Certain special allowances are deemed non-taxable (Withholding Tax Guide 2024, sections 2.II.2 and 2.II.3). These are:
| Type | Detail |
| Business travel expenses | Money and items provided for travel required by the employer are not taxable.
This includes travel for relocation at the start and end of employment (see 7.1). It even includes travel for the bereaved of an employee who has died. |
| Night/day duty allowance | Up to JPY 4,000 per day can be paid tax free.
If a meal is provided, then its cost must be deducted from the allowance. |
| Meals | Meals provided by an employer are tax free if the employee pays for half or more of the cost of the meal.
However, this is up to a maximum amount that can be borne |
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Web page updated on 17 Mar 2025 15:44