Japan - Tax authorities increase attention on company-provided housing

Global Watch ()

Japan - Tax authorities increase attention on company-provided housing

Company-provided housing is a popular form of employee benefit in Japan, and when properly structured provides favorable tax treatment. However, company-provided housing programs are coming under closer scrutiny from Japanese tax auditors, especially if they believe these benefits are being provided in lieu of cash compensation.

The purpose of this Global Watch is to share recent audit activity by the tax authorities and to help employers have a better awareness and understanding of the potential challenges to their company-provided housing programs.  Companies should review their programs and make any necessary changes and improvements.

Company-provided housing is a popular form of employee benefit in Japan, and when properly structured provides favorable tax treatment. However, company-provided housing programs are coming under closer scrutiny from Japanese tax auditors, especially if they believe these benefits are being provided in lieu of cash compensation.