In recent years the Japanese tax authorities have been auditing the declaration by Japanese resident individuals of awards of share options, restricted stock awards or similar stock based compensation made to them by the foreign parent company of their Japanese employer.
Restricted stock awards with a vesting periods of around three to five years have often been part of the compensation of Japan based employees of foreign groups in the financial sector. Read More
In June 1011 the Japanese Diet passed 2011 tax reform legislation delayed by the March earthquake including tax incentives for foreign investors.
Although not generous when compared with other Asian countries, this represents the first time the Japanese government has passed a meaningful set of tax incentives targeting inbound investment.