U.S. tax filing · Tokyo
U.S. Tax Filing for Americans in Tokyo
Fixed-fee support for U.S. citizens and Green Card holders in Tokyo — Japanese salary, NISA accounts, Japanese funds and PFICs, the U.S.–Japan treaty, yen FX, FBAR and FATCA reporting.
By Danilson Ramos · Founder, Atamatax
Published June 2026 · Updated November 2026
Tokyo is home to a long-established American community across finance, tech, education, gaming and multinational headquarters roles. Japan and the U.S. have a comprehensive tax treaty and a totalization agreement, but popular Japanese savings products and the need to convert yen amounts for a U.S. return can complicate an otherwise routine filing.
Typical situations we see in Tokyo
- NISA accounts: tax-advantaged in Japan, but the U.S. generally does not recognise the wrapper, and the Japanese funds inside can be PFICs.
- Japanese mutual funds and investment trusts held through a local broker that are commonly PFICs (Form 8621).
- Yen-denominated income, accounts and gains that must be converted to U.S. dollars, where exchange-rate movements can themselves create reportable currency gains in some cases.
- Finance and tech professionals with RSUs, options and bonuses to reconcile across Japanese and U.S. rules.
- Multiple Japanese bank and brokerage accounts that together cross the FBAR and FATCA (Form 8938) thresholds.
NISA and Japanese funds
A NISA is tax-free in Japan, but for a U.S. person the wrapper is generally not recognised and the funds inside may be PFICs, which carry extra reporting. The U.S.–Japan treaty helps in several areas but does not blanket-shelter these products. It is generally worth reviewing your holdings before filing. Atamatax provides preparation support; this is not individualized advice.
Japan specifics for the US return
- US–Japan income tax treaty and totalization agreement — both in force. The totalization agreement decides which country's social security you pay into; see totalization agreements.
- NISA — tax-free in Japan, taxable to the IRS. The investment trusts (tōshin) and Japanese ETFs inside are generally PFICs.
- iDeCo — Japan's individual pension plan is not a US-recognised retirement plan; contributions are not deductible on the US return.
- Resident tax (jūminzei) — billed on the previous year's income and paid the following year. It is an income tax and can count for the foreign tax credit; because it is billed a year late, the US year it lands in depends on whether you claim credits on the paid or the accrued basis.
- Calendar tax year — Japanese national income tax runs January to December, like the US year.
Authorities cited
- IRC §1291 — IRC §1291 — Interest on tax deferral (excess-distribution regime)
- IRC §1297 — IRC §1297 — Definition of a passive foreign investment company
- IRS Form 8621 — About Form 8621 — Information Return by a Shareholder of a PFIC or QEF
- 31 CFR §1010.350 — 31 CFR §1010.350 — FBAR (FinCEN Form 114) filing requirement and $10,000 threshold
- FinCEN Form 114 (FBAR) — Report of Foreign Bank and Financial Accounts (FBAR)
- IRS Form 8938 — About Form 8938 — Statement of Specified Foreign Financial Assets
- IRC §6038D — IRC §6038D — Information reporting of specified foreign financial assets (Form 8938)
Primary sources (Cornell Legal Information Institute for the US Code and CFR; IRS.gov for forms, procedures, and treaty documents). This page is general information, not individualized tax or legal advice.
Atamatax provides tax preparation support and educational resources. This website does not constitute legal or tax advice.