Summary: The Transferee VISA in Japan, pivotal for intra-company transfers, necessitates that foreign employees dispatched from an overseas head office to a subsidiary, branch, or office in Japan receive salaries comparable to their Japanese counterparts. This is a legal requirement aimed at ensuring equitable compensation across the board.
Addressing Salary Disparities
For employees transferred from countries with similar or higher salary standards than Japan, this requirement generally does not present issues, as their compensation is often calculated based on their home country’s standards. However, for those coming from countries with a substantially lower GDP per capita, it is imperative to adjust their salaries to meet Japanese standards to secure visa approval.
Determining the Appropriate Salary Level
Though there isn’t a strict guideline defining the exact salary amount needed, the general consensus is that it should be reasonably comparable to that of local Japanese employees. If there are no Japanese employees in the company, the salary should not fall below the starting salary for similar positions in the area. Salaries are assessed annually, including bonuses, and divided by 12, with reimbursements like commuting, family, and housing allowances excluded.
Attention to Exchange Rate Fluctuations
It’s crucial to highlight that since the salary for visa approval is calculated in Japanese Yen, any significant appreciation of the Yen could potentially decrease the salary amount when converted from other currencies. This necessitates vigilance from companies that pay salaries in the home country’s currency.
Flexible Salary Payment Sources
Regarding salary payments, the immigration authorities are flexible, accepting full payment either from the home country or the Japanese subsidiary, or a combination of both. Many companies opt to pay the base salary from the head office while the subsidiary in Japan covers cost of living adjustments. This practice is also observed in large Japanese corporations sending staff to high-cost cities like London, where additional allowances are provided to account for the higher living costs.
Ensuring Compliance during Visa Renewal
At the time of visa renewal, providing tax payment proofs is mandatory to verify that the income is consistent with the contracted amount and that taxes have been duly paid.
Consultation for Application and Compliance
For any queries or uncertainties regarding the Transferee VISA application process, we encourage you to reach out to our office for guidance and support.
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He has 18 years experience in Investment Banking at Mitsubishi UFJ Morgan Stanley. He had provided financial advisory more than 500 entrepreneurs and senior management.
He currently supports many foreign entrepreneurs in Japan, taking advantage of the experience of an investment banker. He is the best expert of Business VISA in Japan.
Gyoseishoshi Immigration Lawyer
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