States, and (c) he is not a resident of a third State under a treaty between Japan and that State. Art. 4(2) of the Japan–U.S. Convention
- An individual resident of both States under paragraph 1 (other than one covered by paragraph 2): (a) is deemed a resident of the State in which he has a permanent home available to him; if he has one in both States, of the State with which his personal and economic relations are closer (centre of vital interests); (b) if that State cannot be determined or he has no permanent home available in either State — of the State where he has an habitual abode; (c) if he has an habitual abode in both or neither — of the State of which he is a national; (d) if he is a national of both or neither, the competent authorities settle the question by mutual agreement. Art. 4(3) of the Japan–U.S. Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in any 12-month period; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 14(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7 |
| Pension | Only the country of residence. | Art. 17(1) |
| State pension (social security) | Only the country of residence. | Art. 17(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 18(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 18(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2)(b) |
| Interest (deposits, bonds, loans) | Only the country of residence. Other rates or exemptions apply in some cases (see the article). | Art. 11(1) |
| Royalties (copyright, licences) | Only the country of residence. | Art. 12(1) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 13 |
| Other income | Only the country of residence. | Art. 21(1) |
How double taxation is relieved
- Japan: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(1)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2)-(3)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.