Important
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For information call now:
(347) 989-4566
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Additional information
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Internal Revenue Service
Austin Service Center
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
IN
1-800-829-1040
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Japan - Personal Services Income
Income that residents of Japan receive for personal services as independent
contractors or self-employed individuals is a subject of the treaty. Business
profits are exempt from U.S. income tax unless the individual has a permanent
establishment in the United States. If they have a permanent establishment in
the United States, they are taxed on the profits attributable to the permanent
establishment.
Income that residents of Japan receive for services performed in the United
States as employees (dependent personal services) is exempt from U.S. income tax
if the residents meet the following requirements.
- They are in the United States for no more than 183 days in any 12-month period
beginning or ending in the tax year.
- Their income is paid by, or on behalf of, an employer who is not a U.S.
resident.
- Their income is not borne by a permanent establishment that the employer has
in the United States.
The exemption does not apply to directors� fees and similar payments received by
a resident of Japan for services performed as a member of the board of directors
of a company that is a resident of the United States.
The exemption does not apply to a resident of Japan who performs services as an
employee aboard a ship or an aircraft operated in international traffic by a
U.S. resident. Public entertainers (such as theater, motion picture, radio, or
television artists, musicians, or athletes) from Japan who earn more than
$10,000 in gross receipts, including reimbursed expenses, from their
entertainment activities in the United States during the tax year are subject to
U.S. tax.
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