Seventh Sense Group

Akasaka 2-12-10

Tokyo, 107-0052

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Income Tax in Japan: RSUs

Most people receiving RSUs must file a Japanese Income Tax Return

If your company has granted you restricted stock units (RSUs), and you are wondering what the taxation in Japan is and whether you have to file an income tax return, we have your answers.

At the time of vesting, the RSU becomes employment income. If the stock option is from a foreign company, or if there was no withholding tax, you have to report it via an income tax return. You will be taxed according to your income tax bracket.

If you sell the stock after it vests, and you have realized capital gains, then you will be subject to capital gains.

On your income tax return you have to report both incomes.

For the preparation of your income tax return, please feel free to contact us.

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