2026.05.07 International Taxation Japan’s Exit Tax: A Framework for the Tax Deferral Decision

With the significant tightening of the so-called minimum tax regime starting in 2027, some individuals may be considering relocating overseas during 2026.If you become subject to Japan’s exit tax, one of the first key issues to consider is whether to elect the tax deferral. While the deferral allows you to postpone your tax liability, it also comes with additional burdens, such as interest charges, collateral requirements, and ongoing compliance obligations. Therefore, electing deferral is not always the right choice, and careful consideration is required based on your individual circumstances. In this article, we outline the basic framework for making this decision. <Comparison of Systems> Payment at Exit Tax Deferral Submission […]