🧾 NTA Ruling on Ikusei Shuro Benefit Tax

❓ What was published?

On September 15, 2026 (Reiwa 8), Japan's National Tax Agency (NTA) published a written reply case titled "Taxation of benefits that Ikusei Shuro foreign workers receive from Ikusei Shuro implementing organizations." The inquiry was filed jointly by the Immigration Services Agency (residence support division) and the Ministry of Health, Labour and Welfare (Counsellor for Foreign Worker Development and Employment). Under the Ikusei Shuro (training and employment) system that starts in April 2027, the accepting employer is expected to provide certain benefits to the foreign worker. The two agencies asked the NTA to clarify the income tax treatment before the system goes live. The written reply system lets taxpayers or government bodies present a concrete set of facts and ask the NTA for its view in writing. Here the NTA replied that, so long as the facts stated in the inquiry hold, it has no objection to the inquirer's view. The underlying facts, the view the inquirers sought, and their reasoning are set out in Attachments 1 to 3 on the published page. The cited provisions are Article 28 of the Income Tax Act (employment income) and Article 183 (obligation to withhold tax on salaries and wages) — so the issue is whether the benefit counts as salary and whether withholding applies at payment. Until now, with the Ikusei Shuro system not yet in force, no official document had addressed this. The NTA adds two caveats: (1) this is a general reply premised on the stated facts, and a different tax treatment may arise when applied to an individual taxpayer's actual transaction; (2) the reply is the NTA's view and does not bind any individual taxpayer's filing.

👥 Who is affected?

• ●Foreign nationals planning to come to Japan from April 2027 under the Ikusei Shuro status
• ●Current technical intern trainees who may transition to the Ikusei Shuro system
• ●Staff at companies accepting Ikusei Shuro workers (implementing organizations)
• ●Payroll and accounting staff who handle withholding tax, and supervising support organizations
• ●Advisors, immigration lawyers and tax accountants who support foreign workers

🌏 Impact on foreign residents

Whether a benefit counts as salary directly affects take-home pay. If it is treated as salary, income tax (and the special reconstruction income tax) is withheld at payment, and it flows through to year-end adjustment, the withholding tax slip (gensen choshu hyo), and the following year's resident tax. For people arriving under Ikusei Shuro, this explains where the gap between the contract figure and the amount actually deposited comes from. For accepting employers, the answer changes the paperwork: whether withholding is required each time a payment is made. The value of this reply is that the NTA's view is now on record in writing before the system starts in April 2027. Still, the reply is premised on the specific facts presented. If your contract terms or the nature of the payment differ, the conclusion can differ too. Check your pay slip and withholding slip, then confirm your own case with your employer's payroll staff or your local tax office.